So we covered GiftCard Zen on my sales numbers and it was a little over $16.5k and I got back approximately 85.5%.
Today, we’ll look at my numbers with Cardpool. My total transactions with Cardpool is a little bit larger compared to GiftCard Zen only because I’ve worked with Cardpool since the end of 2012. I started my relationship with GiftCard Zen at the end of 2013.
That being said, I think it’s amazing that my percentages returned with GiftCard Zen and Cardpool is very close. Only off by 196 basis points. That means both sites buy the gift cards that I sell at nearly the same rates.
I can say I did sell a few more Exxon gift cards and a ton of Wholefoods gift cards on Cardpool and those vendors are generally 90%+ and that is why Cardpool is a slightly higher rate.
Do I have a preference for either site? Not really, I sell to whoever has the highest rates. The biggest gripe I have with Cardpool is the 5% lower rate you would get for selling a digital gift card. Other than that, I have no complaints. Especially after figuring out the best practices to shipping thanks to some great reader contributions here and here. Well, the most recent time, trying to negotiate a rate increase I was met with silence for two weeks, but they made it up with timely responses for this spreadsheet and finally an answer on the rates which made me happy.
Sure, the total sales is 49097.84, compared to some of the heavy hitters out there who do this in less than a month. I have been gift card churning a little over 2 years, but I go at a pace that’s comfortable for what I do. I must balance my time commitment, deal finding, and everything else outside of the blog to these adventures.
Now that I know what cards to buy and resell, less time is spent on the hunt and more on the execution. I am debating if I should add a third site to sell to like when Plastic Jungle was around. It slightly complicates things, but additional leverage for me to sell.
Hello. If you took a 12.64% “loss,” what is the benefit of gift card churning? How are you making money?
That’s just face value I assume.
Correct just face value, all before portal earnings and credit card rewards.
The benefit of gift card churning is the ability to buy the points either from the portal or credit card or the combination of both. There are some instances of making money in the gift card churn, but not too often
But in the end, you have to come out ahead, right? Do the points make up for the loss of money?
Yep – they do, if they are credit card points, my redemption per point is greater than $.01 same with the miles that I earn through the portals
Are there any tax implications with bulk selling? I mean any chance of them reporting to IRS? They sure ask for SSN.
I would think there’s tax implications with bulk selling, especially when a profit is involved. Fortunately or unfortunately, I have not made any profits to have anything report to the IRS.
Just got an answer on the 1099, they do not do any kind of reporting to the IRS
No, my point is do they report it? If they are not reporting then no worries, but if they do report it to IRS and IRS audits you, then it would be too much headache for these points. You can still prove that you haven’t made any profits, but so you may not have to pay taxes but its still a lot of mess to deal with IRS.
Have you ever asked them if they report any particular amount or above to IRS?
Got it. No, in the two years selling with Cardpool they have not sent me a 1099. Not sure if they report it, but if they do, I would expect a 1099. I will email them and find a definitive answer for you and update with another comment.
“Just got an answer on the 1099, they do not do any kind of reporting to the IRS”
Thank You. That makes me 1 step closer to Gift Card sell. I am very good at math and carry genes from a father who is super good at stocks. I believe I can work out this as positive deal or at least comparable to Bluebird route via VGCs. I can’t have access to more than 2 cards at at time (like many others who got a lot more Serve/bluebird). So I was looking at alternative and I see this a good option. Anyway, so I started while I was waiting for your response, I bought and sold $4000 already with $80 profit (plus credit card points). I would have lost $20 if I used VGCs-Bluebird instead of this.
Thank you for finding answer for me, GC Zen didn’t give me answer about 1099 may be because I don’t have any business relation with them yet. Appreciate your help.
Sounds good! Yea Cardpool told me no 1099. I can ask GCZ for you. I’m supposed to have a call with someone from GCZ tomorrow.
Did you ask GCZ?
I did, here is the response from GCZ:
“Also, no, we don’t send out 1099’s at all.”
Thank you for clearing clouds. 🙂
You’re welcome! Good luck!