More and more people are using gift cards as an alternative to cash. There are some advantages to this in spite of the way many gift cards constrain you to purchase at a particular store. Gift cards can be purchased outright at many retail outlets. Some stores such as Costco sell them at a significant discount. Besides that, there is a whole market that has opened up where people deal in gift cards, almost like a stock market or currency exchange. Social networking and auction sites like eBay have lots of opportunities to buy gift cards, as do social buying sites like groupon.com. Auction sites need a little more care because not everyone who sells gift cards there are selling the real deal; do some research on the seller first.
Two sites that cater specifically to people who want to buy, trade, or sell gift cards are Swapagift.com and Certificateswap.com. Although the discounts available here are not as deep as you might find, say, on an auction site, the value of the gift card is secured by the seller’s credit card, so scams that sometimes turn up on eBay are less likely on these sites. The best time to look for deals on new cards is after major purchasing holidays; Christmas, Mother’s Day, Valentine’s Day.
Gift cards are also now available as a reward from credit cards that offer “rewards points.” Check with your card to see what kinds of cards are available. Some stores also offer special bargains to people who buy their gift cards. For instance, from 08 February to 14 March 2011, Lowe’s is offering their “Tax Refund Card.” Available in amounts from $500 to $4,000, Lowe’s will add 10% of the original amount to the card on 18 March. That’s at least an extra $50 of free money. No expiration date, no service fees (Details here).
For an excellent site with many more ideas on how to get discounted gift cards, check out this page on creditcards.com.
One word of warning. Some gift cards expire. Others do not. Pay close attention and make sure you use your gift cards before they expire.
