Why does Home Depot refund Cash for Debit Card purchases?

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Just venting...
If you purchase something at home Depot on a debit card and then return it, they will only give you a cash refund.
Even when you don't have the receipt, their system is able to find your purchase if you give them the debit card, so they are obviously linked up in the bowels of their computers.
Every other store I know puts the refund back on the debit card, most times without even having to show them the card.
I'm now walking around with close to $200 in cash because of some returns I processed yesterday.
I wonder what their rules are if I buy $10K worth of lumber and then returned it. Would they give me $10K in cash which I would then have to report to the IRS?
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On Tue, 19 Jul 2011 09:23:04 -0700 (PDT), DerbyDad03

My guess is if they credited your debit account they would have to pay the interchange charge.
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It's not reportable to the IRS because it's not income.
Unless you stole the debit card and took the cash as profit, then technically it'd be reportable income.
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On Tue, 19 Jul 2011 10:34:06 -0700 (PDT), Shaun Eli

Not anything to do with taxes, rather the fees the bank (and network) charges to ding, or un-ding, a card. They paid once and they don't want to lose twice on the same transaction.
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ALSO, banks charge a fee to deposit cash, and the armored car charges to pick it up, so they want to get rid of the cash back to the customer. In this area Costco does the same thing.
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Yep! The same reason they allow you to get cash back from the transaction. Grocery stores used to allow one to write checks for an amount above the purchase, too. Some had quite a high limit ($50 or even $100). People bitch about credit card fees (or the lack of a discount for cash) but handling cash isn't free either.
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On 07/19/11 1:34 PM, Shaun Eli wrote:

The reporting of a $10K transaction has nothing to do with taxes or income.
Research IRS Form 8300
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On 7/19/2011 12:23 PM, DerbyDad03 wrote:

Likely because there are bank fees involved if they do a transaction back to the debit card. Since I didn't believe "too big to fail" and don't care much for banks I say good for them.

If you received over $10k and have a business you need to report it on form 8300:
http://www.irs.gov/businesses/small/article/0,,id 8821,00.html
Of course there would be no liability on your part since you would have the backup to show it was a refund.
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DerbyDad03 wrote the following:

on two separate retirement incomes), I visit my bank to grab $100 from the ATM machine. The $200 refund would save me two trips, or I can go to the bank and deposit the $200 back into the checking account.
--

Bill
In Hamptonburgh, NY
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I think he's mostly paranoid over the fact that he has a significant amount of cash in his pocket.
Of course the only way the bad guy would know you had that much cash on you is if you walked along fanning yourself with a stack of $20 bills... If you don't advertise it, nobody knows you have it, and the likelihood of getting held up is no more than any other person on any given day.
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On 07/19/11 3:45 PM, snipped-for-privacy@rochester.rr.com wrote:

What gave you the impression that I'm "paranoid" about carrying $200?
That has nothing to do with it.
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What else could it be? The principle of the thing???
Surely you take cash out of your bank account on a regular basis. Hell, I go through $100 in cash each week just for incidentals. What you perceive as a major inconvenience is at worst a minor inconvenience and at best a major time-saver because now you don't have to stop at the bank to take out cash for a couple of weeks.
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On Wed, 20 Jul 2011 07:52:24 -0700 (PDT), snipped-for-privacy@rochester.rr.com wrote:

I regularly have $500-$1000 in my wallet. I'm a bit low now ($300) because we went to the big city over the weekend. As noted here, as long as you don't flash it around, no one knows you have it so it's not a big deal.
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On 07/20/11 10:52 AM, snipped-for-privacy@rochester.rr.com wrote:

Well, it could be that I pay for just about everything with my debit card so I don't have to deal with getting change, waiting while they count it out, jingle the coins around in my pocket, etc.
I slide my debit card, push a few buttons and I'm done. It's quick and easy...I'm impatient.
I've got no problem carrying cash when there's a need for it and I usually have $40 - $50 in my pocket at any given time, but rarely do I need to have $200+.

Indirectly, yes. When I think I want a little cash, I use the cash back feature of my debit card and get $40 or $50 back from the cashier. Grabbing 2 twenties out of the register is pretty easy for most cashiers.
Even if they offered it, I'd never ask for $200.

Incidentals can be bought with a debit card, you know.

I don't have to stop at the bank *ever* to take out cash. I get my cash at the same place I pay for my purchases - the store's cashier or self check out registers. So having $200 in my pocket saves the minuscule amount of time required to have the cashier hand it to me. There's no "stop at the bank" saved.
Besides, it isn't about the current $200 anyway. If I buy something for $16.57 on my debit card and return it, that's coins in my pocket that I don't need. In fact, when I returned the $200+ items, it was on multiple receipts and the cashier processed each return as a separate transaction. I had well over a dollar's worth of coins in my pocket and a bunch of singles when I was done. Who needs that?
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perhaps HD doesn't want to pay a SECOND fee to credit your debit card? Use of the card incurs a user fee to HD,then when "refunding",it might incur a second fee to HD. Every electronic monetary transaction incurs a fee to someone.
--
Jim Yanik
jyanik
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Are you mentally deficient?
Why would you have to report YOUR OWN money, that you ALREADY PAID TAXES on, to the IRS?
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<< Are you mentally deficient?
Why would you have to report YOUR OWN money, that you ALREADY PAID TAXES on, to the IRS?>>
http://www.irs.gov/businesses/small/article/0,,id 8821,00.html
Filing Requirements: 1.. Who must file Form 8300? Any persons who receive more than $10,000 while conducting their trade or business must file a Form 8300. The $10,000 may occur in a single transaction, or a series of related transactions. 2.. What payments must be reported? A business must file Form 8300 to report cash paid to it if the cash payment is: a.. Over $10,000, b.. Received as: 1.. One lump sum of over $10,000, 2.. Two or more related payments that total in excess of $10,000, or 3.. Payments received as part of a single transaction (or two or more related transactions) that cause the total cash received within a 12-month period to total more than $10,000. c.. Received in the course of trade or business, d.. Received from the same buyer (or agent), and e.. Received in a single transaction or in two or more related transactions
-- Bobby G.
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Robert Green wrote the following:

He is not receiving $10,000 as payment in a business transaction, he is being given a refund of $10,000 in a business transaction.. Are you implying that he would have to pay taxes on the $10,000 twice?

--

Bill
In Hamptonburgh, NY
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On 7/19/2011 7:11 PM, willshak wrote:

Not Robert, The reporting requirement has nothing to do with his tax liability.

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wrote:

No, I am not. The IRS is looking for drug dealers, etc. and thus requires the *reporting* of any transactions that is over $10,000. Reporting is NOT the same as "being taxed." The IRS says:
a.. What is the definition of a transaction? A transaction is the underlying event resulting in the transfer of cash.
It sounds to me as if both the purchase and the refund needed to be recorded. I don't see Home Depot ever giving anyone a $10,000+ refund.
However, to answer your question, double taxation occurs all the time. The money that I paid taxes on is taxed again whenever I pay it to a doctor or groundskeeper and it becomes part of their income stream. I don't think that's fair, but I didn't write the tax code. If the groundskeeper pays his assistant, that money is taxed once again.
The Feds go so far as to demand a form be filled out even when cash is exchanged for other cash (in excess of $10,000).
-- Bobby G.
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