What Happens If I Buy Something With a Gift Card and Return It?
Returning an item bought with a gift card? Learn how retailers typically process refunds and what to expect.
When returning an item purchased with a gift card, consumers often encounter different refund procedures than with other payment methods. Retailers typically have specific policies regarding how refunds are issued for purchases made using gift cards, which can differ from their standard return guidelines for credit card or cash transactions. This article explores the common outcomes and considerations when an item bought with a gift card is returned.
Standard Return Outcome
When an item purchased entirely with a gift card is returned, retailers most commonly issue the refund in the form of store credit or a new gift card. This practice ensures that the monetary value remains within the retailer’s ecosystem, encouraging future purchases from the same store. For instance, the original gift card might be reloaded with the refunded amount, or a new gift card might be issued.
Issuing cash refunds for gift card purchases is generally avoided by retailers for several reasons, primarily to mitigate fraud and maintain financial integrity. This policy also helps prevent potential schemes where individuals might purchase gift cards using fraudulent means, such as stolen credit cards, and then attempt to return items bought with those gift cards for cash, effectively laundering money.
Returns Involving Multiple Payment Methods
Situations sometimes arise where a purchase is made using a combination of a gift card and another payment method, such as a credit card or cash. In these instances, retailers typically prioritize refunding the portion paid by the non-gift card method first. For example, if an item costing $100 was paid for with a $50 gift card and a $50 credit card, and the item is returned, the $50 initially charged to the credit card would generally be refunded back to that same credit card. This aligns with the common practice of refunding to the original payment tender whenever possible.
The remaining portion of the refund, which was covered by the gift card, would then typically be returned as store credit or a new gift card. This means the consumer would receive a split refund: part back to their credit card or in cash, and the other part on a gift card. This ensures that the funds originally received by the retailer through the gift card purchase remain within the store’s system. For example, if a $75 item was paid with a $50 gift card and $25 in cash, a return would likely result in $25 cash back and a new $50 gift card or store credit.
Understanding Retailer Specific Policies
While general practices exist for gift card returns, specific retailer policies can vary significantly. Each store establishes its own set of rules regarding return eligibility, refund methods, and timelines. These policies are often influenced by the type of merchandise, the store’s operational model, and its approach to customer service. Some retailers might offer a longer return window, while others may have stricter conditions for item eligibility.
To determine the exact return policy for a particular store, consumers should consult the retailer’s official resources. Checking the back of a purchase receipt often provides a condensed version of the return policy. More comprehensive details are usually available on the retailer’s website, typically in a dedicated “Returns” or “Help” section.
Alternatively, contacting customer service directly or inquiring at a store’s service desk can provide clarity on specific scenarios, including those involving gift cards. These resources can also provide information on common variations, such as specific time limits for returns, requirements for the item’s condition (e.g., unopened packaging, tags attached), or exceptions for certain product categories like electronics or final sale items.