Refunding to a debit card (credit card, purchase, tax)

[Dadschum]

Today I went to Michael's art and craft supply store to return an item valued at $6.99 that I bought before Christmas. The item was purchased with my debit card. The clerk rang up the return and handed me cash. I said " can't you apply it back to my card?" She said she could not do that for debit cards because it means they have to have access to your back account.

As I told the clerk, every other store on the planet refunds back to a debit card. I carry $20 cash in my wallet and do all of my other shopping transactions on my debit card: groceries, Target, Walmart, Job Lot, Christmas Tree etc. Over the past few weeks I have made returns at all these places and none handed me back cash. The returns were all applied back to my debit card and I saw the returned funds in my back account later that day or the next day.

I have never heard of this before. What's up with Michael's not refunding back to a debit card?

[robr2]

They probably have a policy to give cash refunds on debit purchases under a certain amount. I'm guessing they don't want to pay the fee that will be assessed to process a $7 refund.

[bostongymjunkie]

Out of curiosity, why is this a problem?

[msRB311]

It’s been a while since I’ve made an in person return using my debit card. I do it frequently online and the funds are always returned to the card. What you are does seem kind of strange. I’d prefer the funds go back to the card but hey cash is king. You could just deposit the cash at an atm.

[Dadschum]

It's a problem because I use my debit card for 98% of my transactions and keep a close eye on my bank account. So to not have the money go right back to my account to replenish it does not seem right. Yes I know the amount was negligible but still - it should go right back to my account.

And frankly, I am not going to take the time to go to the bank to deposit 7 bucks. That is an inconvenience to me that is unnecessary and could have been avoided by just refunding the debit card. And with Covid. going to the bank or ATM is just another risk I want to avoid.

The money came out of my bank via debit card. there is no reason it should not go back the same way. And if Target, Walmart, Christmas Tree, Job Lot, Macys and most other stores can do it, why not Michaels?

No one has given me a plausible reason why this happened except possibly Robr2 who said they may not have wanted to pay a transaction fee on $7. If I was returning an item for $10, $20, $50, $100 would they have returned the funds to my debit card? And if that is the rule, then it should have been posted at the register and she should have pointed me to that rule.

But that still does not hold water when other stores will do it no matter the dollar value of the item.

[bostongymjunkie]

I use a rewards credit card for everything and pay it at the end of the month, so I rarely use the debit anymore except to get cash at ATM. I seem to recall this being an issue with debit cards a while back, but mostly with the ones that did not have a Visa or MC logo.

[CaseyB]

This is from Michael's website:

Refunds:
The appropriate tax amount by item will be included with your refund. Original shipping and handling fees (if applicable) may be deducted from the value of your refund unless the return is a result of our error. Refunds will be issued in the same form as payment originally used for purchase except as specified below:

Purchases made with a debit card will be refunded as cash.

A Store Return Card will be issued for all purchases made using a gift card or gift receipt/purchases.

I guess it didn't matter that the refund was only 6.99, they always refund via cash when a debit card is used.

So now you know and if it bothers you, then don't shop there.

[Dadschum]

Thanks I guess it is their policy. I have probably shopped there 3 times in my life so I guess I won't be giving them my money ever again. Plus it is not a place that has items I typically need so I won't miss it.

It may be their policy but what is more perplexing is that no other place I patronize does this. So their excuse that they can't do it because they are going into my bank account is BS. If Target, Walmart and Macy's can do it - they can too.

[johngolf]

Originally Posted by Dadschum

Today I went to Michael's art and craft supply store to return an item valued at $6.99 that I bought before Christmas. The item was purchased with my debit card. The clerk rang up the return and handed me cash. I said " can't you apply it back to my card?" She said she could not do that for debit cards because it means they have to have access to your back account.

As I told the clerk, every other store on the planet refunds back to a debit card. I carry $20 cash in my wallet and do all of my other shopping transactions on my debit card: groceries, Target, Walmart, Job Lot, Christmas Tree etc. Over the past few weeks I have made returns at all these places and none handed me back cash. The returns were all applied back to my debit card and I saw the returned funds in my back account later that day or the next day.

I have never heard of this before. What's up with Michael's not refunding back to a debit card?

How come so many returns?

[CrowGirl]

Originally Posted by Dadschum

Thanks I guess it is their policy. I have probably shopped there 3 times in my life so I guess I won't be giving them my money ever again. Plus it is not a place that has items I typically need so I won't miss it.

It may be their policy but what is more perplexing is that no other place I patronize does this. So their excuse that they can't do it because they are going into my bank account is BS. If Target, Walmart and Macy's can do it - they can too.

That sounds like an excuse that has somehow been passed along from employee to employee to explain but has no basis in anything. Who knows the real reason. When I see that sort of odd and very specific policy I usually think they must have gotten burned somewhere along the way and adopted this as a result.