Credit Cards Center Credit cards from our partners
Reply
New Member
Posts: 4
Registered: ‎06-25-2012
0

Is this wrong?

So a couple of hours ago, I ran into an old buddy at a local bar and figured I buy him a drink since I haven't seen him since high school. When I pulled out my CSP to pay for the drinks he mentioned that he had the same card as I did and told me a very interesting way he "spent" $3000 to earn the 40k points. He began by telling me how he used to work at Nordstroms and explained to me their VERY lenient return policy. So lenient that you can basically return anything that was purchased at any Nordstroms store even if you don't have the receipt. ALL of his purchases were made online for 2 reasons, save one trip to the mall and to not screwing over a sales associate with their commission. Now this is the part that really caught my attention, he informed me that you can also have the money returned to your debit card(with no fee) even when you purchased the item with your credit card. So basically what he did was; buy something at Nordstroms for $3000, returned it to his debit card, then pay off the $3000 balance on his CSP and earn his 40k points with no money spent.

 

I know that this is flat out wrong but at the same time it makes me wonder on how much points I can accumulate Smiley Tongue

 

Just thought I'd hear peoples opinion about this!!! BTW if this is old news... I'm sorry in advanced

Established Contributor
Posts: 653
Registered: ‎01-31-2013
0

Re: Is this wrong?

When I was a teenager, I worked for a local gas station chain that prophecized the end of the universe whenever someone even mentioned giving a cash refund on a credit card transaction.  Something about illegal cash advances.  However, the functionality was still there.

 

I'm now working at Walmart.  When someone returns something and it was paid for with a credit card, we still have the capability to give the refund in the form of cash.  The supervisors say we're not supposed to, but it's not something they go out of their way to enforce (I'm in the far corner of the store anyways).

 

I guess my point is that it can be done, but the ethicality of the doing so would be shaky at best.

   
FICO Scores 800+
Valued Contributor
Posts: 1,987
Registered: ‎06-25-2012
0

Re: Is this wrong?

When i returned something at nordstrom they asked to see the card i used to pay. This was last week
Amex BCE (2500) / Amex SPG (4000) / Amex GoldPR / Merrill+ Visa siggy (5000) / BofA Amex (6000) / Bofa cash rewards (5000) / BofA Privileges Cash Rewards (5000) / Citi Forward (4400) / Citi DP (2000) / Chase Freedom (4000) / Chase CSP (5000) / Chase Hyatt (5000) / Discover IT (1700) / FNBO AMEX (3600) / NFCU cashRewards Visa signature (15000) / NFCU Flagship Visa signature (12500) / NFCU Navcheck (5000) / Nordstrom (500) / MetroCU Visa Elite (5000) / Walmart (4500) / Kays Jewerels (6600) / Kohls (300) / Macys Platinum (2500) / DCU platinum Visa (17500) / Citizens bank cash back (1100) / Bill Me Later (1631) / PayPal Smart connect (2200) / BestBuy store card (2000)
Valued Contributor
Posts: 1,084
Registered: ‎02-06-2013
0

Re: Is this wrong?

     This forum holds itself to a higher standard than other sites. Thus advocating doing things that are "flat out wrong"  is frowned upon around here. There are all kinds of fraud out there in the world and some of them probably work but that is information best shared somewhere else. I am not trying tobe a buzz kill. I f you aren't sure if you should do something or not, maybe apply the grandma test. Would your grandma do this? Would you do this with your grandma in the store? Just cause you can get away with something doesn't mean it is ok to do. But you already know that. Everyone has a little voice in their head. It is their conscience. Listen to what it tells you and act accordingly and you will go through life with much fewer problems.. Smiley Happy

259/21001600/16002400/25002000/2000,2013 Scores (Initially none cause I had no credit at all then TU:519 Recent scores:FICO EX 632,EQ 635,TU 659....Link to my Rebuild Log
Regular Contributor
Posts: 249
Registered: ‎12-24-2012
0

Re: Is this wrong?


Leadberry wrote:

When I was a teenager, I worked for a local gas station chain that prophecized the end of the universe whenever someone even mentioned giving a cash refund on a credit card transaction.  Something about illegal cash advances.  However, the functionality was still there.

 

I'm now working at Walmart.  When someone returns something and it was paid for with a credit card, we still have the capability to give the refund in the form of cash.  The supervisors say we're not supposed to, but it's not something they go out of their way to enforce (I'm in the far corner of the store anyways).

