sparksals

Sorry. Not everyone here churns but still finds the travel and other info helpful here. I'm sure some would be happy to know they can get a credit on the proper c/c rather than hunks of cash in refund when they don't want to carry so much.

sparksals

There are people who wildly abuse the Costco return policy.. or lack thereof. When we lived in Tucson, we bought a very inexpensive patio set... table and 4 chairs. Great quality. Moved to the TC's, wind storm knocked over the table, glass shattered. Went back to Costco to buy a new table and the guy helping me out told me I should have returned the table. I told him it was my fault it broke (umbrella was still up, it stuck, we couldn't get it down before a freak storm hit). He said it didn't matter. I could bring back the frame and get a full exchange. No questions asked. It just wouldn't cross my mind to do that.

I have returned a few things almost a year later... like a humidifier that konked out before the end of the year warranty.

I will buy at Costco if I can get it b/c of the return policy. Plus, they double manufacturer's warranty on Electronics to two years. Can't beat that.

EasternTraveler

Actually it is up to us to judge whether something is ethical or not!

Society determines ethics and morals historically by shunning someone for doing the wrong thing. When we as a society stop telling people what is not right or stop reacting to bad behaviour, then we can ride the slippery slope to the bottom.

"I can print a ticket and hack the server to make the ticket valid. Where would you make the ticket for?".."I know someone that works for the airline that can give me ecredits on my account."... "My cousin gives me a ff bonus every month for different amounts from 10k to 20k." All are wrong!

It is not right to stick a business with 3% or more in cost, just so you can get a few miles or more. Whether that be a large business that can take a pretty good bit of loss before faltering or a small mom and pop that would be devastated by such horrible behaviour.

So ask the question and accept what you get. Along with people telling you that it is unethical.

koctail

so what would u suggest we do with the person who started this thread...the rack or maybe public stoning for his unethical question. im really surprised at those of you who come to the support of corporate america on issues such as this. If Costco doesn't want someone to take advantage, then they should change their policy, as they have done on some electronics. A very small % of society is always going to try and get one over. If they can more power to them, but always beware that there may be repercussions.

I will start judging others when I am 100% perfect....

Steve in Olympia

Yes, if a store like Costco offers a very liberal return policy, we should all take advantage of it to the greatest extent possible, and abuse it as much as possible. What else does Costco expect when they foolishly expect their customers to reciprocate with trust and fairness?

And please, when a fellow FTer posts a mileage scheme that seems to be lacking in basic honesty, don't burst his/her bubble by pointing out the ethical vacuum. After all, if the airlines don't appreciate a certain percentage of cheaters, they can simply quit providing mileage awards.

After all, nobody's perfect, so why bother trying?????

rajuabju

Well, as a "test" I bought a diamond ring using a Visa card from costco.com (roughly a $1900 purchase).

Returned it in store, got the cash, deposited in bank, paid the cc bill, got the miles.

I asked an assistant manager regarding their return policy, and she said that she "thinks" the maximum cash they return at a time is around $5,000... more then that and they would have to issue you a check back and mail it to you. But she couldnt tell me exactly... I didnt want to wait around to really find out since its not something I plan to do.

So while this "works" ... I still dont think its a great idea to rack up massive points/miles. As I had said in a prior post, if someone is in a pinch and has a deadline to meet a spend requirement, it might be ok, but returning thousands of dollars in merchandise regularly would surely raise a red flag at Costco, besides the ethical issues that I dont want to get into.

Still, its an interesting discovery.

kapmap

Something many people are not aware of is that the retailer pays the AMEX fee even if you return a purchase -- I don't believe this is true on Visa or MC.

I have a client that sells large ticket items -- had a piano sale of $10,000 on AMEX but the purchase cancelled the sale before delivery and the $10.000 was refunded -- the retailer originally received around $9.700 and was charged the full $10,000 for the refund. When I called AMEX about it and questioned it they told me that was the way they worked -- the fee is charged period. That was a lot to absorb for a small business person.

That said, I am pretty sure a store like Costco or Macy's does not pay the standard 3.1% charge from AMEX -- they are large enough to negotiate that fee down -- but they may still be paying their percent of the transaction fee. So your purchasing and returning a $5,000 item just to get miles costs the club $50-$150 and the other members essentially pay it.

I use my AMEX religiously but try to consider the small retailer if I am purchasing and returning and the cost to them --

yoyo

OT.

I was under the impression retailers pay for returned Visa and MC purchases too. I paid some summer classes a week ago with MC before I got into the AMEX Starwood card 30K promotion deal. I called the school secretary asking her if it is possible to revert the charge on MC and recharge onto my AMEX card. She said no problem but an hr later I got a call back from her. She said her boss told her that it will actually incur additional cost to school, i.e. they pay both MC and AMEX transaction fees. She asked me to reconsider. I did not insist on my request even they still allow me to refund the classes.

Jaimito Cartero

If you're a big retailer you get great deals. If you're a smaller one, not so much.

I pay percentages on both sides of a transaction. I'm not in a business that really accepts returns, so luckily it's not too bad for me. However, all of the credit cards work the same. Amex/Visa/MC/Discover. You get dinged both ways.

carsonheim

sigh... i wish there was a costco within 2 hours of me. but alas, there is not. I even have to get my fellow FTers to pick up the Hyatt certs for me and then reimburse them when we meet up for MRs together!

4now

like I suggested back in May; foolish behavior could lead to getting your membership cancelled. Costco is not in business to take a loss.

DeirdreTours

To intentionally buy online via credit card and return in store for cash purely to collect the points can't be anything but fraud. It may not be provable or prosecutable, but the intent is fraudelent. It is stealing the processing fees from Costco.

I love collecting points and miles.....but this is clearly way over the ethical line.

mrpickles

I agree, it crosses the line.

Edited: After an extensive chat with the director of Loss Prevention at Costco.com she convinced me that they do not have a problem with merchandise being returned as they pay 0% discount for mc and visa at their online store. YMMV.

I asked her if this ment that she was basically saying that this was ok to do for miles she told me that I might just like and keep what I order online. Who am I to pass up an opportunity?

koctail

To intentionally obtain a credit card or open a checking account just for the bonus miles knowing beforehand you will cancel after 6 months costs Chase,
Citi, AMEX, etc $$. Is that unethical too? Where is the line drawn?

I would only use the Costco option if I was absolutely desperate to hit a spending maximum for a bonus. There are other options such as buying Costco Cards that have no fee/shipping. Remember though also that Costco is a membership club with an annual fee. They are not a traditional retailer.

This is not fraud. It is very legal. Does Costco have a trigger for looking at your account for multiple returns? Possibly? I agree buyer beware.

cepheid

Buying something with the sole intention of returning it, especially (but not necessarily) if you intend to use it, is called "return fraud." It is illegal in some (or possibly all) states.