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66 votes

Sugar daddy prepaid card scam

Yes it is. You might want to check out some of the other questions on this site tagged scams or sugar-daddy. Cut off contact with this person and do not have anything further to do with them. Almost ...
Vicky's user avatar
  • 24k
39 votes

Amazon gift card scam

Sorry to say, your money is most likely gone for good. You bought the gift cards from the store yourself, in some cases intentionally bypassing the procedures put up by the store to prevent gift card ...
Nosjack's user avatar
  • 8,697
39 votes

Sugar daddy prepaid card scam

HUGE scam. Gigantic scam. Bitcoin is a money transaction that is irreversible. Once sent, it can't be reversed, EVER. Anytime person X sends you money, and then wants money back via an irreversible ...
Harper - Reinstate Monica's user avatar
35 votes

What is the business model of discounted gift cards?

Generates cash before any expense is taken on COGS (negative leadtime is heaven, and cash is, as we know, king) It is a way of segmentation of customers - you appear as a good choice both for non-...
Stian's user avatar
  • 1,104
35 votes

Why do gas stations charge higher price for credit card purchase while customers can purchase their gift cards from a third party?

It's not completely risk free - what happens if you lose the gift card? In addition, the gas company isn't losing anything - it's the grocery store where you bought the card that eats the 2% merchant ...
D Stanley's user avatar
  • 136k
30 votes

How do websites ban prepaid cards?

The first six digits of a Visa or MasterCard card comprise the Bank Identification Number (BIN) and card type (Visa, M/C, etc), which identifies the issuer, the next 9 digits (when a Visa or M/C) are ...
RiverNet's user avatar
  • 5,380
29 votes

Why do gas stations charge higher price for credit card purchase while customers can purchase their gift cards from a third party?

If you buy a Marathon (or any other brand) gift card, you're giving the merchant cash now. Most people don't spend their gift card immediately so the company gets to use that cash as working capital ...
Justin Cave's user avatar
  • 27.3k
24 votes

Can I dispute a credit card charge for a hacked Vanilla Visa Gift Card?

There were news stories regarding this type of theft in the Washington DC area, as well as other parts of the country. Yes, complain to the place you bought the card. Yes, complain to police. Yes, ...
mhoran_psprep's user avatar
20 votes

Why do gas stations charge higher price for credit card purchase while customers can purchase their gift cards from a third party?

In addition to other reasons, this can be an example of market segmentation: making each customer pay as much as they are willing to. By spending some time going through the gift card route, you ...
jpa's user avatar
  • 1,076
20 votes

Can I dispute a credit card charge for a hacked Vanilla Visa Gift Card?

Reading the comments it is clear that some people misunderstand the question. Can I successfully dispute the CVS charge on my personal credit card that I used to purchase these 4 gift cards? The OP ...
littleadv's user avatar
  • 176k
19 votes

What is the business model of discounted gift cards?

In economics, any prepaid amount is a loan. In fact, a gift card is arguably a cash advanced loan derivative but it's not regulated. Many issuers are gaming the system to take advantage of this ...
mootmoot's user avatar
  • 4,183
16 votes

How should I record a gift card?

When you receive the $50 gift card: credit $50 to an income account, and debit $50 to an asset account (e.g. "gift cards"). i.e. increase the income account by $50, and increase the asset ...
Flux's user avatar
  • 17.1k
16 votes

Can I dispute a credit card charge for a hacked Vanilla Visa Gift Card?

No, you can not dispute the charge. I'd try going back to that CVS, talking to the manager (who is almost certainly not the criminal, they have too much to lose), letting them know they have a ...
keshlam's user avatar
  • 47.6k
14 votes

What is the business model of discounted gift cards?

Speaking to a restaurant owner I learned that, for his business, only about 80% of the amount sold in gift cards ever gets redeemed (your point #3). This means that he makes a much larger margin on ...
Aubreal's user avatar
  • 1,052
13 votes

What is the business model of discounted gift cards?

