Isn’t this like the whole point of gift cards etc.
They already have your money and they hope you don’t spend it.
In a former life, I sold point of sale (POS) machines. We got bonuses for selling stuff like gift card add ons and the number one selling point to retailers was that some significant percentage of cards are never redeemed at all.
A decade ago, I worked on POS systems as a software engineer.
The selling point was absolutely hawking gift cards. Since we saw the data from companies, and we had a clause that gift cards expired (before the government stepped in) I remember being blown away by how many millions it was in pure profit.
Gift cards. Bleh
This sounds like bullshit. When your card empties you can pay the rest with a credit card or cash. Starbucks doesn’t force you to reload a card, or use the card for the entire transaction price. You can even move your gift card balance to the app to consolidate multiple gift cards if you have trouble keeping up with multiple cards.
When I use the app it forces me to reload my balance, I can’t just pay what is owed. I support this investigation. Starbucks is basically forcing you to always leave a portion of unspent money on in your “Starbucks” account.
And yet they still claimed an average of $180,000,000 a year the past 5 years that people didn’t spend.
I’m with you this is something Starbucks probably doesn’t engineer, it’s just people being dumb.
It’s definitely a dark pattern built into the app / gift card experience.
Kind of. The app doesn’t in any way tell you that you can use the card balance to pay part of your bill and then use a credit card for the rest; I only found out when a barista told me
You say it sounds like bullshit, but are you disputing the article?
Over the last five years Starbucks has claimed nearly $900 million in unspent gift card and app money as corporate revenue, boosting corporate profits and inflating executive bonuses.”
Are you saying this never happened? If not, where is the bullshit?
They didn’t provide proof of that allegation. At least, not in this article. The consumer group alleges that Starbucks claims unused gift card balances as revenue. Are we sure they aren’t showing a liability for the respective amount? I didn’t look through their corporate filings, and the article doesn’t provide citations from public filings. Just accusations.
Wait, is that illegal? Basically every app with in-app currency does that. My laundromat does that.
This is the best summary I could come up with:
A consumer action group is accusing Starbucks of exploiting customers via its gift card and app payments, forcing them to enter a spending cycle where they will never be able to fully spend the remaining balance of prepaid amounts.
“Starbucks rigs its payment platform so consumers are encouraged to leave unspent money on their cards and apps,” said Chris Carter, campaign manager for the group, in a statement.
“A few dollars here and there left on a payment platform may not sound like a lot but it adds up.
Starbucks spokesperson Sam Jefferies told Fortune the company “is committed to working with the State of Washington to ensure it remains in compliance with all state laws and regulations.”
The group, in a 15-page complaint, alleges the platforms for Starbucks’ mobile app and digital payment cards are akin to an “involuntary subscription.” Customers can only reload money in $5 increments, with a $10 minimum purchase.
Today, drive-through and app orders make up the majority of the company’s purchases.
The original article contains 316 words, the summary contains 167 words. Saved 47%. I’m a bot and I’m open source!
Starbucks disputes this, noting that customers can pay for their purchase with whatever money remains on the app or gift card, then pay the balance in cash at the store.
Seems pretty clear cut
Nice people
What a bizarre story.
What a stupid, utter fucking waste of everyone’s time. Absolute worthless suit with no merit.
