avios refund loophole?

dilby00

Hi - the other day I purchased a coffee maker on my amex card, but returned it for a refund in-store. I realised afterwards that they didn't ask for a particular card, and it was refunded to a different card. I am now wondering if that means I actually keep the Avios I earned? And if that's the case, what is stopping people who own businesses from just doing that all day for themselves and racking up big points? Surely I'm missing something?

Thanks!

vns

Most retailers ask for the original card that you bought the item with.

So that their fees are refunded too...Think you just got lucky (lazy staff or untrained usually)

VNS

dilby00

Right that makes sense.. so lets say they paid 2% transaction fee to amex for that, if they refund it to my master card then they don't get that 2% back, so that's their mistake.

Some companies (i know at least with commerce) have arrangements that don't have transaction fees, just a membership cost. Perhaps this is why some companies aren't so bothered?

formidible

Avios - the worst thing that ever happened to airmiles. The whole thing is now a complete rip-off so good luck to you if you can somehow rip them off. I for one have deleted my account.

InsideInsurance

dilby00 wrote: »

I am now wondering if that means I actually keep the Avios I earned? And if that's the case, what is stopping people who own businesses from just doing that all day for themselves and racking up big points? Surely I'm missing something?

Yes, if it isnt returned to source then you keep the Avios.

Why doesnt a business person do it? Because they arent refunding to source it doesnt count as a refund (which is why you keep the Avios) but it means that they will still have to pay the merchant fees for the transaction because it isnt a refund. Given an SME business is going to be paying 2%-3% on AmEx card transactions that will almost certainly wipe out the value of any Avios points earned.