Gift cards are one of the only products in retail that regularly sell for less than their face value — and the vast majority of shoppers never think to buy them before they go shopping. Gift card arbitrage is the practice of purchasing a discounted gift card and spending it at face value, pocketing the difference as instant savings on purchases you were already going to make. A $100 Target gift card bought for $90 is a guaranteed 10% discount on everything in your cart, applied before any coupons, sales, or cashback. No apps to scan. No codes to hunt down. No timing required.

This guide explains exactly how gift card arbitrage works, where to buy discounted cards safely, which retailers offer the best discounts, and how to layer gift card savings on top of everything else you’re already doing.

What Is Gift Card Arbitrage — and Why It Works

Gift card arbitrage sounds more technical than it is. The concept is simple: you buy a gift card at a price below its face value, spend it at face value, and keep the difference.

A $50 Walmart gift card purchased for $44 on a secondary marketplace means you’ve pre-paid $44 for $50 worth of goods — an automatic 12% discount before your cart is even assembled. Do that across your regular grocery run, home improvement projects, and restaurant meals, and the savings accumulate without changing a single shopping behavior.

Why discounted gift cards exist: When someone receives a gift card to a store they don’t shop at, they have limited options — keep it and eventually spend it, regift it, or sell it. Secondary gift card marketplaces like Raise and CardCash buy these unwanted cards at a discount (say, $44 for a $50 card), then resell them to shoppers like you at a slight markup above what they paid but still below face value (you pay $46, they keep $2). Everyone in the chain gets what they want: the seller converts an unused card to cash, the marketplace earns a margin, and you get a genuine discount.

This is entirely legal, widely practiced, and explicitly permitted by every major retailer’s gift card terms. It’s not a loophole — it’s a functioning secondary market that’s been operating for over a decade.

Where to Buy Discounted Gift Cards

Raise

Typical discount range: 2–15% below face value depending on retailer Payment: Credit card, debit card, PayPal Delivery: Instant digital delivery for most cards; physical cards for some Buyer guarantee: 1 year on digital cards, 100 days on physical cards

Raise is the largest dedicated gift card marketplace in the U.S. and the right starting point for most shoppers. Their inventory is broad — thousands of retailers represented — and the 1-year buyer guarantee on digital cards is the strongest protection in the secondary market. If a card has a lower balance than advertised or has already been used, Raise will refund or replace it.

Watch out: Raise’s prices fluctuate based on supply. A Target card might be 8% off today and 4% off next week. Check rates before each purchase rather than assuming consistency, and compare against other platforms before buying.

CardCash

Typical discount range: 3–15% below face value Payment: Credit card, debit card, PayPal, Bitcoin Delivery: Instant digital for most cards; physical for some Buyer guarantee: 45 days

CardCash has a strong retailer selection and is particularly good for restaurant and entertainment gift cards, where discounts tend to be higher than retail categories. The 45-day buyer guarantee is shorter than Raise’s, which means you should plan to use purchased cards promptly rather than holding them for months.

Watch out: CardCash occasionally shows inventory as available when stock is thin — you may add a card to your cart only to find it’s sold out at checkout. Have a backup plan (Raise or GiftCardGranny) ready if a specific card isn’t available.

GiftCardGranny

Typical discount range: Aggregates across multiple platforms — shows the best available rate for each retailer Payment: Varies by underlying marketplace Delivery: Varies by underlying marketplace Buyer guarantee: Varies by underlying marketplace

GiftCardGranny isn’t a marketplace itself — it’s an aggregator that pulls current prices from Raise, CardCash, and several other platforms and displays them side by side. If you want a Starbucks gift card at the best available discount right now, GiftCardGranny shows you the lowest price across every major source in one search.

Watch out: Because GiftCardGranny links out to third-party platforms, your transaction happens at the source marketplace, not on GiftCardGranny. Buyer protection terms are those of the platform you’re redirected to — confirm them before purchasing.

