<i>Thus, with immediate, online transactions, the opportunity for fraudulent activity (i.e. the use of unauthorized credit cards to purchase gift cards) increases. In response to these security concerns, Tsai says Cardpool has devised a system to carefully monitor transactions and detect patterns.</i><p>Are there startups that provide this sort of fraud detection, the way Directed Edge does recommendations?
This is a great competitive advantage for cardpool.<p>I imagine gift card prices will increase since it's effectively a coupon for anyone ordering things online now.
Anyone have an idea how big this market is? Seems like the market for unused gift cards for which the owner cares enough to transfer the credit, and cares about waiting a few days, would be pretty small.