Question
Late last year I used my Banana Republic credit card during a "triple points days" promotions to buy an overcoat for about $300--and then decided a couple of days later that I didn't need it, and returned it. In the few days break in-between, the billing cycle closed on my card.
Recently (after the usual processing time), I got a $50 reward card, which is what I would have earned had I not returned the coat. So, the conclusion is either that--a. certificate lists are generated when the billing cycle closes, so you could generate lots of free certificates by buying enough stuff for a certicate before the close, then returning after the close, or b. returning triple point items only deducts single points, not triple points.
Any thoughts?
Answer
Late last year I used my Banana Republic credit card during a "triple points days" promotions to buy an overcoat for about $300--and then decided a couple of days later that I didn't need it, and returned it. In the few days break in-between, the billing cycle closed on my card.
Recently (after the usual processing time), I got a $50 reward card, which is what I would have earned had I not returned the coat. So, the conclusion is either that--a. certificate lists are generated when the billing cycle closes, so you could generate lots of free certificates by buying enough stuff for a certicate before the close, then returning after the close, or b. returning triple point items only deducts single points, not triple points.
Any thoughts?
I think this is unethical at best and probably illegal by the CC fine print. my question is: Do you feel its right to take advantage by deception?
Ken in Phx
Answer
Disregarding any question of whether or not its ethical, I wouldn't want to be around when they ask for their money back...after they show you the fine print that says what you're doing violates their T&C :D
Answer
I think it indeed happened the way you described --- once statement closed, you "earned" a certificate. I believe if you got triple miles & returned the item, you would get triple miles deducted. I believe it is true of all cards that issue any type of reward. In most cases (such as miles or points), if you have a negative balance/credit back the following month, you will earn minus points or miles. I believe they will take away the points/miles from your actual account, but I am not sure for each and every program. I know it is true of the Chase Priority Club Visa (just happened to me, I was -$4 for one statement so I got -4 points taken out of my priority club account). For Delta, I believe they wait one or two statements before they post your miles, I'm guessing to deduct for returns (which makes it a headache if you are trying to see if they are giving you the correct miles, as they also deduct returned double miles).
I'm not quite sure what stores do when you get a paper certificate. It's interesting because you'll have a statement balance, but end up paying it with a creditback. I'd be interested in knowing if you kept your card & did this, what they would do if there was no activity on your card. If you close your account right away, they may void your certificate (of course I assume you've already spent it) --- if you don't close your account, they may not take away the certificate but wait for "future purchases" to fill the certificate requirements. Or possibly they will charge your card the $50 back if you close it. For stores with a poor computer accounting program, you may get away with it. It might be OK on a one time "oops" basis, but I wouldn't be doing this over and over again --- some red flags have got to be going up at some point, and it's really is kind of low.