New Policy:Can't buy Gift Cards with Credit Card any more?

[lorken]

I went to take advantage of the GC promo last week at my local SDM in NW Calgary. Picked up $200 in GC's along with a couple of other items, but when I got to the register they would not let me pay for the GC's with a Visa card. They said Head Office had made a rule a couple of weeks ago that GC's MUST be paid with either cash or debit card. I said I was surprised, since I had always used my credit card to buy gift cards, but they were adamant about it - they would NOT let me use a credit card to pay for gift cards. They pointed out that there was a sign on the GC rack - I looked and it was a tape label (made with a label maker) saying all gift cards can only be purchased using cash or debit card. So I left the GC's there, didn't buy them.

Luckily, there are at least 4 other SDM's fairly close by me, so I went to the next closest one and had absolutely no problem buying the gift cards with my credit card. Since I was a bit put off, and I had already decided I wanted to go for the gift card bonus 2 more times, I decided to go to two other SDM's to test the policy. Lo and behold, I had no problem using my credit card to buy gift cards at either of them too.

So what gives? My local SDM said it was a policy decreed by Head Office, and that any other SDM that lets me use a credit card is breaking policy and will "get in trouble with head office". Yet the other SDMs had never heard of this so-called policy. Has anyone else encountered this?

[torontogal12]

It's always depended on the location for me. Try another

I think they are protecting themselves from fraud and money laundering from stolen credit cards

[d.ot]

I participated in this year's GC promo - paid with a credit card and had no issues. There was nothing on the display rack either...seems a little fishy to me?

[LimeFizzy]

It's up to them. It helps curb fraud for them.

I know a store that always checks ID when buying $200 or more in gift cards all year. That's their way of being safe.

[lorken]

Thanks all...Yes, I guess my local store must have been burned enough that they changed the policy. Glad to know others have encountered it too - I felt kinda stupid when they told me I couldn't use a credit card!

It was particularly frustrating because I always buy SDM gift cards for myself at this store to use later at the same store (I maximize points that way: Purchase SDM gift card using a points Visa card, so I get both SDM and Visa points on the purchase. Then I use the SDM card for my regular SDM purchases, and get more SDM points from it!)

Luckily, there are many other SDMs near me, so I will just change my shopping habits and go to them.

[Ciel]

It's like other SCers encountering store policies at one location that don't seem to apply to other locations-likely a pharmacist-owner rule/policy that trumps the HQ one.
Glad you were able to get your gift cards after that effort. I'm thinking that maybe paying a debit transaction fee (50 cents or so) is cheaper on the store's bottom line than 2% or whatever it is ($4) of the gift cards' value to merchant processing services could be another factor besides the fraud issue.

[momof3heathens]

I'm fine with stores having their own policy but why not just say "I'm sorry but this location's policy is..."rather than saying head office.

[jsmile]

I encountered this last year. I wrote to head office and they got back to me and said it is to the discretion of the of the store if they only want to accept cash/debit. Some stores have implemented that it must be chip credit cards. I am okay with stores looking at my ID but I will not allow stores to write down my information (look at the trouble that happened at Target, Home Depot, etc.).

Head Office contacted the local store and the head cashier offered to let me come in again and purchase a gift card, but I declined their offer. I wasn't going to waste the gas to go back to a store that refused my business in the first place. No benefit for me. Now that specific store has lost all of my business.

When it comes to credit card fraud or gift card fraud, it is a part of doing business. Every business from large Home Depots to mom and pop stores have to deal with fraud. I understand that they are trying to protect themselves but at the same time, it is a cost of doing business.

[sisyphe]

I paid with Mastercard at 3 different Shoppers. No issues, other than at the third location they had trouble getting 2 of my gift cards activated and when they called the supervisor over she wanted to look at my credit card to make sure the name matched the name associated with my optimum account. She said it was for security purposes, which maybe she was suspicious about the cards not activating, but I don't know why they'd care about the credit card name matching my optimum account name unless they were really just worried about people using multiple optimum cards to do the promo more than 3 times.

[lizzie bargain]

My DH and I each bought $200 3 times using his credit card. No problem with SDM but on the 5th transaction his credit card would not allow any more transactions so we just used another. When we got home the cc company was phoning to verify all the charges were his-he said yes and he had to use another card after he was cut off and the credit card guy said-I guess we lost some businees then! I guess the cc company was suspicious of the activity and worried about fraud.

[Ciel]

It'd be a courtesy to customers for each store with its own policies to have a large print policy sign near cash or the wall closest to cash area, since many people will be gift-shopping/impulse shopping/buying for work or social gatherings. usually the Ministry of Consumer Affairs advises shoppers to read the store policies first for refund/exchange information but some stores are really pushing the patience buttons on shoppers who need to get their goodwill maintained while getting out the door-how many places actually have legible policies posted in plain view in the stores? Best Buy has a hanging sign over cash. Home Depot has signage at the returns desk.

Tiny signs and handwritten signs are not going to help.

[fusionx]

They won't have a sign as they aren't allowed to have such a policy. Call mastercard or visa to verify. Shoppers has already been told to stop there stores from rejecting credit cards. Their merchant agreement with the credit cards requires them to take all cards for all tansactions