Beware Apple Store Online with trade-in and using Apple gift card

[Davidchicago]

Beware if purchasing anything from the Apple Store online with a gift card balance and trade in, that when your trade in is credited, it will be credited back to the gift card balance first and not your credit card. I purchased a new MacBook Pro 16 and used $598 in gift card balance from my Apple ID to help pay for it and traded another MacBook. As a "refund" for the trade-in, Apple put the $598 balance back on my Apple ID before crediting the balance of the trade-in amount to my credit card account.

Now I'm told they'll "consider" my request to have the Apple ID balance credited back to my credit card. Meantime although I intended to use the gift card balance to help pay for the new Mac, that hasn't happened and I have to pay my credit card company that $598 so Apple can hold on to it! it's almost funny!

Apple customer service explained, just as innocent as can be, that the refund for the trade in is always returned to the original form of payment. What?! As though they were returning it to another credit card account. So in the end, I wasn't able to use the gift card balance? It's right back where it was in the first place in my Apple account, funded 100% by my money?! I can't believe Apple puts this insulting explanation out there.

When I said if that was right, how come that would never have been done that way if I'd gone into the store? I said imagine going into the store and using a gift card for $598 with a trade in and being told you'll be paying the full amount after trade in and be handed a $598 gift card at the end? Finally they had no answer.,

I'll never trade in online with them again. Go into the store!

 

[jtopp]

Yeah I wouldn't have even considered mailing my MacBook in trade, I took mine to the store because you never want to get money taken off from whoever they outsource the trade in through or problems with the transaction.

 

[usagora]

So, my understanding is you bought the MBP using 1. gift card balance + 2. credit card, and then the value of your trade-in was applied to your gift card balance. So you WERE able to use the gift card balance, because all you paid at the time of checkout was the cost of the MBP MINUS $598, right? You didn't pay the full cost of the MPB on your credit card. So your complaint is really that you would rather have the trade-in value credited towards your card instead of refilling your gift card balance. Assuming you're not planning on making any additional Apple purchases in the near future, I can definitely sympathize with you on that. Hopefully they'll make it work for you.

 

[Davidchicago]

So, my understanding is you bought the MBP using 1. gift card balance + 2. credit card, and then the value of your trade-in was applied to your gift card balance. So you WERE able to use the gift card balance, because all you paid at the time of checkout was the cost of the MBP MINUS $598, right? You didn't pay the full cost of the MPB on your credit card. So your complaint is really that you would rather have the trade-in value credited towards your card instead of refilling your gift card balance. Assuming you're not planning on making any additional Apple purchases in the near future, I can definitely sympathize with you on that. Hopefully they'll make it work for you.

Well I just paid off the credit card last night. So I purchased an Apple gift card for myself for $598. Thank you.

 

[usagora]

Well I just paid off the credit card last night. So I purchased an Apple gift card for myself for $598. Thank you.

Ok, but my point was the original $598 did apply towards your purchase, so you WERE able to use the gift card. All you're saying is that they split the trade-in value credit between a gift card balance and your credit card, right?

So all you paid for your new Mac at the time of purchase was:

(cost of new Mac) - (gift card balance of $598)

Then after they received your trade in, they gave you the credit in the form of a $598 gift card + the balance of whatever your trade-in value was as a credit on your credit card.

Correct? So you DID save $598.00 on your new Mac up front and THEN you received additional credit from your trade-in in the form of 1. a gift card balance + 2. refund to your credit card. Your beef is simply that you didn't WANT another gift card balance and preferred to have the entire trade-in value refunded to your credit card, right?

 

[Weaselboy]

I'm with OP on this. The current policy makes no sense.

I recently went through this when I bought my 14" MBP. I used a $250 gift card and my CC then sent my old MBP in to trade. They processed the trade then sent me another $250 gift card and the balance was credited to my CC. It took me four long phone calls over three days to get it straightened out and get the $250 credited to my CC.

Under the current policy, if you trade in and use a gift card, you will perpetually own a gift card and never be able to get rid of it without calling and jumping through a bunch of hoops.

 

[KaliYoni]

The current policy makes no sense.

My guess is that Apple either is trying to save on credit card processor fees or the policy is an anti-money laundering measure. Given the way Apple has been run during the Tim Cook era, it's probably rooted in cost cutting.

----------
ETA: it could also be an accounting maneuver to make Apple's cash flows and balance sheet look better, but that would depend on the scale of Apple's rebate and trade-in programs.

 

[usagora]

I'm with OP on this. The current policy makes no sense.

I recently went through this when I bought my 14" MBP. I used a $250 gift card and my CC then sent my old MBP in to trade. They processed the trade then sent me another $250 gift card and the balance was credited to my CC. It took me four long phone calls over three days to get it straightened out and get the $250 credited to my CC.

Under the current policy, if you trade in and use a gift card, you will perpetually own a gift card and never be able to get rid of it without calling and jumping through a bunch of hoops.

I was simply pointing out that the OP is incorrect in thinking he wasn't able to use his original gift card balance:

"So in the end, I wasn't able to use the gift card balance?"

The issue is how the trade-in value is credited to the customer. And on that, I certainly agree Apple should provide an option at checkout for how you'd like to receive that (gift card vs. credit card refund).

But what I find super strange is not so much that they credit the trade-in value partly as a gift card, but that the amount of that portion is identical to the gift card amount you used on the purchase. Seems like they would simply credit the entire trade-in amount to a gift card balance (especially if their motive is to save on cc processing fees, as a poster above me suggested).

 

[Davidchicago]

I was simply pointing out that the OP is incorrect in thinking he wasn't able to use his original gift card balance:



The issue is how the trade-in value is credited to the customer. And on that, I certainly agree Apple should provide an option at checkout for how you'd like to receive that (gift card vs. credit card refund).

