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Kohls Discounts, Deals and Coupon Codes

Beware The Kohl's Cash Scam - Thumbs Down Against Kohls Cash!

funkmasterta 638 January 3, 2013 at 12:22 PM in Education More Kohls Deals
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Kohl's Cash seems like a nice way to get some return on your shopping but beware of its pitfalls.

For example (I'm excluding taxes to keep this simple):
  • Say you buy Product A for $50 and earn $10 in Kohl's Cash.
  • Then, you buy Product B for $50 and use the $10 Kohl's cash to help pay for it, so you end up paying $40.
  • Now, if you return Product A, Kohls will only refund you $40, since you spent the $10 Kohl's Cash.
  • Then, if you decide to return Product B, Kohls will only refund $40 since that is the amount that you paid out of pocket and give you $10 in Kohl's credit.

In the end, you paid:
  • $50 cash for Product A but upon returning the item, only received $40 back.
  • $40 cash for Product B but upon returning the item, only received $40 back + $10 store credit.
  • Kohls cash permanently converts your money into their store credit at a rate of 20 cents on the dollar or 20%!!

Quote :
For the mathematically challenged:

Money out of pocket spent...........$50 + $40 = $90
Money received after returns.. - ($40 + $40) = - ($80)
=====================================
Difference: $10 of your cash which is permanently converted into Kohl's Cash!

If you returned everything you bought from Kohl's BACK TO Kohl's, then likewise, you should have the right to get ALL of YOUR money back, BUT Kohl's only returns $80 back to you! (in our example)


This is a VERY SNEAKY way of locking in your money into their store. I'm surprised that this is even legal.

Kohls cash certainly helps sometimes, but beware when returning items. It's not the huge cash back savings that it appears to be. Kudos to the Kohls marketing people who made this up, very sneaky!!!

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#46
Quote from MoveOutdaWay View Post :
I see you're not getting it.

Let's try this over again.

Did order A which came out to $200 and then received $30 KC total. I paid with my Kohl's charge on order A, did not use any KC on this order.

Then, go see my previous post on the math.

Ideally, they should refund me $75 + tax and then deduct the $20 KC (used on order B) from my return. They should not refund ONLY $55 worth of merchandise because I clearly paid taxes on $75 on jeans.

Let me know if you are still confused.
This is incorrect. You 'pay taxes' on the Kohl's Cash when you return an item because you avoid paying tax when using the Kohl's Cash. Consider this example where the tax rate is 10%:

A $30 item will cost $33 after taxes. Using $20 Kohl's Cash doesn't make the total $13, it makes the total $11; $30 item cost - $20 Kohl's Cash + $1 tax = $11. So the Kohl's Cash actually saved you $22, not $20. This is why you are receiving less taxes back when returning an item that involves Kohl's Cash, even if you didn't use Kohl's Cash to buy the item. You didn't receive the $20 worth of taxes in this return because you saved that tax when you used the Kohl's Cash.
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#47
Quote from MoveOutdaWay View Post :
I bought $160 (order A) and returned $75 worth of jeans (I paid $75 in taxes for those jeans).

I go to the register to make my return $75 worth of jeans. They said they have to deduct $20 from the return because I used my KC on order B. Okay, that's fine. No problem.

Here's what they did:

$75 - $20 KC = $55 + 8.75% tax (that would come out to $4.81) = $59.81

The above is incorrect because I paid taxes on $75 worth of merchandise. Follow?

Ideally, I'm suppose to get $61.56 instead. Here's the math $75 + 8.75% tax (that would come out to $6.56) = $81.56 AND THEN - $20 KC = $61.56

I lost out and paid an extra $1.75. Some of you might say it's not a big deal but this is the same as paying tax for buying a GC.
I agree with the way Kohl's handled the transaction. The idea is to put the customer in the position he/she would have been in had the Kohl's cash not been issued/used. You were able to avoid paying taxes on $20 worth of merchandise in transaction 2 because of the Kohl's cash. The transaction 2 benefit was nullified as a result of your return.
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#48
Quote from mdm4sfest View Post :
How many items should one human physically return in a single year that they bought in person, one maybe two? Cmon folks.... youre wasting more time and gas money driving back in forth to kohls to try to scam them....
I don't read that anyone is scamming Kohls in this thread. Don't make honest people out to be crooks because they have to return items.
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#49
Quote from NeverCall View Post :
This is incorrect. You 'pay taxes' on the Kohl's Cash when you return an item because you avoid paying tax when using the Kohl's Cash. Consider this example where the tax rate is 10%:

A $30 item will cost $33 after taxes. Using $20 Kohl's Cash doesn't make the total $13, it makes the total $11; $30 item cost - $20 Kohl's Cash + $1 tax = $11. So the Kohl's Cash actually saved you $22, not $20. This is why you are receiving less taxes back when returning an item that involves Kohl's Cash, even if you didn't use Kohl's Cash to buy the item. You didn't receive the $20 worth of taxes in this return because you saved that tax when you used the Kohl's Cash.
Ok what if you return the item you spent Kohls cash on do they refund the tax then? No they would not refund the tax then, because you avoided paying it like you said, because you used Kohls cash. If only one of the items is returned the one that gives cash, or the one that the cash is spent on, then the way that Kohls is doing it will work out fine. However, if both items are returned the one that produced the Kohls cash, and the one that the Kohls cash was spent on then there will be sales tax being collected that is not due.

