Isn’t this like the whole point of gift cards etc.
They already have your money and they hope you don’t spend it.
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!
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.
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.
Does this include people that just use their Starbucks cards for frequent purchases? I always have up to $25 on my card for the one or two times a week I get something. That is just money I haven’t spent yet, and I’m fully aware that I could just use it up if I stopped going to Starbucks.
Well… as someone who thinks he spends more money at Starbucks than is smart I’d go as far to say anyone going there is a little dumb lol
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?
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
