Gift cards have continued to pique people’s interest in this digital age, as the asset is opening doors of opportunities. One of the perks is gift card trading, which is one of the fastest ways to make money online. But as the number of gift card traders increases, you may want to know how to sell gift cards on peer-to-peer (P2P) exchanges.
In recent years, gift card trading platforms have spurred the online space, almost at par with the number of gift card traders increasingly entering the market.
This is due to the high awareness of the potential of gift cards – which you can use to shop conveniently at designated stores, give to someone as a gift, or sell for cash/cryptocurrency.
Irrespective of the purpose of your gift card, you can trade it on P2P exchanges or over-the-counter (OTC) platforms. This is largely dependent on your preference.
However, this article will guide you on how to sell gift cards on peer-to-peer (P2P) exchanges.
What Are Peer-to-Peer (P2P) Exchanges?
P2P exchanges are online trading platforms enabling users to buy and sell gift cards directly without the meddlesome of a third party to carry out transactions.
The P2P exchange only provides the platform for buyers and sellers to meet, with the prerogative of the users actively involved in all the decisions on the exchange.
Advantages Of Selling Gift Cards On Peer-to-Peer (P2P) Exchanges
1. No/Low Trading Fees
No trading fees are often attached to selling gift cards on P2P exchanges. However, the transaction fee is relatively low compared to other platforms, if any are on the exchange.
P2P exchanges do not fix gift card rates on their platforms. Instead, users control gift card rates and payment methods, which buyers and sellers can negotiate.
Therefore, you can decline a deal if unsatisfied with the buyer’s negotiation about your gift card.
2. Security
Most P2P exchanges employ sophisticated security systems to protect every transaction on their platform. The exchange provides a major functionality to attract more users to the platform.
Therefore, selling gift cards on P2P exchanges is safer than selling on social media platforms. However, some warning signs are still to look out for even on P2P platforms. Here’s a list of some of the acts to beware of:
- Beware of buyers that encourage transactions outside the platform.
- Be wary of payment methods like wire transfers.
- Extremely high rates that exceed the normal market rate are very suspicious.
- Beware of unverified accounts with no trading history or reviews whatsoever.
- Be mindful of sellers requesting personal information or gift card codes before payment is confirmed.
- Stay alert for fake payment confirmations or overpayment scams where the person asks for refunds.
- Avoid P2P platforms that don’t use escrow services for secure transactions.
Staying alert to these red flags can help you avoid scams and enjoy safer transactions on P2P exchanges. Ensure you use reputable P2P platforms and report any suspicious activity immediately.
3. Privacy
Creating an account with a P2P exchange is simple and fast. You often do not need to provide much information about yourself before selling your gift cards on the platform.
As such, the exchange upholds your privacy with no Know-Your-Customer (KYC) or Anti-Money Laundering (AML) requirements.
4. Wide Payment Options
Regular gift card trading platforms usually accept bank or wire transfers. But P2P platforms offer more than these payment options by providing other gateways like credit cards, PayPal, gift cards, and cryptocurrency.
Verification Methods Used To Sell Gift Cards On Peer-to-Peer Exchanges
1. Automated Verification
P2P platforms often use gift card issuers or third-party APIs to confirm real-time balances, allowing buyers to verify the card’s actual value. This way, they can ensure it hasn’t been used previously or canceled before completing any transaction.
2. Manual Verification
Certain P2P platforms require sellers to provide proof of purchase, like a receipt or balance screenshot. The platform’s team reviews this to ensure everything checks out. This adds an extra layer of security; however, it is slower than the automated verification process.
3. Escrow Systems
P2P platforms hold the gift card code in escrow until the buyer verifies its balance and validity. Once the validity is confirmed, the seller is paid.
Escrow systems greatly reduce the risk of fraud, as any detection of fraudulent activities results in the cancellation of the transaction.
4. Two-Step Verification
Buyers can be asked to enter the gift card code on the platform’s website or app to confirm the balance before releasing payment. This ensures the card is active and has the advertised value.
5. Barcode or QR Code Scanning
Some peer-to-peer platforms may allow sellers to scan barcodes or QR codes for physical gift cards to verify authenticity and balance.
Nevertheless, this practice is more common for in-person transactions and can sometimes be used by non-P2P platforms.
6. Fraud Detection with AI
Advanced P2P platforms use AI and machine learning to detect suspicious patterns. Some of the patterns are high transaction volumes in short periods or cards linked to stolen credit cards.
7. Customer Support Verification
Some P2P platforms have support teams that can manually verify cards by contacting the card issuers or using internal tools to check the card’s status. This ensures the card wasn’t stolen or hasn’t been used before.
Platforms combine these methods to create a secure environment for buying and selling gift cards, minimizing risks for both buyers and sellers.
Top Peer-to-Peer (P2P) Exchanges To Sell Gift Cards
1. Binance P2P
Binance is the world’s largest cryptocurrency exchange by daily trading volume. You can trade gift cards and crypto on Binance P2P platform as it supports different types of gift cards on this platform.
