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Posted by tosh 12/18/2025

Are Apple gift cards safe to redeem?(daringfireball.net)
562 points | 467 commentspage 4
paul7986 12/18/2025|
I just bought my niece a Visa gift card and she said she had the hardest time using it. Not many would accept it. What's up with this latest gift card scammed .. tampered gift cards. Has the media not done a blitz on this issue yet? It's the holiday season and many are going to be scammed! I will be giving a greeting card with cash or just cash app family members.
charcircuit 12/18/2025||
Visa gift cards never were widely accepted since they are so often used for fraud.
quesera 12/18/2025||
Visa gift cards have historically been widely accepted (anywhere you see the Visa logo), with a few exceptions, mostly online.

InComm is one of the two major program managers in the space, and they have had really severe fraud problems for a few years. They cracked down hard on prepaid card ("gift card") redemption about two years ago (right after the holidays).

This is an ongoing problem involving Visa, InComm, DHS, and a couple banks. Customers are being damaged, Visa's brand is being damaged, etc.

InComm is invisible to customers, but it was their action that made (most) Visa open loop prepaid debit cards difficult to use.

Notably, the other major program manager (Blackhawk Networks) also runs a few lower-volume Visa card programs, and they are still accepted normally.

Informed customers can make an explicit decision to purchase only Blackhawk-managed Visa cards. But that information is not trivial to obtain.

paul7986 12/18/2025||
actually i stand corrected she said she couldnt use it anywhere online but no issues using offline.
hrdwdmrbl 12/18/2025||
Unfortunately, at the moment, for normal people, the legal system is our only option.

I am not a lawyer, but I have done this multiple times:

Read the T&C and search for "dispute" or "dispute resolution". Look for what you're supposed to do when you have a dispute. Follow the steps as outlined. Corporate lawyers generally take things seriously.

notatoad 12/18/2025||
I understand why Apple sells gift cards. I understand why brick and mortar stores sell gift cards for third parties like Apple.

But what do the credit card companies get out of this arrangement? It seems like they’re taking on a whole lot of unnecessary risk and enabling these scams by allowing third party gift cards to be purchased using a credit card.

mrguyorama 12/18/2025|
Hello,

I work for a major gift card company. These views are my own and not that of my employer.

The credit card companies take zero risk in this transaction, because we, the company selling the gift card, take the risk.

To this end, my personal job is building systems to prevent and combat credit card fraud. It's not terribly complicated in fact. The team I originally started with a decade ago was like three people.

Every gift card purchased by a stolen credit card is a direct loss to our revenue. We strongly want to keep that amount small. We do a pretty good job of it.

We have a large department of REAL HUMANS you can call to get help with your gift card. In the past, they have had very upset grandmas calling in to ask about why they can't purchase iTunes gift cards because they need them to get their nephew out of prison. Those calls are very sad.

Physical gift cards have no value until you pay the cashier. Despite this, physical gift card security is tough. The plastic card has to be shipped out and sit on a shelf and be directly available to anyone to tamper with. We have made some efforts to reduce that threat, but there isn't much we can do.

If you are in the US you have absolutely used our company's products and if you have bought a gift card online there's a 90% chance your transaction details have run through my code.

Frankly, I do not understand why Apple would have banned an account for trying to redeem a scammed or tampered with card. That doesn't make any sense.

fencepost 12/18/2025|||
Are you able to track balance checks made against card numbers not yet activated? That seems like it'd be a dead giveaway for physically tampered cards and if you could prevent activation of those it'd at least make tampered cards harder to use.

Presumably you could also take things back to the level of "store X, you have a serious problem."

mrguyorama 12/18/2025||
Again, speaking as myself, not for my company

>Are you able to track balance checks made against card numbers not yet activated?

Yes. Can't get into specifics. Not every card supports balance inquiry though. Not entirely sure how this applies to physical gift cards.

Usually what happens is that someone simply writes down the card number, and waits, and then tries to redeem it. They don't do a balance check.

>Presumably you could also take things back to the level of "store X, you have a serious problem."

We can get down to the register. Fraudsters are sometimes employees. But you can't treat customers like criminals so doing anything about it is hard. These same stores don't seem to mind customer info leaking and credit card data being stolen in the first place.

We sometimes have to replace these cards for consumers, because it's dumb to spend a hundred dollars for a giftcard and it was stolen previously, that's not their fault

quesera 12/18/2025|||
Thanks for the program management perspective.

