Reselling gift cards and buying pre-owned gift cards is now common practice, especially during gift-giving holidays. If you want to sell your unused gift cards, trade or buy pre-owned gift cards, several companies will facilitate this process for you.

One Texas-based gift card marketplace, Cardpool, LLC, currently has an “F” rating due to 2,187 complaints filed against the company in the last three years and failure to eliminate the pattern of complaints and unresolved complaints. Although Cardpool, LLC, has been responsive to concerns, complaints originate from all 50 states, including at least 12 in Indiana.

Complaints against Cardpool, LLC, allege failure to issue payment in a timely manner after gift card was submitted and confirmed received by business, or non-payment for cards sold. Additional complaints allege gift cards purchased from the website had a zero balance or the gift cards rejected from being purchased were returned with a zero balance.

One Hammond man sold a $400 Ticketmaster gift card to Cardpool, LLC. He told the BBB that he received a confirmation email informing him that he’d be receiving a payment within three days, but he never received the money.

“I was to receive an Amazon gift card with a $313 balance,” he reported. “I have sent two emails and received two generic email responses.”

If you choose to patronize a company that provides this service, Better Business Bureau warns customers to be cautious.

“There are so many potential pitfalls if customers are not careful what company they choose,” said Marjorie Stephens, President and CEO of BBB Serving Northern Indiana. “When a gift card is not new and not purchased directly from the retailer itself, you also run the risk of not receiving what you bargained for.”

Use BBB’s tips to reduce your chance for risk when purchasing from a gift card reseller:

• Make sure to research the business before you buy, sell or trade. Visit BBB.org and find out the company’s rating. Read the complaints of any online gift card reseller that you may be considering.
• Make sure that the company is responsive if things go wrong and has easy-to-find contact information.
• Make sure that you understand what the business’ policy is regarding refunds.
• Use a payment method that will allow you to dispute the charges, if you believe you have become the victim of fraud.
• Immediately check the balance and any passwords or PINs of any cards that you purchase.
• Once verified, use the gift cards quickly to make certain that they continue to function properly.
• If problems arise, contact BBB at bbb.org/northernindiana to file a complaint.

Consumers are encouraged to report scams to BBB’s ScamTracker at BBB.org.ScamTracker. Their story could help others avoid being a victim of a scam.