Store return policy: refund method same as payment method question

[slowtyper]

Most retailers will refund you cash if you paid with cash, or refund your credit if you pay with credit. Some are pretty flexibile but I've found most like to stick to the method you used to pay which is OK with me.

However recently I had a problem where I was returning an item and inbetween the time I bought the item I had lost my wallet so all my credit card accounts were different from what was on the recipt. They insisted they could only give me a store credit, and I didn't mind because I planned on buying something else that same day anyways. However, there are many times when I would not want a store credit when I haven't really done anything wrong according to the return policy conditions stated on the back of the recipt.

Anyone else encounter this? So are stores technically allowed to do this or is there any way this can be fought if you are in this situation?

[mystery]

They should be able to refund to a different card number. Just explain to them what happened, and say that your new card number is from the same Card issuer, so it costs them the same.

If they don't, escalate, since just because you had to get a new card # doesn't mean you as the customer should be inconvenienced.

[GreyingJay]

Let me guess, Staples?

Same thing happened to me, I lost my credit card and they would not refund unless I could produce the same card. I had to get store credit.

[bylo]

The reason stores insist on using the same mechanism to do refunds is to reduce fraud and other shenanigans like the following.

Suppose you need some cash but your bank account is empty. You buy something worth, say $1,000, and put it on your credit card. Then you return it but request cash instead of a credit to your card. If the store complies, then they're not only forced to take a loss on your return, e.g. to now sell it at a reduced "open-box" price, but they also have to eat the 2% or 3% credit card merchant fee. And if you have a "rewards" card you'd get to keep the points or rebates. That would create a huge incentive for some people to "launder" money using this technique.

So instead, store policies on returns tend to be quite strict. If this happens to you again, ask to speak with a manager. Explain the situation with your credit card and ask the manager to contact the card issuer to confirm that this is a replacement for a lost or stolen card.

[yuen47]

I think it's understandable if the store will only give you store credit. The way they are doing it, if they verify the card number they are guaranteeing themselves that it's a legit refund right? But if they bypass that guarantee it means they are running of trust that the customer is legit and not a scammer, which sometimes is not enough for them to say "yes".

You could think of it likewise - if you were a scammer, you could have done the exact same thing and STILL get credit back onto a card from a purchase you didn't make, from a receipt you found and a product you stole? In my mind the store is only covering their own ass over this and I think it's a legit reason. As much as people hate to stereotype it, if you dress like a bum and go in and try to do it, then you're asking for a refusal, but if you're a grandmum with a few grandkids doing that then you're probably deemed "trustworthy". Totally should not be judging it on looks, but that's the way it goes.

[slowtyper]

Some excellent arguments regarding "rewards" fraud and possibility its a lost/stolen recipt.

It wasn't Staples it was Walmart which was quite surprising since their return policy is pretty lax. It was just something that I had never thought of before because I guess for most people its not really a situation that comes up all that often.

[Cheap Cat]

I had an issue when PC Financial suddenly canceled my MC due to some internal security breach. Zellers just returned an item to my replacement MC. I don't think they even realized it was a new account number. But Sears catalogue insisted that it had to go back to the original account which no longer existed. I spoke to someone in the office and they wouldn't budge. PC had told me that once the account was canceled nothing could be processed to it including returns. I had specifically asked because I had done some Christmas shopping with it so I knew that it was quite possible that I would have some returns to make. The Sears credit did eventually get transferred to my new card but it was very frustrating.

[xtreemboarder]

I actually used to work for SDM as a supervisor so I handled lots of refunds. I've encountered this situation many times but honored it many times because if its a credit card their name is written on it. 80% of the time the customer used their optimum card, which shows up on the receipt. I would simply check the name on the optimum card and if it matches I honor the return.