To combat money laundering, many jurisdictions have implemented "Know Your Customer" (KYC) requirements for gift card resellers. In the U.S., the and various state-level pawnshop laws require high-volume resellers to collect identification, limiting the anonymity that once characterized the trade. Conclusion
Abstract
The "cash for gift cards" industry is frequently targeted by illicit actors due to the semi-anonymous nature of the transactions: we buy gift cards for cash
Gift cards are the most requested holiday gift globally, yet billions of dollars in value go unspent annually—a phenomenon known as "breakage." This untapped liquidity has birthed a robust secondary market. Platforms ranging from automated kiosks (e.g., ecoATM/Gazelle) to peer-to-peer exchanges (e.g., Raise, CardCash) allow consumers to convert restricted store credit into unrestricted legal tender. Platforms ranging from automated kiosks (e
Criminals purchase merchandise with stolen credit cards, return the items for store credit (gift cards), and then sell those cards for "clean" cash. Platforms ranging from automated kiosks (e.g.