Getting access to discounted gift cards
You might think a $100 gift card is always going to cost $100 plus tax.
However, by purchasing discounted gift cards, you can end up saving a significant chunk of change. With a discounted gift card, you could purchase that $100 gift card for just a smaller percentage of its entire value.
Discounted gift cards provide great savings to individual and corporate buyers alike. So how and where can you purchase discounted gift cards to unlock great savings?
Shameless plug: Using WeGift, companies can get access to gift card discounts of up to 25% on over 700 major brands.
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What is a discounted gift card?
A discounted gift card is a stored value money card that the consumer can purchase for less than face value. The value of the card remains the same despite the discounted price. For instance, if a customer pays $40 for a $50 Best Buy gift card, they can still buy $50 worth of goods at that retailer. This amounts to a 20% discount.
One way WeGift accesses the discounted gift card market is by purchasing - and offering - gift cards in bulk. Buying high volumes of gift cards often means major discounts to businesses or consumers that aren’t available to individuals who just buy gift cards here and there.
How to get discounted gift cards for in-demand brands
For some brands, discounted gift cards are very challenging to come by. For example, it’s rare to find a discounted Disney gift card due to the brand’s loyal customers and consistently high demand.
That said, it is possible to score discounts on hard-to-get gift cards with the right “stacking” strategy. This can involve leveraging credit card rewards points, cash-back apps, and loyalty bonuses. Standard gift card resale sites like CardCash.com and Raise.com also offer occasional discounts on rare gift cards, but they tend to be miniscule.
Understanding the secondary gift card market
It’s not uncommon for a gift card recipient to decide they have no use for a certain card. This is where the secondary gift card market comes in. Using websites, grocery stores, pawn shops, and other venues, individuals can sell, trade, or buy gift cards. Gift card resellers buy cards from these individuals at a discount to flip them.
These secondary gift cards are typically sold back to consumers at a discount. For example, a grocery store might pay someone $90 for their $100 Target gift card. The next day, they sell it to another buyer for $95 dollars, yielding a $5 profit for being the intermediary.
Avoiding scams with discounted gift cards
Unfortunately, gift cards and fraud sometimes go hand in hand. Twenty or thirty years ago, gift certificates were an even easier target for fraudulent activity, but physical and digital gift cards can still attract criminals looking for a payday.
It’s important to verify gift card value before purchasing. For physical cards, this means checking the packaging and making sure the PIN is intact. For digital cards, restrict purchases to legitimate retailers and well-known gift card websites.
Where to buy discounted gift cards
WeGift makes it easy to buy discounted gift cards from over 700 top brands. With the world’s largest catalog of digital gift cards, WeGift offers best-in-market discounts - up to 25% off - on retailers of all kinds. The WeGift platform has real-time, direct connectivity to digital gift cards and functions in multiple languages and currencies.
What kind of retailers offer gift cards?
Most of the major retailers offer gift cards—not just to boost profits but to help build their brand and foster loyalty among customers. Even for small businesses, the advantages of gift cards outweigh the downsides. It’s no surprise, then, that gift cards represented a $160 billion market in the United States in 2020.
Can gift codes be used in stores instead of plastic?
A gift code is the primary number on a gift card. Having this code handy—as well as the PIN and/or CVV—makes the physical card unnecessary, even for in-store transactions.
Physical versus digital gift cards
Some people actually still seem to prefer the crisp feel of plastic when it comes to gift cards. But the digital gift card market is rapidly expanding. With digital wallets becoming more mainstream, there is less of a need—or a desire—to carry physical gift cards. In 2021, however, physical gift card sales continued to outpace digital or virtual gift card purchases (30% versus 13%). Direct-to-mobile-wallet gift cards occupied the smallest proportion of consumer purchases (8%).
Printable vouchers and gift certificates are other examples of “physical” forms of payment, but they have limitations in that they typically don’t work online.
How does cash back work?
The worst thing that can happen to a gift card is for it to disappear in a drawer forever. Fortunately, there are multiple avenues available for redeeming gift cards for cash. Gift Card Granny, for example, offers cash back up to 92% of the value of the card.
Offline, there are other options for cash back, including mall kiosks and other resellers. However, fraud is always a concern when making private transactions.
How to get the best discounts on gift cards
For companies that use gift cards at scale, implementing gift card management software - like WeGift - is the best way to save money and reduce long term costs.
Through our intuitive platform and flexible API, WeGift customers are able to automatically get best-in-market discounts on major brands. With WeGift, it's easy to purchase gift cards in bulk as needed or setup integrations to distribute gift cards in a more automated way.
Which discount gift card site offers the best deals?
This depends on your definition of a good deal. For companies placing bulk orders, software like WeGift is the best way to easily get access to discounted gift cards, without having to negotiate with brands directly.
But for individuals, there are several websites that sell discounted gift cards. Raise.com offers a large selection and discounts up to 30%.
Something else to keep in mind is that while Sam’s Club and Costco stock discounted gift cards in their warehouses, they also sell them online. Sam’s Club also uses gift cards as part of a membership promotion.
Why pay full price when finding a discount gift card is only a click away?
The obvious answer to this question is convenience. Digital gift cards are gaining in popularity. The COVID-19 pandemic changed the game. Discounted gift cards are readily available from hundreds of retailers; consumers just need to know where to find them.
Want your favorite brand at a certain discount?
Selection is important. Fortunately, WeGift understands that the true value of a gift card is in the eye of the beholder. For this reason, WeGift allows for a tailored approach to gift card selection, which optimizes customer satisfaction.
Can you use discounts on gift cards?
Gift cards are a form of payment like credit cards, cash, and cryptocurrency. As long as the gift card is legitimate, the consumer can use it to purchase goods and services from that retailer. For the most part, consumers can use gift cards to purchase discounted items. Promo codes, coupons, and vouchers, however, often carry restrictions for use on sale items.
Can a gift card be used to pay for shipping and taxes?
The short answer is yes. The value of the card or promo code goes toward the final order total, which includes shipping and taxes.
Can gift cards be issued with any initial value?
Adding value to gift cards has become standard practice for many retailers. In the past, most gift cards had a set value. The consumer paid that amount for the card, and the recipient spent the amount printed right there on the front of the plastic.
That model has changed. With digital gift cards, setting the initial value has never been easier. Amazon’s limit is $500, but consumers can add virtually any amount to their Amazon account balance. This concept is called Amazon Cash, which reflects the versatility of gift cards in an ever-changing online marketplace.
How can customers access gift cards that were misplaced or never received?
Here is where electronic receipts come in handy. For the most part, retailers will replace cards that are lost or stolen, but they may require proof of purchase. For a digital gift card, it’s quite a bit harder to “lose” the card. This is one of the advantages of apps that exclusively use digital gift cards and mobile wallet technology.
Discounted gift cards: a golden opportunity
Sometimes a discounted gift card seems too good to be true. Why would a retailer like Walmart sell a gift card for $10 than it’s worth? At first glance, it can seem like Walmart is throwing money at consumers just to get them to shop there.
Which, in a way, they are. But in 2019, gift cards totaling $3 billion never made it out of the drawer—or console, or kitchen cabinet. Walmart and other retailers, then, understand the value of selling discounted cards. For consumers, it makes sense to buy them—so long as they intend to use them.
Want to learn more about getting access to discounted gift cards for your company? Schedule a demo of WeGift today.