Apple Refund - Credit/Debit Card Swap - YMMV
Oct 8, 2014, 7:40 am
#1
Original Poster
Join Date: Mar 2013
Posts: 19
Apple Refund - Credit/Debit Card Swap - YMMV
Use Case:
Day 1: Purchased iPhone 6 at full price (no contract) at Apple Store in NYC. I split the payment as follows: $500 charged to my credit card, remainder ($420) charged to my debit card (linked directly to checking account).
Day 9: Returned iPhone 6 to store, and employee said that she could not refund both cards, only one. Employee refunded full amount ($920) to my debit card.
Result = $500 of manufactured spending.
If this can be replicated, I imagine the manufactured spending is limitless.
Good luck.
Day 1: Purchased iPhone 6 at full price (no contract) at Apple Store in NYC. I split the payment as follows: $500 charged to my credit card, remainder ($420) charged to my debit card (linked directly to checking account).
Day 9: Returned iPhone 6 to store, and employee said that she could not refund both cards, only one. Employee refunded full amount ($920) to my debit card.
Result = $500 of manufactured spending.
If this can be replicated, I imagine the manufactured spending is limitless.
Good luck.
Oct 8, 2014, 1:12 pm
#6
Join Date: Jun 2013
Posts: 15
If a return is made to your card larger than the original purchase price that is asking for problems. I had two returns from sears attempted to go to my credit card that were so large that Citi rejected the return, sears thought the return went through and I was out hundreds for a couple months. Good luck anyone that tries this, but no thanks.
Last edited by willhernandez; Oct 9, 2014 at 10:26 am
Oct 8, 2014, 2:55 pm
#9
Join Date: Feb 2012
Posts: 4,477
If a return is made to your credit card larger than the original purchase price that is asking for problems. I had an two returns from sears attempted to go to my credit card that were so large that Citi rejected the return, sears thought the return went through and I was out hundreds for a couple months. Good luck anyone that tries this, but no thanks.
Oct 8, 2014, 4:15 pm
#10
Original Poster
Join Date: Mar 2013
Posts: 19
No questions asked at all. For the record, this was unintentional. I had a big month on this particular credit card and was near my credit limit, so didn't want to go over.
Oct 9, 2014, 9:32 am
#11
Join Date: May 2006
Location: Melbourne, Florida, USA
Posts: 2,983
There have multiple reports where both real banks and prepaid debit cards are watching for these kind of returns that exceed the purchase that was put on them. It may not seem a big deal to us, especially when outside of MS, but the banks for some reason get very upset by it.
Oct 9, 2014, 12:31 pm
#12
Formerly known as FTRox87
Join Date: Sep 2012
Location: TX
Programs: AA/US 1M, AS, BA, CX, EK, EY, JL, KE, LH, NH, OS, QF, QR, TG, UA/CO | *$G
Posts: 1,428
yes because in most cases they have to pay back in full for swipe and interchange fees that they did not collect on the full purchase price.
its a zero sum game... this sorta MS is directly costing somebody (your bank), a shiny penny -- they are in essence subsidizing you and paying you for business you did not earn.
so you can bet your bottom dollar if you do this more than once, your banks algo's are gonna pick that up real quick. and you dont wanna be fired by your primary bank for 500 or 1000 miles or $10 in CB. even if it doesnt go on your chex report.
its a zero sum game... this sorta MS is directly costing somebody (your bank), a shiny penny -- they are in essence subsidizing you and paying you for business you did not earn.
so you can bet your bottom dollar if you do this more than once, your banks algo's are gonna pick that up real quick. and you dont wanna be fired by your primary bank for 500 or 1000 miles or $10 in CB. even if it doesnt go on your chex report.
Oct 9, 2014, 3:17 pm
#13
Join Date: Feb 2012
Posts: 4,477
yes because in most cases they have to pay back in full for swipe and interchange fees that they did not collect on the full purchase price.
its a zero sum game... this sorta MS is directly costing somebody (your bank), a shiny penny -- they are in essence subsidizing you and paying you for business you did not earn.
so you can bet your bottom dollar if you do this more than once, your banks algo's are gonna pick that up real quick. and you dont wanna be fired by your primary bank for 500 or 1000 miles or $10 in CB. even if it doesnt go on your chex report.
its a zero sum game... this sorta MS is directly costing somebody (your bank), a shiny penny -- they are in essence subsidizing you and paying you for business you did not earn.
so you can bet your bottom dollar if you do this more than once, your banks algo's are gonna pick that up real quick. and you dont wanna be fired by your primary bank for 500 or 1000 miles or $10 in CB. even if it doesnt go on your chex report.
In our case the banks act as a cartel, and defend their competitors from their own customers. They are protecting the industry while incurring a small cost in the process.
Oct 9, 2014, 5:57 pm
#14
Join Date: Sep 2013
Posts: 829
I have a better idea for OP:
Buy the diamond ring at costco.com with your Visa http://www.costco.com/3.05-ct-Round-....11679071.html
return it to the store and get cash.
it is not MS.
it is cheating IMHO.
Buy the diamond ring at costco.com with your Visa http://www.costco.com/3.05-ct-Round-....11679071.html
return it to the store and get cash.
it is not MS.
it is cheating IMHO.
Oct 9, 2014, 6:08 pm
#15
Join Date: Jan 2014
Location: Chyona
Programs: Anywhere I can ski...
Posts: 401
There is a small problem with the self-interest argument though. The bank receiving a credit (and taking action against your account), is not the one that originally paid the swipe fees, etc.
In our case the banks act as a cartel, and defend their competitors from their own customers. They are protecting the industry while incurring a small cost in the process.
In our case the banks act as a cartel, and defend their competitors from their own customers. They are protecting the industry while incurring a small cost in the process.
