How much do pawn shops pay for gift cards?

Pawn shops typically pay significantly less than the face value for gift cards, often offering half or even less of the card's stated worth.

Pawn shops are interested in acquiring gift cards at a substantial discount, enabling them to use these cards later to purchase goods from the respective retailers at what amounts to a considerable saving. This business model allows them to effectively buy inventory or goods at 50% off or more when they redeem the cards.

Understanding the Valuation Process for Gift Cards

When you bring a gift card to a pawn shop, their primary goal is to assess its immediate resale potential and profitability. They consider several factors to determine their offer:

• Discount Margin: The core principle is to acquire the card at a deep discount, ensuring they can realize a significant profit when they redeem it. This often means paying 50% or less of the card's actual value. For example, a $100 gift card might only be purchased for $40 or $50.
• Retailer Popularity: Gift cards for popular and well-known national retailers (e.g., major department stores, electronics stores, popular coffee chains) are generally more desirable. These cards have broader appeal and are easier for the pawn shop to utilize quickly. Cards for less common or highly specialized stores may fetch an even lower percentage, or might not be accepted at all.
• Balance Verification: Pawn shops will always need to verify the exact balance on the gift card. This usually involves a quick check online or by phone using the card number and PIN. Cards without an easily verifiable balance may be rejected.
• Card Type and Condition: Physical gift cards with an intact PIN are generally preferred over digital codes, as they offer a tangible asset that is perceived as less prone to fraud. The condition of the card itself (e.g., scratched, damaged) can also play a minor role.
• Expiration Dates and Restrictions: Cards with no expiration date are more valuable. Any usage restrictions or upcoming expiration dates will significantly reduce the offer or lead to rejection.

Why the Low Payout?

The low payout percentage reflects the pawn shop's business strategy. By purchasing a $100 gift card for $50, they essentially gain the ability to buy $100 worth of goods for half the price. This substantial discount creates their profit margin. They are not interested in paying near face value because that would eliminate their profit incentive.

Example Payouts for Gift Cards

While exact offers vary by shop and card, here's a general idea of what you might expect for common gift card values:

Note: These are estimates. Actual offers can be lower and depend heavily on the factors mentioned above.

For those looking to get quick cash for gift cards, pawn shops offer a fast, albeit low-value, option. Other avenues like online gift card marketplaces or direct resale might yield a higher percentage, but often involve more steps and time.