Returning Holiday Gifts? Don't Make This Big Mistake
You may have a pile of gifts to take back to the store. Read on to make sure you don't end up making a huge blunder in the process.
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At this point, a lot of people have moved past the "cheer and joy" phase of the holiday season and are dealing with the aftermath. For many folks, that involves taking inventory at home and figuring out which gifts should stay versus go.
The National Retail Federation said last year that $173 billion worth of holiday gifts are expected to be returned for the 2023 holiday season. So if you're gearing up to lug a haul back to the store, you're not alone. But one thing you really don't want to do in the course of making holiday returns is settle for store credit. Going this route could end up hurting you financially.
The problem with store credit
What's wrong with store credit instead of cash or a refund on your credit card? Well, a few things. First, unless it's a store you shop at frequently, you run the risk of forgetting about your credit or not having an opportunity to use it.
Also, you never know when a given retailer might go under. Just look at big names that recently bit the dust, like Bed Bath & Beyond. And unfortunately, the risk of a retailer shuttering might be even greater when you're talking about a local or small business. A $20 credit to your local candle shop is going to be worth $0 if that store closes its doors.
Furthermore, let's say you run into a financial jam and need extra money. A cash refund is money you can use to pay an unexpected bill. And getting $30 or $40 back on your credit card gives you that much more leeway to charge expenses as needed. If your car ends up needing work that costs $200, you can't just offer up a $30 credit to Candles R Us as partial payment.
How to make sure you get your money back
If you're the recipient of an unwanted gift and you weren't given a gift receipt, then store credit may be your only option. But if you purchased a gift your spouse or child doesn't want, you have more options.
If you don't have your receipt but paid for your items with a credit card, a retailer may be able to look up your purchase that way and issue you a refund accordingly. And if you bought holiday gifts at Costco, you should know that each purchase you make is tied to your membership. So even if you tossed your receipts, a customer service representative should have no problem looking your purchases up and issuing a refund.
Finally, if you're eager to avoid a scenario where you're stuck with store credit, aim to return your unwanted holiday gifts as soon as possible. Different retailers have different policies when it comes to accepting returns. But the closer to the holidays you are, the more likely you are to fall within a retailer's window. Beyond that point, store credit may be your only option -- if it even is an option.
It's not uncommon to be in a position where you're returning gifts after the holidays. But do your best to avoid having to settle for store credit, because it may not end up doing you much good.
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We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Maurie Backman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale. The Motley Fool has a disclosure policy.
