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>By that logic they should ban gift cards and in-game currency too. Except that it doesn't because people aren't buying $10,000+ in gift cards on the hope that

>By that logic they should ban gift cards and in-game currency too. Except that it doesn't because people aren't buying $10,000+ in gift cards on the hope that they will increase in value and then defaulting on their CC payments because said gift cards crashed. When trying to solve a problem you have to focus on the actual problem at hand, not philosophical musings.

wccrawford 8y ago
But they might buy $10k in gift cards and then refuse to pay their credit cards, and yet still have gift cards out that they can use later. Thinking about it that way, I'm surprised there isn't some kind of limits on gift card buying. (Or maybe there is, and I haven't read my agreement well enough.)
- pkaye 8y ago
  They probably look at the data and not many people do what you suggest.
- otterlicious 8y ago
  A store can cancel gift cards when a chargeback occurs. It's much harder for a cryptocurrency exchange to reverse a transaction.
- mrguyorama 8y ago
  Gift card companies have their own risk management, and are perfectly willing to deny purchases that look like that
- EpicEng 8y ago
  I imagine this is not a real problem, which is why they haven't addressed it (or, they have, and you just aren't aware.)
- jonknee 8y ago
  The difference is a percentage of people purposely buy more cryptocurrency than they can afford expressly because they think they will be able to sell it for more than they paid before the bill is due. Essentially the house flipping craze of the mid 2000s, but with credit cards and cryptocurrencies. No one thinks a $100 Best Buy card will be worth more than $100 in the future, so people don't load up on them looking to make a buck.
  - EpicEng 8y ago
    > No one thinks a $100 Best Buy card will be worth more than $100 in the future In fact, you know it will be worth less!
- saryant 8y ago
  There is, mostly on the merchant side and generally only with cash-equivalent gift cards. Buy enough of those and your bank is likely to shut you down. FlyerTalk is full of threads about this. There used to be a number of easy ways to buy Visa gift cards and then cash them out to your bank account. You could send a couple thousand bucks in a circle earning points off each purchase.
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wccrawford 8y ago

But they might buy $10k in gift cards and then refuse to pay their credit cards, and yet still have gift cards out that they can use later. Thinking about it that way, I'm surprised there isn't some kind of limits on gift card buying. (Or maybe there is, and I haven't read my agreement well enough.)

pkaye 8y ago
They probably look at the data and not many people do what you suggest.
otterlicious 8y ago
A store can cancel gift cards when a chargeback occurs. It's much harder for a cryptocurrency exchange to reverse a transaction.
mrguyorama 8y ago
Gift card companies have their own risk management, and are perfectly willing to deny purchases that look like that
EpicEng 8y ago
I imagine this is not a real problem, which is why they haven't addressed it (or, they have, and you just aren't aware.)
jonknee 8y ago
The difference is a percentage of people purposely buy more cryptocurrency than they can afford expressly because they think they will be able to sell it for more than they paid before the bill is due. Essentially the house flipping craze of the mid 2000s, but with credit cards and cryptocurrencies. No one thinks a $100 Best Buy card will be worth more than $100 in the future, so people don't load up on them looking to make a buck.
- EpicEng 8y ago
  > No one thinks a $100 Best Buy card will be worth more than $100 in the future In fact, you know it will be worth less!
saryant 8y ago
There is, mostly on the merchant side and generally only with cash-equivalent gift cards. Buy enough of those and your bank is likely to shut you down. FlyerTalk is full of threads about this. There used to be a number of easy ways to buy Visa gift cards and then cash them out to your bank account. You could send a couple thousand bucks in a circle earning points off each purchase.

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