ABC Gift Cards started locally in the tri-state area in the spring of 2006. Two entrepreneurs realized the growing need for a marketplace where people can buy, sell, and trade their gift cards. Now, with a large dedicated staff and with many local kiosk locations, ABC Gift Cards, headquartered in East Windsor, NJ is the leading online marketplace offering the largest pool of discounted gift cards to choose from.
This realization was sparked by an article that appeared in The New York Times in December of 2005. The article described how many people, troubled by the rising economic difficulties and the rising cost of living, discovered a way to save hundreds of dollars a year.
Gift cards are among this year's most popular presents, generating about $97 billion in 2007, well above sales of $83 billion in 2006, according to the The Tower Group, an independent research firm, cited by The New York Times.
Still, roughly 8.5 percent (i.e. $8.2 billion in 2007) of the dollars on those cards goes unspent.
In response, ABC Gift Cards realized the major need for a vibrant, secure secondary market to buy, sell, and trade gift cards.
A. For buyers, the site presents an opportunity to pick up gift cards at savings up to 30 percent. The cards can then be given to friends and family or redeemed for store merchandise. This provides an easy opportunity to fight the rising costs of living and save thousands of dollars annually.
B. For sellers, this is a quick and convenient way to get cash.
C. For traders, this can be an easy way to exchange a gift card for one from a store they prefer without the well-meaning giver ever knowing.
For merchants, such a secondary market is a blessing as well. When a company sells a gift card, it initially records a liability on its balance sheet for its obligation to the card's holder. The liability is erased and revenue is recorded when the card is used or expires. In light of the government’s intervention to prevent expiration dates on gift cards, complications arise when a card is sold and the holder fails to use the entire balance. That could leave a retailer reporting a liability on its books for years.
While there are other outlets to buy and trade gift cards, security is a top concern. Although, the bulk of these Web sites are legitimate, the secondary gift card market is still a nascent business. Despite a range of policies and protections, a transaction is only as safe as its participants. And there are still real concerns about stolen merchandise and fraud.
At ABC Gift Cards, we pride ourselves for implementing high standards of security, where buyers and traders can feel a total sense of protection. We stand behind our cards, and have established many security measures to identify fraudulent sellers. Additionally, we have an excellent relationship with many of the national retailers who work together with us and verify the authenticity and value of the cards.
Unlike other sites, all transactions at ABC Gift Cards are done directly with us. There are no middlemen nor unknown third parties. We buy all the cards we sell, verify them extensively, and then sell or trade them to our customers at a discounted price.
At ABC Gift Cards, you can be sure that you will have the opportunity to save thousands of dollars a year and have the comfort of secure transactions.