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  1. #1
    Newbie
    Join Date
    August 10th, 2007
    Posts
    3
    Gift Card Commissions????
    I was shocked that Walmart doesn't pay out on their prepaid cards. Those are really high margin businesses. Do any major retailers pay commissions on their gift cards?

  2. #2
    Newbie
    Join Date
    March 22nd, 2006
    Posts
    35
    Why is this shocking to you?

    From a business and merchant perspective it makes sense to NOT pay commission what is basically a currency exchange.

    For example, People would buy a Walmart GC for themselves valued at 100.00 and get it for 95.00 or 90.00. Walmart is losing 5-10.00 in merchandise on each sale.

  3. #3
    Merchant & ABW Ambassador
    Join Date
    May 31st, 2006
    Location
    Houston TX
    Posts
    4,731

  4. #4
    Newbie
    Join Date
    August 10th, 2007
    Posts
    3
    There are 3 HUGE reasons why they should. 1. They get money up front on purchases that happen in the future. That makes them a bank that doesn't pay interest so they earn on that money (gift cheques are Amex's most profitable business). 2. They also gaurantee the people will shop there, thus locking in revenue. 3. There is a thing called breakage. People lose cards, don't use the whole thing etc. so on average the spend is far less than 100 on a $100 card.

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