Target Red Card Rewards

Double Reduction - Consumer Rip Off?

I found an interesting paradox with the Target rewards program today and thought I would pass it on to my friends since I think it is a disservice to all Target Red Card Reward customers.

For this first example refer to the picture of the single receipt. I noticed I did not get a full 5% reward value of my purchase subtotal. I always thought the Red Card rewards program gave you 5% of what you paid? This led me to dig into what was going on with the program as seen below.

Purchase #1

I made a purchase at Target of multiple items where the subtotal (pre-tax) was $193.84. In purchasing those items I was given two promotional $5 gift cards. Note, I did not purchase the gift cards, they were given to me because of a promotion for buying an item. After reviewing the receipt I noticed that I did not get a full 5% rewards of the subtotal. I was expecting to get 5% of $193.84 = $9.69, but was given $9.19. The difference of 50 cents (not the rapper lol) was due to the $10 worth of gift cards given to me. 5% of $10 is 50 cents. So it appeared Target is reducing your rewards amount by 5% of the promotional gift card(s) value whether you purchase them, use them, or are given them.

So I decided to test my theory again and see if your Red Card rewards would be reduced by 5% of the promotional gift cards value when the cards are given to you (like purchase #1 above). But I wanted to take it a step further and see if I then use that promotional gift card on another purchase if my rewards would again be reduced by the 5% of the promotional gift card. So in essence, would I be penalized twice for the same gift card, once when given to me and once again when I used it to pay for another purchase?

Refer to Picture #2 with two receipts: One receipt shows that I was given a promotional gift card of $5 and the 2nd receipt shows I used that same $5 promotional gift card to pay for another purchase.

So to my surprise the customer's Red Card Rewards are being reduced both when you receive the promotional gift card and when you use it. This is clearly double dipping or reducing your rewards twice for the same gift card.

Here is the math:

Purchase #2: where I am given the $5 promotional gift card

Order Subtotal = $18.78

5% of $18.78 = $0.94

I received $0.69

Difference is $0.25 which is 5% of the $5 gift card I was given

Purchase #3: where I use that $5 gift card I was given in purchase #2 to pay for this purchase

Subtotal = $7.28

5% of $7.28 = $0.36 - I would expect that since I am using the $5 gift card they would reduce the subtotal by the $5 gift card first then calculate my 5% rewards on the remaining balance. That is what they did which again reduces my rewards by $0.25

$7.28 - $5 gift card = $2.28 x 5% rewards = $0.11

So you can see I lost 25 cents when the promotional card was given to me and 25 cents when the promotional card was used to pay for a purchase. To me this is unfair. ‪#‎TargetStores‬ should not be double reducing rewards on the same gift card.

In my mind, what their system should do is ignore the gift card when it is given to you but reduce your rewards only when you use the gift card to pay for a purchase.

I know companies can design their reward programs anyway they want, but if you consider how many Red Card Reward customers are being shorted like this it probably adds up to a lot of money the company is saving.

So I either have way too much time on my hand, or I believe honest treatment of your customers is the best business practice.

So until next time, make each day count!!

Beach Bum Philosopher