Founded in 2015, Paxful is a market leader in the peer-to-peer crypto trading industry with $25 million in trades per week in 167 currencies and over 300 payment methods. This article explains how Redeeem differs from Paxful for trading gift cards for bitcoin. It's worth noting, I'm a big fan of Paxful and hugely supportive of there mission—especially in Africa and Latin America. But when it comes to gift cards and bitcoin, there are a few key differences between the two platforms that you should be aware of before you trade.
1. Less Scammers
Paxful is very public with their headaches dealing with fraud. At one point they even tried banning Nigeria from trading to help reduce rippers, scammers and hackers from stealing bitcoin and gift cards. At Redeeem, we have less than a 3% fraud rate on our gift cards every day and handle only a few disputes per day. We use automation to detect fraudulent behavior and we track fraud rates with sellers very diligently. We show Trust Ratings of the seller and other quality metrics to every gift card so buyers can find trusted sellers faster. Sellers with excessively high taken card rates or disputes are removed from the platform entirely and we charge small fees to sellers for bad cards to discourage bad behavior.
2. Better Gift Card Experience
Probably the most notable difference between Paxful and Redeeem is that our product and business focus at Redeeem has always been gift cards while Paxful supports trading in over 300 digital assets. It's hard for Paxful to optimize the trading experience for gift cards when they have hundreds of other assets being traded on their platform. For starters, on Redeeem there are no chat rooms. You communicate with your buyer or seller through automated system notifications instead of chat so there's no need to negotiate or argue with anyone. The gift card trading experience is more friendly and less confrontational on Redeeem.
3. Better Dispute Process
One notable difference between Redeeem and Paxful is their difference in dispute processes. Due to higher fraud with Amazon gift cards, any buyer who chooses not to record their gift card claim attempts on Amazon using our video extension for mobile and desktop will forfeit any rights in a dispute. For all brands, buyers can refund any gift card within the cooling period and receive a full refund. Sellers can file a dispute within 1 hour of the refund and our fraud team will carefully examine the dispute and award a winner usually within 24 hours.
4. More Cryptocurrencies
At Redeeem we use CoinPayments payment gateway to convert Bitcoin and dozens of other cryptocurrencies into store Credits for 0% fee. This allows buyers from all over the crypto universe to convert their coins into Bitcoin so they can trade gift cards on Redeeem. As of today, Paxful only supports trading in Bitcoin.
5. More Stable Earnings
Unlike Paxful, all trading profits on Redeeem are calculated in fiat currencies like USD, EUR, CAD or JPY until a withdraw is requested. You can request a payout into bitcoin at any time on the Earnings page. This policy is to save on miner fees and protect sellers from bitcoin price fluctuations throughout the day. The maximum amount of owed penalties will be deducted from each payout. Once bitcoin has been deposited to your wallet, it is in your sole possession.
6. Customized Alerts
Redeeem allows traders to receive real-time alerts in WhatsApp, SMS or email for order updates and when certain market conditions are met so you can trade at optimal times and maximize profits. Visit the Profile page to adjust your desired messaging channel and frequency of alerts.
7. Set Your Own Rates
Less scammers, a faster and better gift card experience, better dispute process, multiple cryptocurrencies, more stable earnings and customized market alerts on WhatsApp and SMS ultimately means better rates for everyone. As a seller on Redeeem, you are in control of setting their own rates and you can update your rate at any time. So sell your first card today.
Redeeem have over 1600 positive reviews from customers on CoinPayments and many more excellent reviews on TrustPilot, so you can rest assured that you will always be treated with fairness on Redeeem. For more tips and tutorials, check out our Blog and Help Center.