Most consumers are blissfully unaware (as they should be!) of the complexities of ordinary payments transactions, never mind the even-weirder world of closed loop prepaid debit.

freedomben 12/18/2025||
Genuine question: if your Apple account is locked, and you're unable to create a new one, is your iPhone still usable?
tikimcfee 12/18/2025||
In a genuine and everyday real sense, no, your likely thousand dollar device is not usable. The App Store requires an account to download from. Internal services and apps often complain about not being available. You are mostly stuck with whatever built in, non-cloud services the device comes with, which isn't much. Weather and mail fetching come to mind. Maybe some of the simple recording / note taking like apps. A working Apple ID is essentially a requirement to actually use the device you purchase. And yes there will be comments from folks about "ways" you can perhaps sideload or get things running, but to a regular person that simply uses a phone like a standard appliance in their life - they're stuck.
blturner 12/18/2025|||
This is one of the reasons the used market for Apple devices is absolutely fraught with danger. If an Apple ID is left active on the device, only Apple can reset it. In most cases, they will only do that if they are provided the original purchase receipt for the serial number associated with the device. So in theory, removing the activation lock from owned devices is possible in a situation where a locked apple ID cannot be recovered if you are the original owner. IMO, there should be a process to release devices that haven't been used for a certain amount of time AND haven't been reported stolen. But there's very little incentive for Apple to do this.
estimator7292 12/18/2025|||
If you read the other posts about this, the author explains that the phone technically still works, but you can't access iMessage or anything. Probably basic text and calls only.
exitb 12/18/2025||
The author did mention though that they were unable to log out of iCloud, as that requires to be logged in to iCloud. That would prevent reuse of the device with a different account.
dagmx 12/18/2025|||
Yes, you can continue to use anything that doesn’t require using Apple services.

So you could use your existing apps but not download new ones from the App Store.

You could use iMessage with some restrictions. You could use Apple Music but only the free radios. You could use Apple’s photos but would lose sync.

Usability depends on how much you rely on those services, but the device itself is still useable for other things.

kombine 12/18/2025||
This is a digital prison
SirMaster 12/18/2025|||
Why can't you make a new one?
Xylakant 12/18/2025|||
Your iphone is tied to the old apple account and you can't untie it if you can't access the old account. (You can go through support with proof of purchase, but that requires you have proof of purchase at hand etc.)
TheDong 12/18/2025||||
Now you've tied a new account to your old banned one, so you're evading a ban and your new account should get banned too.

It's against apple's ToS to avoid bans as such.

catlikesshrimp 12/18/2025|||
You forgot to add /s and the reference, because you come up as conceited, when you are being critic of previous Apple statements.
kayodelycaon 12/18/2025||
Not really. I have an iPad without an Apple account and you can’t do much with it.

That said, I choose to use it this way and it does everything I need it to.

burnt-resistor 12/19/2025||
The universal workaround is not to buy or use gift cards, but to give people value in other forms like cash, prepaid debit, or bank transfer apps like Zelle.

Reasons:

1. Gift cards artificially tie-up value into a company that cannot be effectively converted into something else.

2. The value can disappear.

3. Weird other hassles like this can happen.

parliament32 12/18/2025||
> It also leaves the question of... why it took the better part of a week to resolve.

I'd put money on they had to restore backups of several systems, fish out his account-specific data, then insert it back into the main systems. This would have happened much faster if there was just an on/off switch.

TuringNYC 12/18/2025||
You'll hear tons of similar stories with GCP/Google accounts.

This is the same reason I dont use GCP -- ever -- for business. If there is ever an unintentional linkage in GCP of your personal gmail account, and you have an issue on GCP, your personal account can get locked out.

m463 12/18/2025||
I remember many (many!) years ago, when some american express travelers checks were counterfeited.

They did The Right Thing™ which was to honor them, so that their reputation and brand were preserved.

lots of other examples, like new coke fiasco, the poisoned tylenol, etc...

petra303 12/18/2025||
So never buy a gift card at a retail location, unless it’s digital. Preferably buy directly from the website of the company where th credit will be used.

But why would apple punish the secondary user of the card? That seems like the wrong person to punish.

PaulHoule 12/18/2025|
Gift cards: it's a steal, so just say no. I want to say if you get one from your sister-in-law give it back but now I'm afraid she'll face terrible consequences from cashing it out.

... note an update on this story: Paris got his account unblocked today, thanks to the story being covered here and throughout the blogosphere. It's a good outcome but not a path open to most people:

https://hey.paris/posts/appleid/

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