Prepaid card distribution company Blackhawk Network is getting to the gift card resale business with its application of Cardpool, a company running a Website that allows cardholders to buy, sell, and exchange gift cards. The deal price was not disclosed.
“Blackhawk Network has always provided consumers with the utmost convenience for making their gift card purchases,” said Bill Tauscher, Chairman and CEO, Blackhawk Network. “We now look forward to extending that convenience to gift card recipients by allowing them to easily get the gift card they want through this exchange.”
Companies like Plastic Jungle have also offered gift card exchanges. So far, card shoppers seem to have embraced the sites, as the site operators have told Mercator they have not had a problem meeting demand on either the buy or sell side.
Retailers have struggled with what they think of the sites. Some worry about the discounting of their cards and others are concerned about brand damage, but because transactions are strictly between cardholders and the site, retailers have as little say on the issue as they do if a customer wants to sell any other merchandise they bought at a store. Still some retailers believe there is an opportunity to find new customers through these portals and are trying to develop a strategy to do just that.
