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Trading Places: Parsing the Benefits and Risks of US Online Merchant Gift Card Trading Posts

Published by: TowerGroup

Published: Feb. 7, 2005 - 6 Pages


Table of Contents


TowerGroup Take-Aways




Report Coverage




Background

How Online Gift Card Auctions Function

Leading Players in the Online Gift Card Trading Post Space


Exhibit 1: Leading Services in the US Online Gift Card Trading Post Market (2004)




Potential Pitfalls: Resale Limitations, Fraud, and Money Laundering

Limitations on Resale

Fraud

Money Laundering




Summary

Abstract

This TowerGroup Research Note reviews the rise of gift card trading sites and considers their (still-small) role in the gift card market; recommends a cooperative approach among merchants, vendors, and these sites; and discusses the potential fulfillment, pricing and money laundering issues that a secondary gift card aftermarket may introduce.

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