Methods, systems, and computer readable media for peer-to-peer third party distribution of gift cards and associated transaction processing are disclosed. In one method, a peer-to-peer gift card transaction router and a peer-to-peer gift card transaction database are configurable to facilitate peer-to-peer transaction processing for gift cards issued by a gift card provider and distributed by a third party seller where the gift card provider and the third party seller negotiate an agreement with each other regarding gift card distribution. A record is created in the database corresponding to the agreement. When a gift card transaction occurs, the record in the database is accessed and used to communicate notification of the gift card transaction from the gift card provider to the third party seller.