5 ms·

Why wouldnt you just buy a gift card with cash at these stores?

by mahyarm 10y ago

deleted 10y ago
[deleted]
jhenkens 10y ago
Yeah, I don't get it either. Maybe if you want a smaller denominatioin? I think gift cards start at $25.
- setheron 10y ago
  Usually you can load whatever amount you want on a gift card. They don't come pre-loaded with anything I thought and you pay for what you want at the cashier.
redial 10y ago
Bar codes are probably cheaper for Amazon, as they don't have to make a card, transport it, store it and sell it.
- wyldfire 10y ago
  Retailers like Amazon sell those cards wholesale at less than the face value. There's some overhead too but I would wager that's covered by a gift card distributor in consideration for markup.
rsucj 10y ago
There's a ton of fraud with Amazon Gift Cards too. On sites like Paxful you can buy a $500 card for $250. Then people use the cards to buy other digital gift cards or items. It seems hard to stop.
- asclepi 10y ago
  T&C usually restrict using gift cards to purchase other gift cards (inter alia for the reason you mentioned) [1]. [1] https://www.amazon.com/gp/help/customer/display.html?nodeId=3122091 https://www.amazon.com/gp/help/customer/display.html?nodeId=... (see under 2. Limitations.)
dangrossman 10y ago
There's benefits over gift cards for all parties: (1) The purchase process is simpler: retrieve an Amazon Cash bar code, load cash onto it at the register, it's now on your account. You can reuse the same barcode every time you want to load cash onto the account. It can be a printed piece of paper you keep in your wallet. Previously, you had to go to a retailer with physical cards in stock, pull one off the shelf, get it activated at the register, scratch the code, and go to a computer to load the code onto your Amazon balance. If your only internet access is at a library or school, that means two trips to reload your balance. (2) It's cheaper for Amazon. They're paying a commission to the retailer and distributor (effectively selling the cards at less than face value). Amazon Cash eliminates most of that margin, and the distributor altogether. The commission for the retailer doesn't have to be very high since none of the transactions will have credit card fees.
InclinedPlane 10y ago
Gift cards are a convoluted system that not everyone is aware of. This is simpler.

Why wouldnt you just buy a gift card with cash at these stores?

by mahyarm 10y ago

Why wouldnt you just buy a gift card with cash at these stores?

deleted 10y ago

[deleted]

jhenkens 10y ago

Yeah, I don't get it either. Maybe if you want a smaller denominatioin? I think gift cards start at $25.

setheron 10y ago
Usually you can load whatever amount you want on a gift card. They don't come pre-loaded with anything I thought and you pay for what you want at the cashier.

redial 10y ago

Bar codes are probably cheaper for Amazon, as they don't have to make a card, transport it, store it and sell it.

wyldfire 10y ago
Retailers like Amazon sell those cards wholesale at less than the face value. There's some overhead too but I would wager that's covered by a gift card distributor in consideration for markup.

rsucj 10y ago

There's a ton of fraud with Amazon Gift Cards too. On sites like Paxful you can buy a $500 card for $250. Then people use the cards to buy other digital gift cards or items. It seems hard to stop.

asclepi 10y ago
T&C usually restrict using gift cards to purchase other gift cards (inter alia for the reason you mentioned) [1]. [1] https://www.amazon.com/gp/help/customer/display.html?nodeId=3122091 https://www.amazon.com/gp/help/customer/display.html?nodeId=... (see under 2. Limitations.)

dangrossman 10y ago

There's benefits over gift cards for all parties: (1) The purchase process is simpler: retrieve an Amazon Cash bar code, load cash onto it at the register, it's now on your account. You can reuse the same barcode every time you want to load cash onto the account. It can be a printed piece of paper you keep in your wallet. Previously, you had to go to a retailer with physical cards in stock, pull one off the shelf, get it activated at the register, scratch the code, and go to a computer to load the code onto your Amazon balance. If your only internet access is at a library or school, that means two trips to reload your balance. (2) It's cheaper for Amazon. They're paying a commission to the retailer and distributor (effectively selling the cards at less than face value). Amazon Cash eliminates most of that margin, and the distributor altogether. The commission for the retailer doesn't have to be very high since none of the transactions will have credit card fees.

InclinedPlane 10y ago

Gift cards are a convoluted system that not everyone is aware of. This is simpler.