Gift Card Mart Temporary Shutdown
Gift card reselling went from a relatively new idea to a hot industry in a short amount of time. Over the past few years we have seen the rise and fall of a few companies as the space matured, most notably the sudden disappearance of The Plastic Merchant.
One company I have occasionally bought from and sold to has been Gift Card Mart. I first started selling to them 3-4 years ago and have never had any issues, although it has probably been over a year since I have done any business with them. Now, it seems they aren’t doing business with anyone. At least temporarily.
Based on a tip from a few readers I checked out their website and it says the following:
Due to technical difficulties, we are currently unable to accept purchase or selling orders. We apologize for the inconvenience and appreciate your patience and understanding.
Gift Card Mart statement
When I learned this information I reached out to Jake Breedlove who runs Gift Card Mart and asked for a statement. Here is what he had to say.
We initially suspended customer gift card sales under the assumption that it was a short-term necessity while we fixed some underlying technical issues; however, after a few days, it became increasingly likely that the outage was going to take longer than expected.
As a gift card exchange, our business model depends on our ability to sell the cards we purchase and with all but our ACH Debit customers being cut off from making new purchases, suspending further card acquisitions was the next logical step to prevent a ballooning balance sheet and protect against any structural instability.
Regrettably, this service outage has now persisted for several weeks and consumed significantly more time and resources than anticipated, and though we don’t yet have an estimated resolution date, I can assure you that we are working hard to restore normalcy as quickly as possible, and we’re looking forward to launching a brand new purchasing experience for our customers.
I want to sincerely thank everyone for their patience during this challenging time, and I am looking forward to putting this operational hiccup behind us.
Other than the message showing on their website and the statement from the company I have no other information. Given the history of what has happened in this industry though I thought it would be wise to share this information and to also ask for your data points.
Specifically, if you sell to Gift Card Mart:
- Do you have open unpaid work orders?
- Have you heard a different reason than what is mentioned above for them shutting down temporarily?
- Have you been paid late on any sales?
Please share any data points and your personal experiences below.
The Plastic Merchant debacle created a lot of nervousness in this space, so any time the smallest irregularity surfaces it can cause overreaction. In this case we don’t know anything is truly wrong, although we don’t know the opposite either.
Please share your data points in the comments and I’ll make sure to add any more information from Gift Card Mart or others as I get it.