How do gift cards work? When you buy an Amazon gift card and - /biz/ - Business & Finance

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Anonymous
2015-12-27 17:59:54 Post No. 1014676
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Anonymous 2015-12-27 17:59:54 Post No. 1014676 [Report]

How do gift cards work? When you buy an Amazon gift card and then use the funds off it to buy an item on Amazon how does the seller get the money? Is it just the same as paying them through a debit/credit card, or is there something different when a purchase is made using a gift card? Same with something like Steam or Ebay.

Anonymous 2015-12-27 18:03:43 Post No.1014680
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Anonymous 2015-12-27 18:03:43 Post No.1014680 [Report]

Amazon would take in money from the person who bought the gift card and then distribute that money when the gift card is used I'd assume.

Anonymous 2015-12-27 18:07:37 Post No.1014683
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Anonymous 2015-12-27 18:07:37 Post No.1014683 [Report]

From the business side, it's an unearned revenue. IE a liability. And when the person uses the gift card, they transfer the money they originally received to the seller of the product and thus the liability is gone.

It probably gets a bit more complicated than that considering Amazon fees and what not, but that's the basics of it.

Anonymous 2015-12-28 06:13:57 Post No.1015313
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Anonymous 2015-12-28 06:13:57 Post No.1015313 [Report]

Holy fuck this board is full of retards

Anonymous 2015-12-28 07:34:15 Post No.1015353
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Anonymous 2015-12-28 07:34:15 Post No.1015353 [Report]

>>1014683
Contra asset, not a liability.

Anonymous 2015-12-28 07:49:25 Post No.1015367
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Anonymous 2015-12-28 07:49:25 Post No.1015367 [Report]

>>1015353
Thank you for being the voice of reason.

Anonymous 2015-12-28 08:26:27 Post No.1015380
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Anonymous 2015-12-28 08:26:27 Post No.1015380 [Report]

>>1014676
Holy shit are you retarded OP?