CardXchange.net was founded in 2008 by two childhood friends, Elliot Bohm and Marc Ackerman, looking for a way to get rid of their unwanted gift cards into much needed cash. The pair started the web’s first secondary gift card market for unused gift cards.
As trailblazers in the industry the learning curve was steep, as much of the buying and selling of gift cards up until that point had been done through eBay or Craig’s List, two options that didn’t provide ample security for the gift card industry. Adapting to the security needs of the industry, CardXchange.net actually buys all gift cards and pays the customers directly, before turning around and selling the gift card at a great discount.
When Elliot and Marc entered the industry there was a shade over $90 billion in gift cards sold in the US; by 2016 that number is expected to hit $140 billion, with the share of the unused gift card market growing sharply as well. Since its inception CardXchange.net has grown from turning $100,000 in unwanted gift cards into cash, to where in 2013 the company bought over $55 million in gift cards, and then sold these gift cards to customers who save as much as 35% at their favorite stores.
In November 2013, CardXchange.net raised $6 million in Series A funding from Guggenheim Partners. CardXchange.net was recognized by Forbes in 2013 as one of America’s Most Promising Companies, and by Inc Magazine in 2012 and 2013 as one of the Fastest growing Companies in America.