yournamehere

A bit of a rant here - but I’m sure a few of you who read this can relate to it:

It used to be, before large corporations assumed they were the rightful owners of any money you might have, that if someone gave you a $100 gift certificate for Christmas, you could go into the store, buy something for $20, and get $80 change back.

Not any more.

Gift cards have replaced gift certificates nowadays, and with their magnetic strips keeping track of every penny, corporations are now not only making sure they make their profit on every bit of the card’s purchase amount, but also are forcing you to either:
A. Leave some of the money unused (In other words – getting paid $100 for a $78 gift card – if you don’t return), or
B. Forcing you to spend your own cash at that store to cover the difference in the price of what you want, and the balance left on your card.

To me, either way is an unethical way to do business, but it has become business-as-usual in this era of blatant corporate greed.

I got a $50 Best Buy card and bought a printer cartridge ($42). Instead of getting $8 change back, the clerk said, “You now have $8 left on your card.”
I said, “But you don’t sell anything here for $8. – I’ll just take the cash, please.”
Him: “But it’s not our policy to give cash back on gift card purchases – the card is as good as cash.”
Me: “But only in this store. I’d like to buy some ham before I get home – do you sell ham here?”
Him: “Manager – register 5!”

At a sporting goods store, I was dismayed to not find any of the 3 things I wanted to buy there with my $100 gift card. Knowing what to expect if I used the card, I went to Customer Service to just return it for the cash.
Her: “May I see the card?”
Me: “Sure” – watch as she scans card and big “$100” appears on screen.
Her: “Do you have a receipt?”
Me: “Of course not – it was a gift.”
Her: “We can’t give refunds without receipts.”
Me: “Let me speak to a manager.”
(20 minute wait . . . . )
Manager: “It’s not our policy to give refunds for gift cards.”
Me: “That’s a pretty lousy policy, if you ask me.”
Manager: “I didn’t ask you.”
Me: “May I speak to your boss?”
Manager: “He’s not in today.”
Me: “Fine – just give me his name and when I can reach him.”
Manager: “That information is in my office.”
Me: “Let’s go, then.”
Manager: “I can’t go there now – I have to stay on the floor.”
Me: “Why?”
Manager: “It’s my job to help people if they have any problems.”
Me: “Like you’re helping me? Never mind – I’ll just get the receipt and then come back for the refund.”
Manager: “It won’t matter – it’s our policy to not give refunds on gift cards - PERIOD.”

I would go on – after all – I got a gift card for Home Depot, too.
I can make an exception for them, though – most of my money seems to go there anyway. I know it’s not logical to excuse them – bad policy is bad policy – no matter where it happens. Besides – the reason I go to Home Depot now is because Lowe’s wouldn’t give me change back from a 1999 gift card . . . .


So – what do you think of this?
Do corporations have the right to demand that <i>all</i> of the gift card amount gets spent at their store? After all – they make their profit on whatever amount of the card you spend. Worst case scenario? Even if they refund the money, they still made interest on the $100 (or whatever) in the month or so they had it.

I’m wondering if these policies are even legal.

__________________
If you want to avoid 95% of internet spelling errors:
"If your ridiculous pants are too loose, you're definitely going to lose them. Tell your two loser friends over there that they're going to lose theirs, too."
It won't hurt your fashion sense, either.

skysooner

I'm not 100% certain, but this very well may relate to GAAP (Generally Accepted Accounting Principles) and the way that things are classified. I know that there are certain issues with gift cards that mark them down as future obligations. However, it has been too long since I took accounting, so I'm not certain of this.

ratbastid

skysooner's right: gift certificates in any form are accounted for as liabilities. Those have to be offset by inventory deduction to be accounted for correctly.

Which isn't to say it didn't work in the old days, it just took some book juggling. And that's probably NOT the reason for the whole gift card thing. I think your rant is dead on the money, yournamehere. It's a way of retaining those last few bucks of revenue, rather than refunding them at the end of the transaction.

Personally, I'd never give anyone a gift card to someplace I don't already know they're spending money. Otherwise you risk wasting the last couple bucks of your gift, as you say.

I don't mind a gift card to, say, Barnes & Noble, because give enough time, I WILL spend the whole card and more there. Not a problem.

Cynthetiq

also if you pay attention to the rules of the gift cards you'll see that some of them charge a FEE for managing your gift card. If you don't use the gift card for a year, they will assess a $1 fee charge to the card.

it's there in black and white for most gift cards.

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forseti-6

Not sure if this works, but what would happen if you took your gift card, bought something with it, then returned it? You would have a receipt, and they would give you cash back right?

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yournamehere

Thanks for the suggestion.
That's what I plan on doing at the sporting goods store - I was hoping to hear from people who have successfully done that. I hope I wouldn't end up making two trips, just to end up with another gift card and an empty gas tank.

