Want Cash for your Gift Card?

Week 4 - First up was an entrepreneur looking for capital for his company Gift Card Rescue. The idea behind the company is that they will buy your unused gift cards at a percentage of the actual value. They then take those gift cards and sell them at a discounted rate. Money is made by buying at 50-60% of the card value, and then selling for 80-90%. It's a simple idea and is probably useful for people who have extra cards lying around and may just need some quick cash for another purpose. It's also a great way to save some money by purchasing the cards at the discounted rate.

Is it legal? It seems fairly straightforward, and I suppose that the store still receives the full value of the card at the time of purchase.