Question

How do stores make money by selling other stores' gift cards?

How do stores make money by selling other stores' gift cards? And I don't mean like Walmart sells walmart gift cards, so then they might not be used. I mean how does Walmart make money by selling Target gift cards, or iTunes gift cards, etc.

4 years ago - 3 answers

Best Answer

Chosen by Asker

They don't pay full price. Usually they make a dollar or 2 on each one.

4 years ago

Other Answers

They are paid a fee by their credit card processor which is the company that activates the cards.

by IMATEK - 4 years ago

Either the buyer gets charged a small service fee (say $1 or $2 per card) or the retailer has a deal with the other store for a commission (say 2% of the sale price of the card).

by Steve D - 4 years ago