In addition to the many valid points made in other answers, there is another important point: A store-issued gift card gives the merchant control over more of the payment processing cycle. This ...
dwizum's user avatar
  • 17k
13 votes

Amazon gift card scam

Unfortunately, you fell for the scam, bought gift cards and (presumably) gave them away, so most likely neither the merchant or credit card company are obligated to help. Merchants are trained to ...
Hart CO's user avatar
  • 70.5k
12 votes
Accepted

I accidentally charged more than the amount on a prepaid card on amazon and it didn't get declined

The card will not be charged until the order is prepared. Once Amazon attempts to charge the card, it will be declined. If there are no other payment options in your account the package will not be ...
Caleb's user avatar
  • 352
11 votes

Can you buy gift cards at grocery store to receive a higher reward rate?

In a similar situation I wrote about How I Made $4,000+ on a Cash Back Credit Card Offer. The total was actually $4550, and was from an insane offer from a new credit card my bank advertised. 10% cash ...
JTP - Apologise to Monica's user avatar
11 votes
Accepted

Can you buy gift cards at grocery store to receive a higher reward rate?

If you go to a grocery store and purchase retail gift cards along with other products, and you pay with a credit card, your credit card company generally does not know what you spent the money on; ...
Ben Miller's user avatar
  • 116k
11 votes
Accepted

Can a victim of a gift card scam dispute Credit Card transaction?

I Work as a dispute specialist for a credit card company. I handle cases like these all the time and it's a terrible thing to have seen happen to people. We advise cardmembers to look into sources ...
HAYDEN KELLY's user avatar
11 votes

Mandela coins and iTunes gift cards — is this a scam?

The words "iTunes gift card" and "DHL" are enough red flags. Yes, this is a scam. Cut off contact, block them and move along. Also, a quick google shows that Mandela coins are not ...
Vicky's user avatar
  • 24k
11 votes

Why do gas stations charge higher price for credit card purchase while customers can purchase their gift cards from a third party?

If everyone only purchased the gift card, and then used it up completely at the pump, then the gas station would not benefit from this. If every one of those people would have paid the extra CC fee ...
TTT's user avatar
  • 47.2k
10 votes

Lowe's won't accept their store credit - any recourse?

This seems like it should be an easy fix. If the license doesn't match due to a typing error, then presumably most of the information would be correct, or close to correct, so viewing what they have ...
TTT's user avatar
  • 47.2k
8 votes

Can a victim of a gift card scam dispute Credit Card transaction?

He can dispute the charges, but I don't think he has a strong case to, so I'd expect the dispute to resolved in the merchant's favor. In my view (this is subjective of course), the fraud occurred ...
Cody's user avatar
  • 1,157
8 votes
Accepted

Is a purchase still a Schedule C expense if its paid using a gift card?

Method of payment should have no bearing on whether something is a qualified business expense or not - it may make auditing more challenging, but it's not required that expenses come from a "...
D Stanley's user avatar
  • 136k
8 votes
Accepted

What will happen if one books a hotel with a gift card?

The hotels and rental car companies usually put an authorization hold for an amount enough to cover what they think would be the expected expense. Some do it at the reservation time, some do it when ...
littleadv's user avatar
  • 176k
7 votes

Tell gift card giver money was stolen?

There could be any number of scenarios that happened. Here are some possibilities: Gift giver purchased card, but it was somehow messed up during activation. (Not likely, in my opinion.) Gift giver ...
Ben Miller's user avatar
  • 116k
7 votes

What is the business model of discounted gift cards?

Another reason that shops (especially restaurants) like gift cards is that many people don't think of a gift card as real money, and so will often spend more when using them. Say a customer has a $50 ...
spuck's user avatar
  • 853
7 votes

Amazon gift card scam

Question is - can I get money back? Most likely not (see the more extensive answer from Nosjack) Two important warnings: 1. If you have been scammed successfully, the scammer(s) will (most likely) ...
swad's user avatar
  • 171
6 votes

Why do gas stations charge higher price for credit card purchase while customers can purchase their gift cards from a third party?

A large portion of money spent on gift cards is not used A quick google search of "what percentage of gift cards are not used?" shows from between 3% to 20% of gift card balances are never ...
Michael Richardson's user avatar

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