I would assume that retailers buy iTunes gift cards from Apple at a discounted wholesale rate, then sell them for less than face value and still make a small profit.I’d be happy if you can just explain why anyone is willing to sell on iTunes gift cards at a loss. I mean, sale prices on products, coupons, or groupon, credit card “cashback” or points, are one thing - they all have margins built in.
But, this is just straight up loss. A $100 gift card cost Apple or CostCo or BestBuy or whoever, $100. And they’re saying, sure give me $80 and I’ll turn it into $100 instead.
Perhaps that's why Apple Store gift cards are kept separate. They might actually be worth their face value.