Can Cardpool (YC W10) Solve the Unused Gift Card Problem?

I received a gift card to Macy's for $25 over Christmas and we haven't used it. It was for my daughter and I don't like the clothes they have there and at that price they don't have much I want in any other department so it sits in my wife's purse. I wouldn't sell it because it came from my daughter's Great Aunt and she loves my daughter and intended it for her benefit. I'm just hoping Macy's gets something for girls that isn't covered in pink so I can buy it.

I think this is a pretty common story especially if kids are involved.

I don't think it is. I always just re-gift (or simply give away) my unwanted gift cards. I think the bigger problem is people simply forget they even got them to begin with... and they become hidden in their wallet or drawer. The big box stores love this because the gift cards are already an interest-free loan...but this way they are just free money plain and simple. So the idea that these startups are going to work with these stores in someway to "solve" this problem seems unlikely.

I don't have unused gift cards but I do have gift cards with remnants on them. I'll buy a larger item and have 1-3$ left on the card which typically isn't enough to buy anything. I'll forget how much is on it and then never end up using it again...

Yes, it's an actual problem. One time for a birthday I got 3 Best Buy cards and 1 Circuit City card. It would have been nice to swap out the CC card for a BB card and do all the shopping at one place.

Also (and this is a bit more abstract), I buy myself iTunes gift cards in $20 chunks so that I don't just bleed away $0.99 at a time by buying music straight through my credit card. If I can get iTunes cards at a discount from a site like this, it's a win for me.

I've had the problem. This past Christmas my extended family did a white elephant/yankee swap/nasty christmas thing. I wound up with a Starbucks gift card b/c it was the most valuable gift available compared to the other items like a mini deep fryer, portable CD player (gotta love older relatives for being with the times), or a set of decorated measuring spoons.

I, however, do not drink coffee. After being introduced to Cardpool through YC, my problem was solved. Money in my pocket. :-)

You're lucky :). Not everyone will have unused gift cards, but you still benefit from being able to buy them at a discount. E.g. you get 30% off at 1-800-Flowers.com, 12% off Gap, 10% off iTunes, etc, stackable with any other coupons or promotions you can find. If supply meets demand, we're happy!

Unused Gift Cards is a real thing, although not so much a problem. At one of the places I work, we are about to introduce gift cards, and from a business standpoint they are awesome.

Anyone who has a business that could use gift cards should offer them. On average, gift cards will leave anywhere from 10% to 30% of the original total unused (depending on products the card can purchase and the total cost of the card).

These companies that are trying to solve the 'problem' (they are definitely not a problem if you are the one selling them) of unused gift cards may run into problems of their own. Read the back of most gift cards and you find that just like concert tickets, they are non-transferable, non salable, and have no cash value. While it would be incredible difficult to prove a certain gift card was transfered or sold, upset card sellers may be able to go after the companies facilitating the selling (pure speculation).

Personally, I don't think that unused card trading companies will take away much of the profitability of gift cards, but it also may make consumers feel more comfortable buying gift cards.

Either way, unused gift cards are very real, and if you can, you should look into selling them.

You clearly don't have anyone who insists on giving you, for example, $20 gift cards to Crate and Barrel: the gift that actually costs you money. You want to be able to tell them what you spent it on (to be nice), but there's nothing at Crate and Barrel that you can buy for $20.

I use the previous year's Christmas gift cards to buy gifts the following Christmas. :)

It is not a problem if you are the company selling the gift cards. Here is an old article showing how Best Buy profits from unused cards. http://www.foxnews.com/story/0,2933,237278,00.html

I generally try to spend the full value of the card at once otherwise I end up with cards with random amounts, lose track, and eventually forget about them.

I think there is also the point of trying to restrict what the card receiver can buy. Most people when giving a gift card do it so hopefully the person buys something that is a gift like a dvd rather than food/rent/alcohol ect

Grandma's give checks, why don't people do that. Perhaps it's more personal than cash

There are a lot of fungible goods that get sold on eBay just to perform arbitrage on discounting and get around sales tax.

The general idea's been around for a decade or so, and a new site starts up every few years aimed at it: http://www.google.com/search?&q=sell+gift+cards

One problem is that a large portion of the market is already taken by eBay, which does a brisk business in gift cards: http://gift-certificates.shop.ebay.com/Gift-Certificates-/31...