A Warning about electronic gift cards and gift card sites!!

[mickeyhereicome]

I originally posted my story/issue on the Gift card thread, but I thought this might deserve its own.

I purchased $1000+ electronic Target cards for Cardpool on Feb.23 and these were emailed to me the same day. I checked them all on my Target app to make sure they were loaded. I used one $50 card to make a purchase off Target.com.

On Feb 29, I went to use the rest, but they all had a zero balance except one. When I looked up all the codes, they had all been spent in a Target store in Virginia, I live in MA.

I naturally assumed Cardpool had something to do with it. Either the original owner used them or resold them, somehow Cardpool resold them. I wasn't sure, but that is where I started. I emailed their customer service email address, I tried calling the 800 number I found online. I received an email response the next day asking for me info. I sent my follow up email and never got a reply. I sent a few more emails, no reply. On March 4 I filled out a BBB complaint, after reading some of the complaints I felt this might help. Cardpool had until March 21 to respond. Yesterday the finally sent me an email.

First they stated they couldn't refund me because the cards were used while in my possession. When I said I didn't use them and live in a different state and suggested that the original owner might have used them. They replied with an apology that this happened and that all the card were used on the same day at the same location, in my possession. I replied again asking about their terms of use and what protects the buyer. This is when they finally mentioned (should have lead with this in my opinion) that all the cards were acquired from different people.

So now I got really confused and conspiracy like. So many thoughts, did someone hack my email? Did someone hack their email? Could an employee of cardpool have taken the email? Does it have something to do with my target account? Like I said, all over the place. I don't feel it has to do with my email, that means someone knows enough to watch me and find my email of codes within my email, not possible.

However, here is the very interesting part. If you google "my electronic target gift cards were stolen", there are a ton of complaints. One woman even said she does the churning of target to Disney cards. She had a physical target gift card that she purchased from target just to add her discounted electronic ones to that main card. That main card was on her target.com account and somehow it was stolen and used in a different state. She fought target and they sided in her favor.

I called target and they opening an investigation. This all happened last night. The gift card specialist returned my call but said because I do not have a receipt and purchased the cards from cardpool, they have no responsibility. They also, mentioned that they do not see the cards linked to my account. I am filing an investigation with my local PD, but my cop friend told me it will likely fall on deaf ears, especially because they were used in a different state.

So if you take anything away, read up on the people who say their target electronic cards were stolen out of their target account. I was shocked. They mention that target doesn't have very good security on them. Read up! For me, even with this loss, I am still ahead on my saving (my way to not be completely depressed about it), but I will not be doing the gift cards anymore! To much of a risk, to much fraud. I used to think it was only a risk with buying from the discount sites and having to use them ASAP, now I am not even sure about targets cards! If you happen to know anything I didn't think of to get my money back, please let me know!

 

[disfanforlife]

How awful for you. I don't have any feedback other to say that I am very sorry that this happened to you.
My own experience with target gift cards has only been buying them from GCM on eBay, in grocery store or from target itself.

 

[smiths02]

Sorry for your situation. Thank you for your story. I was not interested in the churning too much before (I would buy the Target black Friday deal and use those for Disney cards), but mostly the hassle to convert in the first place, the having my money tied up in gift cards, and the having to clear my account at the hotel with multiple gift cards was a pain. Since we can combine Disney gift cards, I had been more interested in this, but I think I'll stay away from bothering with it. I'll just use my Disney rewards Visa points and any other gift cards that people actually give me for a gift.

 

[kool_kat]

I'm so sorry to hear about this! What really stinks is everyone is passing off responsibility. It does sound like there was a breach on Target's end...I quit using the 3rd party resellers when people started getting banned as resellers and here is another good reason. No receipts so no proof of purchase / protection from Target. I also quit using the app once you could no longer combine. I have read several stories of cards on the app being drained which is ridiculous with a company the size of Target.

I'm so glad you are still ahead even with this loss so you aren't absorbing the loss with "real money" but I know it still stings. This experience here is why so many of us don't want a "dummy's guide to churning" post because people will read that and think "easy, free money". The truth is there are real risks. You just ran into a $1,000 one which for some people would force them to cancel a trip. By forcing people to read pages of the gift card thread they run into these posts and see some of the risks. Thank you for posting and updating us.

 

[disneydacey]

That is awful. I try to only load my cards into target at the same time I am going to use them. Hopefully that will prevent this happening to me. So sorry

 

[Marionnette]

I originally posted my story/issue on the Gift card thread, but I thought this might deserve its own.

I purchased $1000+ electronic Target cards for Cardpool on Feb.23 and these were emailed to me the same day. I checked them all on my Target app to make sure they were loaded. I used one $50 card to make a purchase off Target.com.

On Feb 29, I went to use the rest, but they all had a zero balance except one. When I looked up all the codes, they had all been spent in a Target store in Virginia, I live in MA.

I naturally assumed Cardpool had something to do with it. Either the original owner used them or resold them, somehow Cardpool resold them. I wasn't sure, but that is where I started. I emailed their customer service email address, I tried calling the 800 number I found online. I received an email response the next day asking for me info. I sent my follow up email and never got a reply. I sent a few more emails, no reply. On March 4 I filled out a BBB complaint, after reading some of the complaints I felt this might help. Cardpool had until March 21 to respond. Yesterday the finally sent me an email.