__________________
If you want to avoid 95% of internet spelling errors:
"If your ridiculous pants are too loose, you're definitely going to lose them. Tell your two loser friends over there that they're going to lose theirs, too."
It won't hurt your fashion sense, either.

sillygirl

I think it's bullshit that companies do this also. I have several gift cards sitting in my wallet for places I won't shop at again. I only know of one store that'll give change back for a gift card, and that's Mervyn's a place I refuse to shop at.

Most of the time when people give me gift cards though, it's to stores that I'll use them at.

__________________

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thingstodo

As they say, buyer beware. Actually, if you really want to screw up a business, use the card during the holidays when they want you to spend NEW money.

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Harshaw

I think it is pretty rotten. I understand why they want you to spend all the money on the card. Its the same reason I can't go back and adjust a bill over 90 days old. That money is on another book now. But as a customer service thing, its just the right thing to do. Really, anything under 10 bucks should just come back in cash.

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This too shall pass.

skysooner

Yes, it is strange in this day of high tech that they couldn't be more accomodating, but the almight dollar is the driving force to stay in business.

fhqwhgads

Can't speak for all businesses, but if you return something at Home Depot, they almost always give you.... a gift card!

Good luck...

shakran

usually that's only if you don't have the original receipt. If you have your receipt they'll give the money back in whatever form you gave it to them, unless it's a check recently written in which case they wait for your check to clear before mailing you a check.

I dunno, yeah the gift card thing is sorta smarmy, but I've never gotten overly excited about it. I mean, that $8 you have left on the Best Buy gift certificate. . . You're gonna buy something at Best Buy some time in the future. Now you'll get $8 off of whatever it is. You still come out ahead.

anleja

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.

Cynthetiq

yeah those of you that don't want the gift card that has a few bucks still on it... give them over to me. I'll be happy to take them off your hands.

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I don't care if you are black, white, purple, green, Chinese, Japanese, Korean, hippie, cop, bum, admin, user, English, Irish, French, Catholic, Protestant, Jewish, Buddhist, Muslim, indian, cowboy, tall, short, fat, skinny, emo, punk, mod, rocker, straight, gay, lesbian, jock, nerd, geek, Democrat, Republican, Libertarian, Independent, driver, pedestrian, or bicyclist, either you're an asshole or you're not.

synic213

Hey, at least gift cards don't expire like they used too. Glad somebody made that illegal business practice. Down with the man!

Yalaynia

I think its really stupid that you cant get cash back on a gift card.
I mean I have seen people buy something in march for a friends bday in august , they tell the clerk that its a bday present and the only reason they are getting it now is because its onsale. The person buying it asks is there a way to return it if soandsos doesnt like it and because shes getting it so far in advance. On that note they print up an extra receipt with out the price on it so that IF by chance the person you are giving it to doesnt like it they can come back and buy something that is to their liking. But its the same thing if you dont use the whole amount they dont give you the difference they throw the money on a gift card or a store credit and those are just as bad, because they do the same things as the card, count down every penny. Doesnt make sense if you ask me. You have proof where the card was bought I mean how hard is it to miss WALMART or STAPES or whatever the name of the company is.
People are doing that a lot for christmas bonuses around here because the government is coming down on them for having to pay tax on it, which is another thing thats rediculous.

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I couldnt think of anything to put here , but I guess anything would do

raeanna74

I'll take a Walmart gift card but otherwise keep your gift cards. I got a couple when we got married from Walmart. It's a place I always shop and for setting up house they have pretty much anything I might want. So I used it all. I was going to buy stuff anyway I just either got it cheaper or free with the gift card. That's how I looked at it.

If you don't like shopping at certain stores but have a gift card there just use the card to get a gift for the person that got you the card. Just don't tell them you did that. If they got the gift card from there it's likely or at least possible they shop there often themselves and would like something purchased there. Just make your gift shopping easier. I know it's kinda sucks that you can't get cash back. I don't give gift cards. I'll give cash if I'm not going to actually give something that I found specifically for the person I'm giving too.

Or now there's a credit card type thing you can get as a gift card. It has a certain amount of credit and can be used anywhere. Fleet Visa offers one but there's a monthly fee for every month there is a balance left. Same with the Discover gift card and Bank of America Visa. The fee is minimal and if you tell the person about it to begin with they can use it for what needs they have. Unless you put a lot of money on it I doubt it would take long to use up since you could use it almost anywhere.

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sexymama

On the same line, when trying to return an outfit my daughter got for Xmas that was too big for her, we were told we couldn't have the sale price on the new outfit because we were doing an exchange. I said, fine, then I'll return this item and buy the new outfit for the sale price using my credit card. They wouldn't do it because I didn't have a receipt. They could only issue a gift card. I said fine, and they still refused because I was going to buy another item and the "gift card cannot leave the store." I said I would shop for me with it on that day -- but no, that wouldn't do either. I just said forget the whole thing, I'll call her dad for the receipt.

