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March 12, 2008

Apple Declares Customer to be Using Too Many Gift Cards to Purchase MacBook

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About a year ago, the Consumerist covered the story of a customer named Charlie whom Apple refused to sell a computer to because she had "too many gift cards". After a fair amount of publicity, Apple eventually allowed Charlie to purchase her computer.

The situation seems to have resurfaced and a recent story indicates that Apple has revised their policy of allowing customers to use an unlimited number of gift cards down to six gift cards:

The new gift card FAQ reads as follows:


Can I use multiple gift cards when making a purchase?
Yes. You can use up to six cards when making a purchase at a retail Apple Store and up to four cards at the online Apple Store.

In the case of the author, who has seven gift cards totaling US$1,250, Apple still refuses to sell him a computer despite having paid US$1,250 upfront.

Attempts to get in touch with Apple have yielded a series of negative replies from the company, which may wish to look into this policy or at least return the money that's been paid in advance.

If anyone's discovered or experienced a similar situation on their own end, please let us know in the comments or forums.

Posted by chrisbarylick at March 12, 2008 12:52 PM
Category: MacBook
Tags: Apple, cards, Charlie, computer, consumerist, gift, laptop, MacBook, many, money, reply, return, too, up front
Buy from: Apple, iTunes, Amazon.

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Comments

Wonder if you can use a couple of the gift cards to buy a gift card, thus consolidating the dollar value into fewer gift cards.

In California, gif cards and gift certificates that have been purchased (as opposed to awarded or donated by the store) can never expire and are treated as equivalent to cash.

Of course, if the company goes bankrupt, all bets are off.

Posted by: Malcolm at March 12, 2008 7:41 PM

Why would there be a limitation on how many you can use? Like if I bought 12 original iPhones, oh wait you can't do that! I would have had 12x $100 in credits, but I wouldn't be allowed to buy a computer? Wait till Steve Jobs runs for office, weeeeeeeee.

Posted by: Mr. Dilly Dally at March 12, 2008 10:42 PM

This limit is hard coded into their point of sale system as a security measure and is not something that can be changed at the store level. My niece was victimized by the TJX break and this is how the scam works. Credit card is stolen, used to buy gift cards (essentially laundered) and then the gift cards are resold at a discount. Gift cards are then used to make purchases. All of this occurs shortly after the card is stolen. By the time the victim receives their bill and everything is restored, the scammers are long gone. So what Apple and other stores are trying to do is minimize the loss potential. In my nieces' case, all the charges were eventually reversed (after 9-10 months) and at the very end all the stores were left with the loss as the banks simply reverse the charge. And I'm sure every thief will give out their real home address...

Posted by: Dave at March 13, 2008 9:14 AM

That's a good point Dave, and one that many readers aren't likely to jump to on their own. I know when I read the post I just thought, "what, why shouldn't I be able to use as many gift cards as I want?" But now knowing about such scams, it starts to make more sense, though it remains terribly inconvenient for the consumer.

Posted by: Xander at March 13, 2008 11:57 AM

I also know of a scam where stolen credit card are cloned into gift check cards, like the ones from Visa and Amex. Cashiers don't always pay attention and just go on their Happy Days...1 2 3 O'clock

Posted by: Mr. Dilly Dally at March 14, 2008 1:12 AM

I once worked for a major hotel brand. We had a very flagrant, crazy guest who paid for his room with many, many gift cards. My General Manager told me to process them, thinking nothing of it.

Sure enough, it was a scam. The hotel lost some big bucks and, the guest and his roommate were long gone before we could do anything about it. Not sure if these were purchased or stolen gift cards, but I'd bet they were purchased with a stolen card.

Apple is just trying to prevent fraud. Rather than being criticized, they should be commended.

This day and age, bank drafts can be faked as well as money orders. Until forms of payment are modernized, streamlined, and secured, you can expect companies that are trying harder than others to prevent fraud to enact similar measures.

Posted by: Brent at March 16, 2008 12:45 AM

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