First they stated they couldn't refund me because the cards were used while in my possession. When I said I didn't use them and live in a different state and suggested that the original owner might have used them. They replied with an apology that this happened and that all the card were used on the same day at the same location, in my possession. I replied again asking about their terms of use and what protects the buyer. This is when they finally mentioned (should have lead with this in my opinion) that all the cards were acquired from different people.

So now I got really confused and conspiracy like. So many thoughts, did someone hack my email? Did someone hack their email? Could an employee of cardpool have taken the email? Does it have something to do with my target account? Like I said, all over the place. I don't feel it has to do with my email, that means someone knows enough to watch me and find my email of codes within my email, not possible.

However, here is the very interesting part. If you google "my electronic target gift cards were stolen", there are a ton of complaints. One woman even said she does the churning of target to Disney cards. She had a physical target gift card that she purchased from target just to add her discounted electronic ones to that main card. That main card was on her target.com account and somehow it was stolen and used in a different state. She fought target and they sided in her favor.

I called target and they opening an investigation. This all happened last night. The gift card specialist returned my call but said because I do not have a receipt and purchased the cards from cardpool, they have no responsibility. They also, mentioned that they do not see the cards linked to my account. I am filing an investigation with my local PD, but my cop friend told me it will likely fall on deaf ears, especially because they were used in a different state.

So if you take anything away, read up on the people who say their target electronic cards were stolen out of their target account. I was shocked. They mention that target doesn't have very good security on them. Read up! For me, even with this loss, I am still ahead on my saving (my way to not be completely depressed about it), but I will not be doing the gift cards anymore! To much of a risk, to much fraud. I used to think it was only a risk with buying from the discount sites and having to use them ASAP, now I am not even sure about targets cards! If you happen to know anything I didn't think of to get my money back, please let me know!

I'm so sorry that this has happened to you. The interesting part here is that the Target GCs were sold by different people but they were drained by the same person. I guess that it's possible that the sellers were all in it together. Or that Target's database is still being hacked.

OP, if I were you, I would change my login information on my Target .com account and cancel the Target REDCard associated with it or at least have Target issue cards with a new account number. I would cite security concerns out of concern that your online account was hacked and drained of the GCs associated with it.

As for Cardpool, this stands as a good warning for anyone who cares to listen. It appears that their guarantees mean nothing.

I don't know whether doing a chargeback on your CC that you used with Cardpool will get you any satisfaction. It's worth a try. At least you won't be taking cardpool's final word as an end to the discussion. The very worst that your CC company can do is return with a denial of your claim.

 

[ellie05]

I am sorry OP! Did you pay with a credit card? Maybe try disputing the transaction. This actually happen to my sister last year on her birthday. I send her an electronic target card and when she went to use it was drained.

We contacted target and they fix the issue, but I think this was one of the reasons they got rid the app. I wouldn't be surprise if someone hacked you email since they can potentially be targeting emails from card pool, raise, etc.

I hope you recover your money somehow. I ordered over $1000 of target gc at card pool a few days ago, but I went with the physical ones because of what happened to my sister. I am still nervous I will take them to target and combine to different cards as soon as they arrive.

 

[smiths02]

I'm so sorry that this has happened to you. The interesting part here is that the Target GCs were sold by different people but they were drained by the same person. I guess that it's possible that the sellers were all in it together. Or that Target's database is still being hacked.

OP, if I were you, I would change my login information on my Target .com account and cancel the Target REDCard associated with it or at least have Target issue cards with a new account number. I would cite security concerns out of concern that your online account was hacked and drained of the GCs associated with it.

As for Cardpool, this stands as a good warning for anyone who cares to listen. It appears that their guarantees mean nothing.

I don't know whether doing a chargeback on your CC that you used with Cardpool will get you any satisfaction. It's worth a try. At least you won't be taking cardpool's final word as an end to the discussion. The very worst that your CC company can do is return with a denial of your claim.

I would try to contact the credit card company as well, you could also submit the police report to them. (Even though I know the police won't do anything.)
Do you have ID theft insurance? I wonder if they would help at all.

 

[Dakota731]

I'm so glad you are still ahead even with this loss so you aren't absorbing the loss with "real money" but I know it still stings. This experience here is why so many of us don't want a "dummy's guide to churning" post because people will read that and think "easy, free money".

What does this mean? You didn't pay for these credit cards? What is churning?

 

[kool_kat]

What does this mean? You didn't pay for these credit cards? What is churning?

Hop over to the Disney Gift Card Deals thread - that's where churning is discussed and explained. You'll need to read back several pages to get an idea. Basically, the OP had made some additional money from buying gift cards at a discount. So even though she spent real money on this purchase, the money she made covered the loss and she didn't lose any of her original money. It will make sense after you read the Disney Gift Card Deals thread. Hope this helps!

 

[Jadyreen1282]

Yikes. Lesson learned for me.

 

[Bree]

I know that it's of no help to you now, but this could help others.