Sam’s Club and Costco

Typical discount range: 5–10% on select partner retailer gift cards Payment: Member payment methods Delivery: In-warehouse (physical) or online (digital for select cards) Buyer guarantee: Covered under warehouse return policy

Both Sam’s Club and Costco sell gift cards for select restaurants, gas stations, and retailers at discounts of 5–10% — purchased new from the issuing retailer, not on a secondary market. This eliminates the balance-verification concern entirely: the cards are factory-sealed and guaranteed full value. The selection is limited compared to Raise or CardCash, but the zero-risk profile makes them the best option when they carry what you need.

Watch out: Warehouse club gift card inventory varies by location and changes seasonally. Check the current selection online or in-store before building a purchase plan around a specific card being available.

Credit Card Portals

Typical discount range: 5–15% in points or credits Payment: Points or portal credits Delivery: Digital codes delivered to your account Buyer guarantee: Card issuer dispute protection

Chase Ultimate Rewards, American Express Membership Rewards, and Citi ThankYou portals all offer gift cards as a redemption option — and some offer gift cards at a discount when purchased with points (e.g., a $50 gift card for 4,000 points instead of 5,000). If you’re sitting on a points balance, converting it to a discounted gift card at a retailer you frequent is often a better redemption than cash back at 1 cent per point.

Watch out: Point valuations vary. Before using points on a gift card, verify that the effective cents-per-point rate beats what you’d get redeeming for travel or cash. Use points for gift cards only when the math clearly favors it.

The Retailers Where Gift Card Arbitrage Works Best

Target

Typical discount: 5–10% on Raise and CardCash

Target gift cards are among the most consistently available on secondary marketplaces, which keeps prices competitive. The real advantage at Target is stacking: a discounted gift card used during a Target Circle sale gives you the gift card discount on top of the promotional price. Target Circle doesn’t restrict gift card payment, so both discounts apply simultaneously.

Tip: Buy Target gift cards in denominations that match your typical monthly Target spend — $50 or $100 — so you’re spending at face value with no leftover balance sitting unused.

Walmart

Typical discount: 3–8%

Walmart gift card discounts are more modest than Target’s, but Walmart’s sheer purchase volume across groceries, household goods, and general merchandise makes even a 5% discount meaningful over time. A household spending $400/month at Walmart saves $240/year by consistently buying gift cards at 5% off before each shopping trip.

Tip: Walmart’s Ibotta integration still applies when you pay with a Walmart gift card — you can earn manufacturer rebates on top of the gift card discount without conflict.

Amazon

Typical discount: 2–5%

Amazon gift card discounts are smaller than other categories because Amazon gift cards are broadly desirable and hold their value on secondary markets. Still, at 3% off on a household that runs $500/month through Amazon, that’s $180/year for zero additional effort. Amazon occasionally offers bonus credit on gift card loads directly — watch for “get $10 when you load $50” promotions that compound with marketplace discounts.

Tip: Amazon restricts gift card payment on some third-party marketplace purchases. Verify that your intended purchase is sold directly by Amazon before loading gift card funds.

Home Depot and Lowe’s

Typical discount: 5–10%

Home improvement purchases are high-value and infrequent — exactly the category where a 7% gift card discount has the most impact. A $500 appliance or a $300 lumber order represents $21–$35 in savings just from pre-purchasing a discounted gift card. Both Home Depot and Lowe’s accept gift cards without restriction on most purchases.

Tip: For large renovation projects, buy gift cards incrementally from Raise as you plan each phase of the work. Buying a $500 card all at once works, but buying five $100 cards across different purchases hedges against balance or delivery issues.

Restaurants and Dining

Typical discount: 10–20% — the highest-yield category in gift card arbitrage

Restaurant gift cards consistently carry the steepest discounts on secondary marketplaces because restaurants are less universally desirable than retail chains. A $50 Chili’s or Olive Garden gift card at 15% off is $42.50 for $50 of dining — the equivalent of a standing discount on every meal. For families who eat out regularly, restaurant gift card arbitrage alone can save $300–$600/year.

