To combat money laundering, many jurisdictions have implemented "Know Your Customer" (KYC) requirements for gift card resellers. In the U.S., the and various state-level pawnshop laws require high-volume resellers to collect identification, limiting the anonymity that once characterized the trade. Conclusion
Abstract
The phrase "we buy gift cards for cash" has transitioned from a niche Craigslist advertisement to a multi-billion-dollar secondary market ecosystem. This paper examines the economic underpinnings of the gift card resale industry, the consumer psychology of "unclaimed value," and the regulatory challenges posed by money laundering and fraud. we buy gift cards for cash
For the buyer, the incentive is arbitrage. Resellers purchase cards at a steep discount and sell them to other consumers at a slight discount (e.g., selling a $100 card for $92), netting a profit margin on the spread. This paper examines the economic underpinnings of the