Today, we received a copy of a letter that was sent out to certain individuals that sold gift cards to TPM. In the image, you can see that GiftCard Mart has conducted some inquiries and determined certain persons sold gift cards to TPM, and then liquidated the cards. The problem is GiftCard Mart had purchased these gift cards from TPM. Talk in private groups of how TPM sellers could recover from losses incurred when TPM checks either bounced or never arrived resulted in the idea that since the monies were never received, or not enough monies were received for cards sold to TPM, the seller could simply liquidate any of the cards that had remaining balances and recover some of their losses.
The gift card industry continuously gets a bad rap when thieves and fraud artists buy gift cards with stolen credit cards, or sell drained gift cards. This practice unintentionally contributes to that bad reputation. GiftCard Mart is a company; they need to keep their reputation with buyers and in turn the industry in general as a reputable source of gift cards. It would appear they have gone out of their way to identify the cards with deficient balances and avoided selling those to the public. It also seems reasonable they would want their money back, and have setup a process to help facilitate that.
It’s always unfortunate to lose money on an investment or business decision, and those in the gift card for points and miles game are really making an investment. If you lost money in the TPM catastrophe, the last thing you should do is liquidate cards you have already sold. As you can see, this just hurts the industry and potentially your ability to sell gift cards in the future, not to mention possible legal remedies which could be substantial, including a trip to court in Minnesota.
UPDATE – I reached out to GiftCard Mart and was told the giftcards they are concerned with are cards that GiftCard Mart bought from TPM approximately 6 to 8 weeks before the TPM collapse. GiftCard Mart feels those transactions to TPM were complete and ownership had been transferred. After determining those particular card balances were depleted, GiftCard Mart sent the letters.