Now, we are sure you’ve heard of and probably even used Binance. You may even be among the 240 million users of this platform. For good reason, Binance is one of the biggest platforms in the P2P space. Let’s share some of these reasons:
- Binance is one of the few apps that do not charge a fee for P2P transactions. Many users report this to be one of their favourite features.
- The app is also very flexible. It always buyers and sellers to choose their own prices and payment method.
- Binance is accessible even to those in areas with crypto limitations. This is why Femi from Nigeria can still use this app to sell his coins, despite the restrictions.
- Sellers are allowed to create ads on the platform, so buyers always have a variety of options to choose from.
2. Paxful
Paxful is another P2P exchange with a global presence. You can sell hundreds of gift cards for cryptocurrency on this platform. Popular gift cards on Paxful are Amazon gift cards, Google Play gift cards, eBay gift cards, AMEX gift card, Walmart gift cards, etc.
This platform currently has 14 million users spread across 140 countries. This is no small feat for a P2P company. One of the reasons why it is this popular is it’s flexible payment options.
People who live in areas plagued with limited banking infrastructure are quite bullish on Paxful’s flexibility.
However, the app is also known for its high fees. Andy from Burundi, and Gbenga from Nigeria have complained about how the high fees have discouraged them from using the platform.
There is a 3% trading fee for all types of gift cards (except iTunes and Google Play) and a 5% trading fee for iTunes and Google Play gift cards.
Paxful also collects a 1% seller fee. This is why Gbenga, who sells gift cards, does not regularly conduct business on the app.
3. Coincola
Users can sell various gift cards on Coincola for Bitcoin. They can meet buyers around their location and sell gift cards like Apple gift cards, Spotify gift cards, and Netflix gift cards.
Unlike Paxful, Coincola charges a 0.7% fee. But Coincola charges both buyers, and sellers for each completed transaction.
However, this app also features some major pros. Let’s list a few:
- Coincola has escrow, and dispute resolution systems. This helps them ensure that every single transaction made on the platform is secure. And their customers are satisfied.
- This P2P platform also supports a vast array of payment options, just like the other two on this list.
- Coincola has a user-friendly interface. So, both first-timers and newbies have little to no problem using the app.
How To Sell Gift Cards On Peer-to-Peer (P2P) Exchanges
There are many gift card trading platforms to sell your card, but here are the steps to sell your gift cards on P2P exchanges.
Step 1: Create An Account
- Create an account or log into your exchange account as a registered user
- Choose a strong password and enable two-factor authentication (2FA) for added security
Step 2: Choose The Right Merchant
There are many merchants available on the preferred P2P exchange. The merchant connects you (the seller) with gift card buyers.
- Choose your preferred merchant and create an account with the merchant to list your gift cards on the exchange
- Add relevant details like the gift card’s face value, expiration date, and other information
Step 3: Engage A Potential Buyer
- Be responsive to inquiries and engage with potential buyers promptly
- Follow the guidelines of the transaction on the exchange when you find a buyer
Step 4: Complete Transaction
The merchant will facilitate the transaction once you (the seller) have found a buyer.
This will be in line with the rules and guidelines of the exchange. Payment will be made into your exchange wallet.
An Alternative To Sell Gift Cards On P2P Exchanges
You can sell gift cards on Prestmit, an over-the-counter digital trading platform.
Selling gift cards on Prestmit is easy, safe, and instant – making it one of the best gift card trading platforms in Nigeria.
Our platform lets you sell gift cards from Amazon, Steam, Apple, Google Play, AMEX, Sephora, Shoprite, etc.
How To Sell Gift Cards On Prestmit
The following are the simple steps to buy gift cards on Prestmit:
- Download the Prestmit app on Google Play Store or Apple Store
- Create a Prestmit account and log in
- Click on “Buy & sell gift cards”
- Click on “Sell gift cards”
- Choose your preferred payment. This can be fiat currencies (naira or cedi) and cryptocurrency.
- Choose your gift card category
- Enter the amount of the card
- Upload the image of the gift card or enter the code of the card in the comment section
- Click on “Proceed”
- You will immediately receive payment in your Prestmit wallet, which you can choose to withdraw into your bank account
Frequently Asked Questions (FAQs)
Is Selling Gift Cards On P2P Exchanges Safe?
You can safely sell your gift cards on P2P exchanges, but this does not mean you are safe and secure from scams and fraud.
When selling gift cards, you can be deemed safe if you take the necessary precautionary measures on your preferred P2P exchange.
How Do I Sell My Gift Card For Cryptocurrency?
You can do some research on digital exchanges on which you can sell your gift card for cryptocurrency.
Then, you must create an account with the platform to sell your gift cards there. Choose cryptocurrency as your payment method and provide a crypto wallet to receive it.
For instance, you can easily sell your gift card for cryptocurrency on Prestmit, and payment is instant on the platform.
Conclusion
We can not overemphasize the importance and relevance of gift cards to digital trading. This is why there are new entrants to the gift market every day. It upholds the potential of this digital asset.
However, knowing where and how to sell your gift cards is important if you are planning to do so. While there are peer-to-peer (P2P) exchanges on which you can sell your gift cards, you can also sell your gift cards on a reputable OTC platform like Prestmit.