If the extra sales tax is being sent to the state it is in error obviously, but if Kohls is keeping it that is even worse. They may not even intentially be keeping it if it isn't sent to the state, but when the accountants go to figure out the sales tax owed for the period they should be going with actual sales less any store coupons and then times the tax rate as the payment that will be due, which would not include the discrepencies (or it shouldn't anyway). Then they will pay what is due, without knowing why there is discrepenices, or not caring so much if it is less than a certains % which is not material to look into. The discrepencies might very well be to much sales tax collected in certain cases like this when both items are returned. Yes I agree it needs to be fixed, so that the first return ties with any second return involving the same Kohls cash, so customers are not over charged, the state doesn't get to much money, and/or Kohls doesn't keep monies they aren't entitlted to.
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#50
Quote from NeverCall View Post :
This is incorrect. You 'pay taxes' on the Kohl's Cash when you return an item because you avoid paying tax when using the Kohl's Cash. Consider this example where the tax rate is 10%:

A $30 item will cost $33 after taxes. Using $20 Kohl's Cash doesn't make the total $13, it makes the total $11; $30 item cost - $20 Kohl's Cash + $1 tax = $11. So the Kohl's Cash actually saved you $22, not $20. This is why you are receiving less taxes back when returning an item that involves Kohl's Cash, even if you didn't use Kohl's Cash to buy the item. You didn't receive the $20 worth of taxes in this return because you saved that tax when you used the Kohl's Cash.
This should not have applied to order A because I paid full taxes on that order. However, they should have re-adjusted order B and collected taxes on that order since I did use KC. And, since the $20 KC was voided, they need to revise order B and SHOW that I used only $10 KC because $20 was voided.

So, instead of taking 20% off of... let's say I bought $100 worth of merchandise... $100 - $30 KC = $70 x 20% = $56 = 8.75% tax ($4.9) = $60.90 grand total.

The new math should as follow because they voided my $20 KC (it's already in my statement that I need to pay):

$100 - $10KC = $90 x 20% = $72 x 8.75% tax (6.3) = $78.30 grand total.

The difference in tax is $6.3 - $4.9 = $1.4 <~~ that I need to pay for order B

But, the 20% discount difference is $72 - $56 = $16 < ~~ HUGE difference. And Kohls is refusing to fix this error.

And, let's say I need to return some items on order B because of fitting issues. Most likely, Kohls will issue me $30 in store credit because on my receipt, it says $30 KC used but in reality, I only used $10 because it was voided on order A. And they might make me pay for that $10 KC I used on order B and issue me a $20 store credit Dontknow

One last point, on order A, I lost out $1.75 on taxes but the difference in tax I'm suppose to pay on order B is only $1.40 (see above math).

I really hope people can refrain from trying to protect Kohl's and make it seem like it is the consumers fault because some people have (in the past) scam Kohl's. However, not everyone did.

I hope my math is clear enough for you to understand that Kohl's is indeed scamming because there is no way they cannot fix this (as per the CS rep).
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#51
I really don't care enough to have to keep explaining this so let's try a different way: some of you are suggesting kohls is committing tax fraud on a huge scale. So, maybe complain to the appropriate authority if you think this is true instead of an Internet message board. Do you actually want something to get done or do you just want to whine about it ?

In reality the math is weird to wrap your head around but you're incorrect.
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#52
Quote from kerplunk View Post :
I don't read that anyone is scamming Kohls in this thread. Don't make honest people out to be crooks because they have to return items.
Its not that they are returning items, its that "some"(maybe no one on here) take back numerous amounts of items in a single year. If you are buying something in person, there is no reason you should continue to return item after item just to try to hassle Kohls. Im just saying there are some scumbags out there.
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#53
Quote from NeverCall View Post :
I really don't care enough to have to keep explaining this so let's try a different way: some of you are suggesting kohls is committing tax fraud on a huge scale. So, maybe complain to the appropriate authority if you think this is true instead of an Internet message board. Do you actually want something to get done or do you just want to whine about it ?

In reality the math is weird to wrap your head around but you're incorrect.
sorry you're having difficulty understand basic math. How am I whining about it when I'm giving everyone a HU so they can watch out for this unethical behavior Dontknow I've chatted once online with a CS rep and called twice.
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#54
Quote from MoveOutdaWay View Post :
sorry you're having difficulty understand basic math. How am I whining about it when I'm giving everyone a HU so they can watch out for this unethical behavior Dontknow I've chatted once online with a CS rep and called twice.
That is YOUR experience, on my receipt everything is 100% correct. It could be a computer glitch.
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#55
Quote from Buckyball60 View Post :
That is YOUR experience, on my receipt everything is 100% correct. It could be a computer glitch.
It could happen to anyone in my scenario placing orders 2 orders online (even in store). According to my memory, you were one of the people who didn't get my math. Plus, did you make a return on your first order that generated the KC to use on your 2nd order?

