Archived How Does POS Calculate Promo GiftCards?

[starmaster1000]

I'm trying to figure out how the guest paid what looks to me like for the item plus the promo gift card.

Can someone help me break down these numbers? It isn't adding up for me.

Video game: $274.99

• Regular price $299.99
• Buy 1, Get $25 GC

Promo Gift Card: $25.00

Subtotal: $299.99
8.25% tax on $274.99: $22.69

Total: $322.68

 

[BadWolf4531]

So when you purchase something with a GC offer, 'technically' you are purchasing the gift card and just receiving a discount in the same amount off the item itself. So, in your case, the item was $299.99, but they deduct the value of the gift card from this price, so it shows as $274.99. Then add back in the $25 GC and you are back at $299.99. Since cards aren't taxed, you are only being taxed on $274.99 though.

This way, if you were to return the item but had already used the gift card, you aren't cheating the system and getting the full amount for the item back.

 

[ISMike]

It also does the GC offer before % discounts are applied in my experience. eg.
$100 purchase, $10 gift card, 10% off:
$100-10=90*(1.00-0.10)=$81 price on the item. $81 is taxed @ 8.25% = $87.68+$10 gift card = a total charge of $97.68 for the item and $10 gift card.
And not $100*(1.00-0.10)=$90 -$10=80 * 1.0825% = $86.60 + $10 = $96.60.

For returns if the guest wants the full purchase back (in this case $322.68) rather than being stuck with a $25 GC they can return the physical promo gift card as well, in the same transaction. Supposedly it doesn't work with e-gift cards but I've never tried so I don't know for sure.

 

[starmaster1000]

Thanks!

So basically the gift card is never free. You're just getting it for paying full price.

 

[Ashfromoldsite]

Thanks!

So basically the gift card is never free. You're just getting it for paying full price.

They have to ring it up to activate it and put the balance on it.

 

[Amanda Cantwell]

Thanks!

So basically the gift card is never free. You're just getting it for paying full price.

well, it is technically free. They take, say $25 off the item, and put that $25 savings on a GC. so you pay the same price for the item, but get a $25 GC

 

[Dog]

Guests never understand this when they return things that they received a promotional gift card for... they always yell about “false advertisement” or “this is against the law!!” Like did you really think Target was going to let you keep a $25 gift card and return the items for full price as well? What would be the point? Target doesn’t give away free stuff. 🙄

 

[starmaster1000]

Thanks. No one explained this to me before so I adjusted the price down $25. Oops.

 

[starmaster1000]

Giving away money over here, y'all!!

 

[Amanda Cantwell]

Giving away money over here, y'all!!

Now we know you work at 1040!

 

[SoCalMama]

Guests never understand this when they return things that they received a promotional gift card for... they always yell about “false advertisement” or “this is against the law!!” Like did you really think Target was going to let you keep a $25 gift card and return the items for full price as well? What would be the point? Target doesn’t give away free stuff. 🙄

I swear this is not a lie. The GSA I used to work with insisted that the GC was a gift from Target, so you can't take back a gift. Full return - no discount due to the GC! We had a long argument about it.

 

[Llamanatee]

here’s what happened to me with a gift card promo. I ordered something online for pickup that got a $10 gift card. I put that I wanted the gift card texted to my number. I went and picked up said items. I got an email from target saying there was something wrong with my number and it could not send me the gift card and that I wouldn’t be charged for it. I verified my number was correct and I’m not sure why they couldn’t send it. But, they did not take away the $10 credit applied to my purchase. So instead of paying full price and getting a $10 gift card, they just took $10 off my purchase.

Unfortunately for them, I didn’t realize this at first and called customer service when I received the email. They sent me a $10 gift card to my email, and then another $5 for no reason. I wasn’t complaining or being rude when I called, I just wanted my $10 gift card.

So maybe taking the gift card amount away from the total and then adding it to a gift card might not be such a good idea.

 

[SallyHoover]

Another twist to the gift cart promo is it reduces the amount eligible for the red card discount (or team member discount). It is more noticeable for the larger gift cards- say the apple promotions. Someone buys a $399 Apple product and gets a $100 gift card. The $100 discount is taken from the $399 and the $100 gift card doesn't qualify for the discount so the redcard discount on the transaction is $14.95 (based on $299) vs the $19.95 (based on $399) if there had not been the promo. I had the worst time trying to explain this to someone last Thanksgiving/black Friday.

 

[band_rules16]

Yeah, these change the amount once you scan them...not sure how it's calculated. It's just annoying when I tell a guest one amount, give them the giftcard, and then it changes.

Another twist to the gift cart promo is it reduces the amount eligible for the red card discount (or team member discount). It is more noticeable for the larger gift cards- say the apple promotions. Someone buys a $399 Apple product and gets a $100 gift card. The $100 discount is taken from the $399 and the $100 gift card doesn't qualify for the discount so the redcard discount on the transaction is $14.95 (based on $299) vs the $19.95 (based on $399) if there had not been the promo. I had the worst time trying to explain this to someone last Thanksgiving/black Friday.

So I shouldn't feel bad that I bought a Switch last week and there's a giftcard promo this week? (Not sure it's worth the hassle to go in and get the promo...IF I can even do that.)

 

[Dog]

Yeah, these change the amount once you scan them...not sure how it's calculated. It's just annoying when I tell a guest one amount, give them the giftcard, and then it changes.



So I shouldn't feel bad that I bought a Switch last week and there's a giftcard promo this week? (Not sure it's worth the hassle to go in and get the promo...IF I can even do that.)

As someone who works at the service desk, I would let you return it and rebuy it in order to get the promo, honestly. It would probably be worth it if you don’t plan on returning the item

 

[band_rules16]

As someone who works at the service desk, I would let you return it and rebuy it in order to get the promo, honestly. It would probably be worth it if you don’t plan on returning the item

Yeah, I don't plan on returning it. I don't want to bog down my store though doing that at the service desk - they have enough going on.

 

[Dog]

Yeah, I don't plan on returning it. I don't want to bog down my store though doing that at the service desk - they have enough going on.

It would be easier than complicated Becky returners who want to return all the clothes they bought using a card lookup with no tags on them because her kids already wore them and then rebuy them since they’re now 10% off on cartwheel but she “doesn’t have her phone with her” because her little demons are watching jojo siwa videos in the car

 

[starmaster1000]

jojo siwa

Swear that little girl annoys me so much because I process too many returns of her crap.
Damn you, Jojo Siwa!

 

[Amanda Cantwell]

As someone who works at the service desk, I would let you return it and rebuy it in order to get the promo, honestly. It would probably be worth it if you don’t plan on returning the item

I would also let you return and rebuy especially if it was just the next week, as long as clearence isn’t involved.

 

[Bullseyerc]

It would be easier than complicated Becky returners who want to return all the clothes they bought using a card lookup with no tags on them because her kids already wore them and then rebuy them since they’re now 10% off on cartwheel but she “doesn’t have her phone with her” because her little demons are watching jojo siwa videos in the car

Damn you were high as fuck when you typed this 😂