Tip: Stick to restaurant chains you already frequent rather than chasing the steepest discount at an unfamiliar place. A 20% discount at a restaurant you’d never choose otherwise isn’t savings — it’s spending.

Gas Stations

Typical discount: 3–8% at major chains (Shell, BP, ExxonMobil)

Gas is a non-discretionary, high-frequency purchase — you’re buying it regardless. A consistent 5% discount via gift cards on a household spending $200/month on gas is $120/year for a purchase category where no other coupons or promotions typically apply.

Tip: Warehouse clubs (Costco, Sam’s Club) often sell gas gift cards directly, eliminating secondary market risk. Their in-house fuel discounts can also be layered on top for members who fill up at the warehouse pump.

How to Stack Gift Card Arbitrage With Other Discounts

Gift card arbitrage isn’t just a standalone discount — it’s a base layer that stacks cleanly with most other savings methods.

A concrete four-layer example on a $150 Target purchase:

  • Layer 1 — Discounted gift card: Buy a $150 Target gift card for $135 on Raise (10% off) — immediate $15 savings
  • Layer 2 — Target Circle sale: The items you’re buying are 15% off in the current Target Circle event — saves another $20.25 on the $135 effective cost
  • Layer 3 — Manufacturer coupon: An Ibotta offer gives $3 back on a qualifying product in your cart
  • Layer 4 — Credit card rewards: Your RedCard (5% back at Target) earns 5% on the transaction — another $5.74 back

Effective cost on a $150 purchase: approximately $91 — 39% off total.

The gift card is the foundation that no other single discount can touch — it applies before you even enter the store.

What to watch out for: A small number of retailers disable digital coupon codes or promo code fields when the cart is paid entirely with a gift card balance. This is uncommon at major chains but worth testing on a small purchase before counting on the stack. For the complete framework on building discount layers, see the How to Stack Coupons Like a Pro guide. And for earning cashback on top of a gift card purchase, the How Cashback Portals Work guide covers which portals track cashback when gift cards are involved.

Risks to Know Before You Start

Cards with a lower balance than advertised. This is the primary risk in secondary markets and the reason buyer guarantees exist. On Raise (1-year guarantee) and CardCash (45-day guarantee), if a card shows $50 but only has $32 on it, the platform will refund or replace it. Always check a card’s balance immediately after purchase — every major retailer’s balance check is available online or by phone.

Cards that have already been fully used. Rare on reputable platforms but possible. Same resolution: buyer guarantee covers it. Stick to Raise, CardCash, and warehouse clubs, and this risk is nearly zero.

Expiration of the marketplace guarantee if you wait. A card bought on CardCash with a 45-day guarantee that sits unused for three months is no longer covered if a problem surfaces. Use purchased gift cards promptly — don’t stockpile them for later.

Retailer restrictions on certain purchase types. Some retailers prohibit gift card payment on specific categories: alcohol at grocery chains, certain financial products, or online-only items at some retailers. These restrictions are noted in the retailer’s gift card terms and are category-specific — not a blanket limitation.

Buying from unverified sellers on informal platforms. eBay, Facebook Marketplace, and Craigslist gift card listings have no buyer protection equivalent to Raise or CardCash. A stolen or drained card purchased from an individual seller is typically unrecoverable. Stick to dedicated marketplaces with formal guarantee programs. The discount at an informal platform is never worth the risk.

One Habit, Permanent Savings

Gift card arbitrage requires no behavior change at the register. You pay with a card instead of a credit card — that’s the entire difference. The savings are built in before you arrive. For anyone who shops regularly at Target, Walmart, Home Depot, or their usual restaurant rotation, adding gift card arbitrage to the routine takes fifteen minutes to set up and saves hundreds of dollars a year.

Before your next significant purchase at any major retailer, check CouponCommando’s merchant pages for current stacking notes and gift card compatibility. If you want to understand how price matching and return policies interact with gift card purchases — particularly whether paying with a gift card affects your adjustment eligibility — the Price Match Playbook and Retail Return Policies Compared guides have the answers.