You should learn how not to use bold letters when having a peaceful conversation.
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#56
Quote from MoveOutdaWay View Post :
sorry you're having difficulty understand basic math. How am I whining about it when I'm giving everyone a HU so they can watch out for this unethical behavior Dontknow I've chatted once online with a CS rep and called twice.
You're spreading false information. Once again, you are suggesting kohls is committing tax fraud. I'm sure the government would be more than happy to hear about this; why not inform the proper authorities?

Occam's Razor for me here: kohls committing tax fraud or customer confused by receipts?
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#57
Quote from MoveOutdaWay View Post :
sorry you're having difficulty understand basic math. How am I whining about it when I'm giving everyone a HU so they can watch out for this unethical behavior Dontknow I've chatted once online with a CS rep and called twice.

If you really want action you could call the appropriate sales tax division in your state and file a complaint. If you save your receipts you could get your tax back. If enough people in the state complain then Kohls would take action. The problem is like you said enough people just let things like this go.

When Walgreen's was charging tax wrong on coupons at some of my stores this could be fixed on a store by store basis, and I just ate the extra tax, because the stores did fix it. However, I'm sure Kohls would have to be fixed at the Corporate programing level. If you do decide to file a complaint, the way to prove your point would be to return your item from order B and see how much tax you are really refunded. I suspect you are right and you will end up losing tax money twice when it should be once. However I see no other way to prove your point unless you do both returns. Then photo copy both receipts along with a letter explaining how you were shorted $1.75 with tax that should not have been collected, and where is it going anyway? Kohls has had these changes in place for several months now. I think that this issue doesn't come up so often as most people probably won't need to return items from both orders A and B, but when it happens it needs to be right tax wise for the refund.
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#58
Quote from MoveOutdaWay View Post :
It could happen to anyone in my scenario placing orders 2 orders online (even in store). According to my memory, you were one of the people who didn't get my math. Plus, did you make a return on your first order that generated the KC to use on your 2nd order?

You should learn how not to use bold letters when having a peaceful conversation.
You are talking all the time about different things. Post your receipts or shut up. Mad
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#59
Quote from NeverCall View Post :
You're spreading false information. Once again, you are suggesting kohls is committing tax fraud. I'm sure the government would be more than happy to hear about this; why not inform the proper authorities?

Occam's Razor for me here: kohls committing tax fraud or customer confused by receipts?
Do you think that informing the authorities will help the people who shop at Kohl's? No, the authorities will not do squat. I've chatted with 3 CS rep to inform them of this error and guess what they told me? "There's nothing they can do. Go talk to the store manager."

Really? Someone at Kohl's made their computer system to process a return this way.

Btw, I am not spreading false information. I have receipts and it's on my online Kohl's account.

Quote from gypsylady View Post :
If you really want action you could call the appropriate sales tax division in your state and file a complaint. If you save your receipts you could get your tax back. If enough people in the state complain then Kohls would take action. The problem is like you said enough people just let things like this go.

When Walgreen's was charging tax wrong on coupons at some of my stores this could be fixed on a store by store basis, and I just ate the extra tax, because the stores did fix it. However, I'm sure Kohls would have to be fixed at the Corporate programing level. If you do decide to file a complaint, the way to prove your point would be to return your item from order B and see how much tax you are really refunded. I suspect you are right and you will end up losing tax money twice when it should be once. However I see no other way to prove your point unless you do both returns. Then photo copy both receipts along with a letter explaining how you were shorted $1.75 with tax that should not have been collected, and where is it going anyway? Kohls has had these changes in place for several months now. I think that this issue doesn't come up so often as most people probably won't need to return items from both orders A and B, but when it happens it needs to be right tax wise for the refund.
Yes, have my receipts. Should take the advice and report them to state AG or BBB. Thanks

Quote from gypsylady View Post :
Don't bother calling CS reps, call your state sales tax authorities. I don't want to get in the middle of anyone's dispute, but I understand what you are saying (by the way I am an Accountant by degree), and I would just stop trying to explain to others that would argue about it, as is an unproductive waste of time.
I'm not going to bother with CS reps. Their computer programmer should be written up for this. Yes indeed, an unproductive waste of time. Reps!
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#60
Quote from MoveOutdaWay View Post :
Do you think that informing the authorities will help the people who shop at Kohl's? No, the authorities will not do squat. I've chatted with 3 CS rep to inform them of this error and guess what they told me? "There's nothing they can do. Go talk to the store manager."

Really? Someone at Kohl's made their computer system to process a return this way.

Btw, I am not spreading false information. I have receipts and it's on my online Kohl's account.

Don't bother calling CS reps, call your state sales tax authorities. I don't want to get in the middle of anyone's dispute, but I understand what you are saying (by the way I am an Accountant by degree), and I would just stop trying to explain to others that would argue about it, as is an unproductive waste of time.
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