I NEVER hang onto gift cards from resellers. As soon as I get them I use them right away or purchase new giftcards with those gift cards.

 

[wendow]

I've been done with buying gift cards from resellers for awhile. There are just too many issues happening now.

Also, this is not a reseller's issue but back in December when Target ran their store gift card on sale for 10% off, people on slickdeals and other 'deal' sites reported their monies were drained from their mobile gift card. As far as I know, Target did nothing for them.

OP, thank you for the update to your story. I am so sorry yo have had to deal with this.

 

[Narnia_girl]

OP, I'm so sorry you are dealing with this headache. I hope you can get some satisfactory resolution. So many of us have used resellers in the past to get great deals, and it's just unfortunate that con artists have to ruin it for honest folks.

 

[DisneyStarWisher]

That is awful. I try to only load my cards into target at the same time I am going to use them. Hopefully that will prevent this happening to me. So sorry

I do the same thing. I hope this helps. I have earned some Target gift cards from Swagbucks and HumanaVitality. I am just holding on to them until I'm ready to purchase the Disney GCs on Target's website. I hope this is safe. I have worked too hard to earn them to lose them!

 

[mickeyhereicome]

Thank you for all the support. It does stink. I hope others realize there are real issues. I've been doing this for 4 years. I have been able to take advantage of some pretty good deals. When this first happened I said to myself, "I will only churn if it's through a major site like ebay, local grocery stores, target runs their own sale, no more third party like cardpool". But now the issue was most likely with Target. So nothing seems safe!

That is awful. I try to only load my cards into target at the same time I am going to use them. Hopefully that will prevent this happening to me. So sorry

I know that it's of no help to you now, but this could help others.

I NEVER hang onto gift cards from resellers. As soon as I get them I use them right away or purchase new giftcards with those gift cards.

I do the same thing. I hope this helps. I have earned some Target gift cards from Swagbucks and HumanaVitality. I am just holding on to them until I'm ready to purchase the Disney GCs on Target's website. I hope this is safe. I have worked too hard to earn them to lose them!

I too, usually use right away. This time I happened to wait 5 days. BUT these supposedly were an issue with Target and not cardpool. So even adding them to your Target account, you are not safe. I read another woman's post that changed her third party cards into a physical target card, but because she add it to her target account, it got drained. There are so many possibilities, that's the problem. Hearing about all the compromised Target accounts, I am leaning towards that. However, how is it not possible that an employee at Cardpool sold the email? Who knows!

 

[erij11]

This is awful, so sorry this happened to you, OP. I have $50 in Target giftcards saved to the mobile app that I earned on Swagbucks that I will go use today. I am saving them for Disney and in the past I just keep them all until I've earned what I need and then go buy them all at once. Not anymore. And I'll take the tip from a previous poster not to load them until immediately before using them.

 

[trstno1]

This is really awful, and needs to be bumped up for all of the people who are new to churning (like me). I hope that Target can still find a resolution for you.

 

[MomToOne]

Interesting - Cardpool hypes their "100 day purchase guarantee" but you have to dig into their Terms of Service to see that they don't actually cover electronic gift cards with that guarantee. I hate companies that play that game!

Here's what it says on their Purchase Guarantee screen - which is what most people would be going by:

Cardpool is committed to making our customers happy by offering the highest level of service possible. If you are not satisfied with your Cardpool purchase for any reason, you may return your unused gift card for a full refund*. If you purchase any gift card from Cardpool, we guarantee it will be valid at the merchant and to the dollar amount specified on your order. We make such guarantees for up to 100 days from the date of your purchase, up to a maximum of $1000 per customer.
* Return policy does not apply to electronic gift cards or mobile gift cards due to the nature of the program. The Cardpool Purchase Guarantee is subject to the terms and conditions in our Terms of Use Agreement.

(Note it says the Return policy does not apply to electronic gift cards, but they don't say anything about the validity guarantee not applying. I believe the company is being PURPOSELY misleading in this regard, given the terms of service below.)

But then here's what's buried in the Terms of Service:

PURCHASE GUARANTEE PROGRAM DOES NOT APPLY TO ELECTRONIC GIFT CARDS OR MOBILE GIFT CARDS DUE TO THE NATURE OF THOSE PROGRAMS.

OP, I am sorry for your pain, but I appreciate you calling this out. I WILL NOT be purchasing cards from Cardpool anymore. I tended to purchase electronic cards, but thought they would be covered by the value guarantee.

If you used your credit card to make the purchase, dispute the charge. There's a good chance the credit card company will side with you. You might get black-balled from Cardpool as far as future purchases, but who cares - they aren't a company worth doing business with.

 

[mmfox316]

This made me question the site I use. But raise has no such clause about egifts vs physical. I have had this happen 4 times in 12 months through them. Each time I received a refund no questions asked. It happened yesterday for time nbr 5. I was busy so I just emailed in the claim but no response yet. Here is the raise guarantee. But the fact remains:
Buyer beware.
Buy is small amounts and use immediately. Buy enough to purchase your target limit 3 $100 cards and then use them. Then repeat.

Just don't buy more than you can afford to use.