He sent the receipt. Two weeks later I was back in the store trying to return the item for cash (I did not want to give them my business after the terrible treatment.) And guess what? You got it -- they'd only issue a gift card.

For my daughter's sake, we spent it. (By the way, it was worth more than they were originally going to give me, so that was good and she got her new clothes on sale -- that too was better.) But I will never shop at that store again! Their system is screwed up! I closed my credit card too and they had to send me a refund check as I had over paid it. Funny!

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Battlefield

I don't see how GAAP would have anything to do with it. Exchanging inventory(product) or cash(refund) to reduce the liability have the same implications.

I know many stores do give you the excess of the purchase in cash. My (loser) friend gets gift certificates to a grocery store like safeway, goes and buys $10 worth of stuff and gets cash...

I think it's fair they give you a refund on the entire gift certficate. Not giving someone $8 change on a gift certificate is ridiculous. Maybe they could stipulate a certain % of the gift card has to be spent before you can get cash for the amount not spent.

FleaCircus

I understand where you're all coming from, but at the same time, it seems to me that as long as the store's gift card policy is consistent for all customers, not fraudulent, and properly disclosed (as in the case of fees for prolonged inactivity), the store has the perogative to set the policy however they want.

It may not be how you'd set the policy, but, well, that's capitalism for you.

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yournamehere

When was the last time you had "store policy" explained to you when you purchased a gift card?

Sure - "buyer beware" is true of all things in life, but I think a shitty policy is a shitty policy, no matter how many times it's documented, discussed, or disclosed. It's putting bottom line before customer satisfaction.

Bottom line for me:
I'll never buy another one. or ask for one again - or shop at the stores that have that policy.

__________________
If you want to avoid 95% of internet spelling errors:
"If your ridiculous pants are too loose, you're definitely going to lose them. Tell your two loser friends over there that they're going to lose theirs, too."
It won't hurt your fashion sense, either.

jw_toyboy

I work at a big hardware chain in Australia, the equivelent of Home Depot sort of. Our practice is we will give you up to $9.95 cash. Otherwise you get a new card.
Say for instance you get a $50 card, you spend $34.50, will give you $5.50 cash and a $10 card.
It sucks.

Nazggul

Be happy for the $42 gift that someone gave you.

I mean, its not like the store took $8 out of *you're* pocket. It was you're friend who got hit. Now, I see that as a choice that person/company made when deciding to give you a gift certificate instead of cash.

Frankly, if I am very short on time to get a gift and resort to getting the certificate, then I don't mind paying the $8 bucks for the convenience. And frankly, I'll never even know the difference.

Just another perspective.

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Chingal0

Uh huh. I agree with your statement in that giftcards are stupid, but saying that you'll never shop at another store with a giftcard policy such as what is common practice in basically any conglomerate store from coast to coast? That is a bit overboard it seems, and I can bet that youll shop at a store with a policy like that sometime before you die. If I lose, ill get you a gift certificate or something!

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Holo

Some of the blame must go to the gift givers as well by locking you in the situation. That sounds ungrateful and it's not meant to but I get gift cards for xmas a lot since I'm big into computers and all my relatives are n00bs who don't know memory from storage so they get a gift card to avoid trying to buy me shit I don't want or need. I'm then forced to go to Best Buy to get a new SD Flash card when Office Depot has it on sale for $20 less. Visa has those throw away credit cards now. I wish to hell I could get one of those next year.

As for greed, what did you expect? It's a corporation. If they could get away with it they'd take your money and give you a bag of shit in return. BTW what sportings goods store was it? I'll make my best effort to not shop there after they hire rude managers like that, no matter where it is you live. My gf doesn't give a shit about this stuff tho so we may end up spending $ there anyway.

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yournamehere

Of course they did. A gift belongs to the person who receives it.

You obviously have no appreciation for my superior grudge-holding skills.
By the way - buying a gift card for someone who just died would please these corporations to no end - I'm surprised they didn't think of that before you did.

__________________
If you want to avoid 95% of internet spelling errors:
"If your ridiculous pants are too loose, you're definitely going to lose them. Tell your two loser friends over there that they're going to lose theirs, too."
It won't hurt your fashion sense, either.

analog

Pretty much everyone uses this policy now- for that, I can't find one single store that issues gift "certificates", instead of the electronic gift cards you're all talking about.

Seems like a lot of ranting over something simple. It's money to be spent IN THAT STORE. You bought it WITH THE EXPRESS PURPOSE AND INTENT of using the FULL AMOUNT of the balance IN THAT STORE. Just because what you purchase isn't enough to kill the balance doesn't mean you have room to gripe.