But what I find super strange is not so much that they credit the trade-in value partly as a gift card, but that the amount of that portion is identical to the gift card amount you used on the purchase. Seems like they would simply credit the entire trade-in amount to a gift card balance (especially if their motive is to save on cc processing fees, as a poster above me suggested).

Well imagine you went into the Apple store with a $500 trade in and a $500 gift card to purchase a $2000 item. You're thinking you've got $1000 off the new item and you're going to have $1000 left to pay. BUT Apple tells you no, you have to pay $1500 and we'll give you a $500 gift card to keep. Do you say OK?

 

[Marshall73]

Beware if purchasing anything from the Apple Store online with a gift card balance and trade in, that when your trade in is credited, it will be credited back to the gift card balance first and not your credit card. I purchased a new MacBook Pro 16 and used $598 in gift card balance from my Apple ID to help pay for it and traded another MacBook. As a "refund" for the trade-in, Apple put the $598 balance back on my Apple ID before crediting the balance of the trade-in amount to my credit card account.

Now I'm told they'll "consider" my request to have the Apple ID balance credited back to my credit card. Meantime although I intended to use the gift card balance to help pay for the new Mac, that hasn't happened and I have to pay my credit card company that $598 so Apple can hold on to it! it's almost funny!

Apple customer service explained, just as innocent as can be, that the refund for the trade in is always returned to the original form of payment. What?! As though they were returning it to another credit card account. So in the end, I wasn't able to use the gift card balance? It's right back where it was in the first place in my Apple account, funded 100% by my money?! I can't believe Apple puts this insulting explanation out there.

When I said if that was right, how come that would never have been done that way if I'd gone into the store? I said imagine going into the store and using a gift card for $598 with a trade in and being told you'll be paying the full amount after trade in and be handed a $598 gift card at the end? Finally they had no answer.,

I'll never trade in online with them again. Go into the store!

Bit cheeky of Apple.

 

[Davidchicago]

Yea, this is a simple cash preservation move. Now you can't decide to spend that elsewhere and for every customer who accepts this without a fight, Apple gets to keep the cash until you decide on your next purchase. Easily millions each year that they invest!

It's a questionable practice for a company that makes products that are loved by its customers. The hit to the confidence of their own employees alone is detriment enough to make it questionable, having to tell customers the money is "returned to the original form of payment" when they know very well that this is a trick of language. They know the original form of payment for that gift card balance was my cash!

 

[Davidchicago]

I'm with OP on this. The current policy makes no sense.

I recently went through this when I bought my 14" MBP. I used a $250 gift card and my CC then sent my old MBP in to trade. They processed the trade then sent me another $250 gift card and the balance was credited to my CC. It took me four long phone calls over three days to get it straightened out and get the $250 credited to my CC.

Under the current policy, if you trade in and use a gift card, you will perpetually own a gift card and never be able to get rid of it without calling and jumping through a bunch of hoops.

Good point! I said that to customer service as well. Does this mean that as long as I purchase online and have a trade in for a larger amount than the gift card balance, I will have to keep that balance potentially be for many years, as I do purchase every new model MacBook Pro as soon as they come out?

Still awonderful product by the way, which make me even more surprised Apple would take the risk to their reputation.

 

[usagora]

Well imagine you went into the Apple store with a $500 trade in and a $500 gift card to purchase a $2000 item. You're thinking you've got $1000 off the new item and you're going to have $1000 left to pay. BUT Apple tells you no, you have to pay $1500 and we'll give you a $500 gift card to keep. Do you say OK?

For some reason we're not communicating here. In the very post you quoted I explicitly said Apple should let the customer choose how they want to receive the trade-in credit. I'm simply pointing out that, contrary to what you seem to imply in your OP, you WERE able to use your gift card balance (the original one). So the issue isn't that you weren't able to use your gift card, but rather that you didn't want ANOTHER gift card as a result of the trade-in credit. I agree it's a strange policy, especially since they don't apply all of the trade-in value towards a gift card. Seems like it should be either ALL gift card or ALL credit card credit.

 

[TheIntruder]

Yea, this is a simple cash preservation move. Now you can't decide to spend that elsewhere and for every customer who accepts this without a fight, Apple gets to keep the cash until you decide on your next purchase. Easily millions each year that they invest!

It's a questionable practice for a company that makes products that are loved by its customers. The hit to the confidence of their own employees alone is detriment enough to make it questionable, having to tell customers the money is "returned to the original form of payment" when they know very well that this is a trick of language. They know the original form of payment for that gift card balance was my cash!

This applies to all gift cards, not just Apple's. And it's common for companies to bias refund policies to their benefit, whether in how they issue credits, and how long they take to do so.

The gift card (or in the old days, certificates) business is good, and was even better before when balances were allowed to be siphoned off over time, before regulators had to act in the face of consumer complaints.

Federal law doesn't permit balances to expire for five years, but inactivity fees can still be levied.

State laws also apply. Read the fine print, and know your rights.

Rebates, gift cards, no-interest financing, and other types of retail promotions offers are all laden with traps to snare the unwary. It can be dangerous to play a game without knowing all the rules.

 

[guitarguy19]

Currently looking at the same situation with the purchase of (2) iPhone 14 Pros.

I paid for all of my phone with cash, did a mail in trade in with my old phone, trade in back to credit card no problem.

We used a $500 Apple gift card to pay for HALF of my wife's phone, and paid the other $500 + with a credit card.

They just sent us $150 in apple gift cards for her trade in???? What the hell??

Seems to me they are running some serious BS here trying to avoid paying out trade ins in non-Apple money.

EDIT: Was a quick "1-800-apple" call and a quick fix for us...but annoying nonetheless.