Starbucks accused of manipulating app payments for $900 million profit
Starbucks is facing allegations from a consumer protection group that it unfairly made a profit of $900 million through app payments.
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This tracks. I get Starbucks giftcards (as gifts, not for myself) and typically load them into the app so I can order ahead and spend less time waiting at the store. It pisses me off to no end that when I get to the last dollar or two, I can't use it without reloading like $20 onto the app. I refuse to do that and lose the money.
I've never had a Starbucks gift card or used the app, but in the article they say that in store you can do a split payment using up either gift card or app balance, and pay the remainder cash. Is that something you've tried?
Starbucks disputed the allegations and told Fortune that customers can pay for their orders with whatever balance is left on their app or gift card and pay the remaining amount in cash at the store, thus reaching a zero balance.
So, this is not true? What's the actual truth to this functionality?
The truth is that a lot of loyal customers are boycotting Starbucks right now over unionization and their stance on Palestine. So Starbucks is trying to bring them back physically into the stores and are using the balance on their cards as leverage. Starbucks has already uncharacteristically been running several promotions to get people back to their stores, with the red cup and the Stanley thing.
If Starbucks has to return the customers' unused balance without bringing them into the stores, then they may have lost those customers for good.
I regularly get them from family, its annoying for this reason. But its better just use the remainders as a few bucks off a regular purchase (that id make anyway).