And who cares if you have to pay the difference in your own money if the purchase is more than the card? You had to do that with the almighty "certificate" everyone's chatting up.

Bottom line is: It's credit for THAT STORE. You knew that when you bought it, or when you received it as a present. You can't suddenly decide, "oh i think i'll take some money from these people and spend it elsewhere".

p.s.- I've never had a complaint about such a thing at my workplace, so I'm not bitter or anything. Just one man's opinion.

Fire at will.

deviant

Tell that to blockbuster. I was there about two weeks ago when they told the guy checking out next to me that his gift card expired.

THAT is some bullshit ladies and gentleman.

I have enought distaste in my mouth for blockbuster as-is, but this raised the bar of an absolutely sucky way to treat your customers.

SexyCat

Actually at Best Buy all the gift cards are backed by American Express and never expire and also never go down in value.

Cynthetiq

that's great.. my $5 Blockbuster says after 1 year they will charge me $2/month of nonuse. I'll have to doublecheck it...

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billege

The key is to tell your friends and family if they wish to give you money, please, give cash or check. Problem solved.

Lots of people feel like cash is a "low effort" gift, but somehow a gift card doesn't have that stigma.

Tell your family to stop taking the cop-out, and just give you a green piece of US treasury paper, and card that says "merry christmas, buy something!"

On my olive garden gift card, a xmas gift, they held 13 cents.

13 cents. Yeah, I added it to the cash tip I left just to get rid of it.

I wonder how much money the stores rip people for on remainders of gift cards that never get used.

I KNOW a lot of people ending up with $3.12 on a gift card forget to EVER use it. How much do those remainders add up for services or products the company does not have to provide?

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Cynthetiq

you know what... that's very true.. John Gotti Jr. of the Gambino crime family in NYC had a phone card scam that did something along those lines... all the amounts under $1 got "absorbed" and he walked away with a few million.

__________________
I don't care if you are black, white, purple, green, Chinese, Japanese, Korean, hippie, cop, bum, admin, user, English, Irish, French, Catholic, Protestant, Jewish, Buddhist, Muslim, indian, cowboy, tall, short, fat, skinny, emo, punk, mod, rocker, straight, gay, lesbian, jock, nerd, geek, Democrat, Republican, Libertarian, Independent, driver, pedestrian, or bicyclist, either you're an asshole or you're not.

billege

That's why one can't get that 5 bucks back anymore. Some genious in corporate accounting figured out how many million dollars the company could keep, all from a simple change in "policy."

The formula goes like this: 100k people buy gift cards, if even 5% leave X dollar amount on the card (and forget to use it) the the company will clear $XX$.

That kid problably got a promotion.

__________________
I can sum up the clash of religion in one sentence:
"My Invisible Friend is better than your Invisible Friend."

Iliftrocks

Just give em cash or a check. Gift cards are a lazy way to give a present anyway.....

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Cynthetiq

hmmm....

steps to giving gift card

• got to store
  get gift card
  open wallet
  give gift card

steps to giving cash

• open wallet
  give cash

steps to giving checks

• open checkbook
  write
  give check

sorry seems like giving cash is the laziest.

japhyryder

I wish all store gave money back but I can somewhat understand why.

Which is why I am very anal about gift list. I list item full name, store & price. That way they have no excuses.

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erion

I'm with you on this. People who ask me for a list of what I'd like as gifts get an excel spreadsheet that is usually updated at least once a month. At the very bottom is a notation that I would also accept gift certificates/cards to any of the places of business mentioned in the list above (because obviously I'd spend them).
That being said, I have a $25 gift certificate to a local shop that is going to crumble to dust before I spend it, because I have no desire whatsoever to spend more than the gift card on a shirt that I will likely never wear.

SecretMethod70

Perhaps but in the end it's the best for you AND the person receiving the gift.

As far the original post's question "So – what do you think of this?" Let's put it this way: is it ethical? Most certainly not. Do they have a right to do it? They sure do. It sucks, but it's their business, and a policy like that is perfectly within their rights. Personally I would have created an even bigger stink with the manager and insisted you get the person's bosses contact info. And when the manager told you that she couldn't leave because she had to help people if they had any problems, I would have responded that, in that case, it's her job to help ME by getting her bosses contact info and that if she didn't I would also report her for NOT helping me with my issues as well as addressing the issue itself with her boss.

Sometimes if you make a big deal about it, they'll just give in. Can't tell you how many times I've gotten to pay by check to the pizza delivery people who kept trying to tell me they wouldn't accept it until I had ordered from this address 10 times in the past. (Well, I guess I can tell you....10 times...cause now I can do it "within their policy." )

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juanvaldes

return it to your "friend".

cash, item or don't bother.

mingusfingers

I've never had much of a problem with that...seems like that's how it's always been for me.

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