 

I guess my point is that it can be done, but the ethicality of the doing so would be shaky at best.


Agree 100%.

 

While not illegal, it certainly is not ethical.  Assuming the store pays 3% in credit card processing fees, he's "stealing" $90 from the store.

Senior Contributor
Posts: 3,070
Registered: ‎11-02-2009
0

Re: Is this wrong?

I agree that this is wrong.  Returns cost a company to process.  It's great when certain vendors have generous return policies.  Abusing those policies is more likley to cause them to change the policy.  Why stop with hitting your minimum spend when you can buy and return things all year round to earn more points.  Like people buying $50K engagement rings at Costco and getting a cash refund. 


Starting Score: ~500 (12/01/2008)
Current Score: EQ 681 (04/05/13); TU 98 728 (01/06/12), TU 08? 760 (provided by Barclay 1/2/14), TU 04 728 (lender pull 01/12/12); EX 742 (lender pull 01/12/12)
Goal Score: 720


Take the FICO Fitness Challenge
Valued Contributor
Posts: 2,039
Registered: ‎01-24-2012
0

Re: Is this wrong?

When a shop processes a refund they get any fees attached to that transaction refunded; whether they refund in cash or to a card.

 

I wouldn't do this with a debit card, because some banks will wonder why a credit was put through when there is no transaction to match. They could see it as money laundering.

 

I don't see this as unethical since it isn't hurting the business. They wouldn't have this option if it cost them money. It probably is a way to quickly get you banned from the place or have your return privileges revoked if you do it frequently.

 

I remember people buying electronics from Costco, using them all year, and returning them right before the one year for returns was up. That is unethical.

Senior Contributor
Posts: 3,070
Registered: ‎11-02-2009
0

Re: Is this wrong?


navigatethis12 wrote:

When a shop processes a refund they get any fees attached to that transaction refunded; whether they refund in cash or to a card.

 

I wouldn't do this with a debit card, because some banks will wonder why a credit was put through when there is no transaction to match. They could see it as money laundering.

 

I don't see this as unethical since it isn't hurting the business. They wouldn't have this option if it cost them money. It probably is a way to quickly get you banned from the place or have your return privileges revoked if you do it frequently.

 

I remember people buying electronics from Costco, using them all year, and returning them right before the one year for returns was up. That is unethical.


I think you're taking too narrow a view.  There's more to processing a return than CC transaction fees.  They have the option even though there are costs associated because it provides customers with peace of mind which makes them an attractive option compared to a store that doesn't have such an easy return policy.   


Starting Score: ~500 (12/01/2008)
Current Score: EQ 681 (04/05/13); TU 98 728 (01/06/12), TU 08? 760 (provided by Barclay 1/2/14), TU 04 728 (lender pull 01/12/12); EX 742 (lender pull 01/12/12)
Goal Score: 720


Take the FICO Fitness Challenge
Valued Contributor
Posts: 2,039
Registered: ‎01-24-2012
0

Re: Is this wrong?


Walt_K wrote:



I think you're taking too narrow a view.  There's more to processing a return than CC transaction fees.  They have the option even though there are costs associated because it provides customers with peace of mind which makes them an attractive option compared to a store that doesn't have such an easy return policy.   


I understand that they have to put it back into inventory and back into the system. If the item is open then it is a different story. Returning a new item is not a big deal to a shop, except that they don't have the money anymore. As noted, they will block you from doing this if you do it too much. Shops round here have a maximum, usually less than $100, they will refund in cash if paid by card. They even say it's easier to refund in cash then doing it by card.

Frequent Contributor
Posts: 272
Registered: ‎10-04-2009
0

Re: Is this wrong?


navigatethis12 wrote:

When a shop processes a refund they get any fees attached to that transaction refunded; whether they refund in cash or to a card.

 

 

 

No, they don't. Not on credit cards processed through normal business merchant accounts. In fact, they pay more. New swipe fees (far lower) and transaction fees to process that refund.

 

PayPal and other places like that reffees much of the fees, but not your normal merchant account.

Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.

Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
† Credit cards for FICO Score ranges: The score ranges are guidelines based on internal myFICO analysis of actual applicant approvals, and having a FICO Score in a particular range does not guarantee you will be approved for credit cards recommended in that range. These ranges were not provided by any card issuer.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.