If I purchase £50 GBP giftcard, then my friend wants to swap that in for 80% of the value, they get £40 to spend elsewhere. Now if CardPool sell the card back to the company for £45 they're both splitting the remaining £10. CardPool don't need the customer buyers in order to buy cards. They could presumably also deal with the companies to buy cards direct at a discount (as if they were an affiliate).
CardPool then have a few options. If they lower the swap value of company A then I'm more likely to use my money there. This can actually be bad for company A as whilst they can negotiate a potentially larger amount of the difference of a buy-back they also risk the customer keeping the card and actually using it. Which is a transactional loss for them but a potential win if they can gain repeat custom.
It's really quite interesting to consider the back room deals that might go on over this.
If I purchase £50 GBP giftcard, then my friend wants to swap that in for 80% of the value, they get £40 to spend elsewhere. Now if CardPool sell the card back to the company for £45 they're both splitting the remaining £10. CardPool don't need the customer buyers in order to buy cards. They could presumably also deal with the companies to buy cards direct at a discount (as if they were an affiliate).
CardPool then have a few options. If they lower the swap value of company A then I'm more likely to use my money there. This can actually be bad for company A as whilst they can negotiate a potentially larger amount of the difference of a buy-back they also risk the customer keeping the card and actually using it. Which is a transactional loss for them but a potential win if they can gain repeat custom.
It's really quite interesting to consider the back room deals that might go on over this.