Over the past month or so, ebay has changed numerous rules that make flipping gift cards on ebay a little harder, but the good news is that it isn’t dead yet. First, ebay added back the limit on using ebay gift cards by restricting everyone to $2,000 per rolling 60 days. There was a brief period while ebay gift cards were transitioned over from PayPal to ebay where you could go wild and use as much as possible, but it probably isn’t a big surprise that the old rule (although a little different) returned. Next, the terms and conditions on many popular shopping portals began restricting cash back on the purchase of ANY kind of gift cards rather than the older restriction that only applied to ebay branded gift cards. Finally, ebay dropped a bigger hammer down without any warning and restricted the use of ebay gift cards for purchasing any kind of gift card! Luckily they have turned this rule off until October 13th to allow people to empty out their gift cards, so be sure to burn any you are still holding on to soon.
If you have no idea what I’m talking about, I recommend checking out my Intro Post on Gift Card Arbitrage and my other post specific to Ebay Gift Card Arbitrage.
Ebay definitely seems to be cracking down on gift card reselling, but I would guess that most of it has to do with fraud rather than simply trying to limit people like us. Despite the negative changes, there is still some opportunity to be had, especially if your main goal is increasing credit card spend for little or no cost. In fact, on my ebay gc arbitrage tool today, it’s possible to generate over $1,500 worth of spend for less than $10 without even counting the credit card points, miles, or cashback!
I’ll break down the impact of the new restrictions below and go into more detail on the $1,500 spend example I just mentioned.