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How does this work exactly? Are you doing arbitrage?

Often left unsaid in the "gift card" (or, "game key reseller" market) is that the items are acquired illegally and resold for a profit. This is money laundering territory, and is very easy to run afoul of the law.

Fraudulently obtained inventory is actually something I actively want to avoid. I don't want to go to jail, or risk getting banned from marketplaces - among ethical considerations.... I only go to authorized distributors where there is legal permission to resell these types of items. Incomm being the largest. Blackhawknetwork being another large player.

Do you have to deal with gift cards legally obtained but obtained anonymously using illegal money?

E.g. https://news.cybersixgill.com/how-gift-cards-are-used-to-lau...

What happened to Cardpool was pretty messed up! I knew some people in the industry who knew the people in charge and mentioned that one day they just started getting a bunch of complaints, and then bam - out of business.

But yes! especially in b2b sells. I always try to be super anal about kyc with selling to business buyers in bulk, and avoid buying from them. I straight up stick to institutional suppliers to avoid this issue :(

Correct! customer buys a playstation $10 card for $9.80, I buy it for $9.20, and pocket the spread.

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