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I work at a place called World Market, they issue refunds in the manner the item was paid for: cash for cash, or credit card gets credited. However, if they paid with a chack, the refund is issued in the form of store credit. This causes some mad customers, but most of the people who work there try to tell the customers about the policy when they are paying with a check.
I used a Circuit City gift card, and instead of the $5 balance kept on the card, they gave it back in cash. I think their policy is money back if balance is under 5 or 10 bucks.
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