Is a store allowed to refuse gift card for payment due to a discount on purchase?
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Is a store allowed to refuse gift card for payment due to a discount on purchase?
I received a corporate gift card from a well known furniture company, due to receiving damaged merchandise. I was offered a $250 refund or $500 gift card, I accepted the gift card. Fast forward 2 years later, I called corporate to verify that I can still use the card. Their response was yes, it is same as cash. I went back to the store, bought several pieces and negotiated a deal for the numerous pieces. When it came time to process payment, I gave them the gift card and the manager refused to take the card. His reasoning was that he discounted the furniture enough and he wasn’t discounting it anymore. I explained to him that it is a gift card and to be treated same as cash. Corporate had already emailed the store to let them know I would be coming in and that it is an authorized card but he refused to accept it. Is this legal? If not, what can I do. This is my second attempt to use this card and have had problems both times.
Asked on June 21, 2019 under Business Law, California
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 5 years ago | Contributor
It is not legal, because you accepted the gift card as compensation for damaged merchandise with the understanding it had no restrictons on it. To impose restrictions now violates the agreeement between you and the corporartion.
But there is nothing worthwhile to do other than complain to management or the corporate office. To force the store to accept the card would require a court order--that is, you'd have to sue. You'd spend more time and effort and potentially money (if you had to, for example, fly in a witness from corporate to testify as to what the arrangement or circumstances were) than it is worth.
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