Amazon‘s reward points program is extremely popular with online shoppers, allowing frequent customers to rack up points on purchases that translate into future savings. In fact, over 150 million people worldwide have an Amazon Rewards Visa card, accounting for roughly $16 billion in credit card spend per year according to J.D. Power.
But what happens to those hard-earned points if you need to make a return or cancel an Amazon order entirely? It‘s a common question, and one that doesn‘t always have a straightforward answer. As an experienced online shopper and consumer rewards expert, I‘m here to break down everything you need to know about Amazon‘s reward point refund process. We‘ll cover all the ins and outs of how points are earned and redeemed, when you can expect to get points back from a return, and how Amazon stacks up to other retailers. Plus, I‘ll share some pro tips for maximizing your points and avoiding common pitfalls.
Whether you‘re a rewards rookie or a seasoned points pro, this comprehensive guide will give you the full scoop. Let‘s get started!
Understanding the Basics of Amazon Rewards
To fully grasp Amazon‘s refund policy for reward points, it‘s important to understand how the program works to begin with. Amazon rewards come in the form of points that are earned on qualifying purchases and redeemed for savings on future Amazon transactions.
Earning Points
There are a few different ways to earn Amazon reward points, but the most common is through an Amazon Rewards Visa Signature credit card. These cards, issued through Chase bank, allow you to earn a percentage back on your purchases in the form of points. Here‘s a breakdown of the earning rates:
| Purchase Category | Earn Rate |
|---|---|
| Amazon.com and Whole Foods Market | 3% (5% for Prime members) |
| Restaurants, gas stations, drugstores | 2% |
| All other purchases | 1% |
So for example, if you spent $100 on Amazon purchases in a month as a Prime member with the card, you would earn 500 reward points, translating to $5 to redeem on a future purchase. Those points add up quickly, especially if you‘re a frequent Amazon shopper.
It‘s worth noting that there are some items that don‘t earn points, including:
- Tobacco and Kindle downloads
- Amazon Cash and Amazon Gift Cards
- Wireless and subscription services
- Any other non-physical purchases like warranties or Prime memberships
You can also occasionally earn bonus Amazon points through limited-time promotions offered periodically throughout the year, like earning 5% back on select categories or brands.
Redeeming Points
So how do you actually use Amazon points once you‘ve accumulated them? First, you need to build up a balance of at least 2,000 points before they can be redeemed. Every 100 points equals $1 to spend at Amazon checkout.
When you‘re ready to cash in, simply apply your available points balance at checkout to pay for part or all of your purchase. You can redeem in any whole dollar increment – for example, apply 1,000 points to take $10 off your total. It‘s super easy.
One important caveat – you can use points in combination with other payment methods on an order. So if your total was $50 and you only wanted to redeem 2,000 points ($20), you could apply the remaining $30 to a credit/debit card or gift card.
But here‘s where the refund question comes into play – what happens to redeemed reward points if you return the item they were used on? Let‘s dive into the refund policy details.
How Amazon‘s Reward Point Refund Policy Works
The good news is, YES, Amazon allows reward points that were redeemed for a purchase to be refunded if you end up returning the item. As they state in their Rewards Terms and Conditions, "If you return an item purchased with Points, we will credit your Amazon.com points balance within five (5) business days from the return processed date."
Sounds pretty straightforward, right? In most cases, it is, but there are a few important details to be aware of:
- Automatic Process – As long as your return is accepted and processed, the reward point refund should happen automatically without any extra steps on your part required. Just send the item back and watch your points balance.
- Refund Timing – Amazon states that it can take up to 5 business days from the date your return is processed to see the points credited back. In my experience, it‘s often even faster than that, but 5 days is the maximum time frame to keep in mind.
- Partial Refunds – If you‘re only returning part of your order, the point refund will be prorated accordingly. For example, say you bought 2 items for $50 total and redeemed 5,000 points to cover it. If you return just 1 item for a $25 refund, 2,500 points would be refunded, not the full 5,000.
- Ineligible Purchases – For any non-returnable items like digital downloads, opened giftcards, or custom/personalized goods, you would not receive a point refund since the original purchase isn‘t refundable period.
- Points Expiration – Refunded points generally assume the same expiration date of the original points redeemed, which is a minimum of 12 months out. The only exception would be if the points redeemed were already nearing expiration – then there‘s a chance they could expire before the refund is fully processed if you wait until the last minute.
So in the vast majority of cases, getting reward points refunded for an Amazon return is very simple and happens automatically as part of the regular refund process. However, there are a few rare scenarios where it gets more complicated.
Special Circumstances
While reward point refunds are pretty cut and dry, there are some unique situations where it may not be quite so simple:
- Refund Without Return – A few times, Amazon may agree to issue a refund without actually having you send back the item (like if it arrived damaged or is low cost). In this case, they likely won‘t refund your redeemed points since you still have the product in hand.
- Incorrect Refund Amount – It‘s possible that if you do a partial return, an Amazon mistake could result in the wrong number of points being refunded to you. Maybe they refund all points instead of the prorated amount you should get back. In this case, Amazon reserves the right to remove those extra points later on once the mistake is realized.
- Account Closures – If for any reason you decide to close your Amazon account while still holding a rewards points balance, those points are forfeited completely. There‘s no way to refund them at that point. However, if Amazon closes your account, they may refund your rewards balance first – but there‘s no guarantee.
- Expired Points – This is rare, but if you used points that were very close to expiring and your return isn‘t processed fast enough, there‘s a slim chance they could expire during the refund period. Then you likely wouldn‘t get them re-credited since they‘re already gone.
Again, these situations are outliers, but still worth being aware of. When in doubt, reach out to Amazon‘s customer service for clarification on your specific case.
Refund Process & Tracking
For regular returns, you‘ll usually follow the standard process through the Amazon Online Returns Center. If your reason for returning the item is honest and valid according to their policy, your reward points should be automatically refunded once the return is received and processed on their end.
To track your refund, go to the "Returns and Orders" page under your account. There you can find the status of any returns and see if they‘ve been completed yet. If it‘s been over 5 business days since a return was marked ‘processed‘ and you still haven‘t seen your points balance updated, I‘d recommend reaching out to Amazon customer service via phone, email, or chat to have them investigate.
In my experience, Amazon‘s service reps are super helpful in these cases and can usually resolve it swiftly by manually adjusting your rewards balance if needed. But you may need to provide documentation like your order number and return tracking info to assist them.
How Other Retailers Handle Reward Points Refunds
Amazon definitely isn‘t alone in the world of retail rewards programs. Most major stores and brands have some sort of loyalty setup these days. But how do they compare when it comes to refunding rewards on returned purchases? Here‘s a quick breakdown:
- Walmart – For Capital One Walmart Rewards cardholders, returned purchases result in any rewards earned on that transaction being deducted from your balance. For full refunds, the whole reward amount is removed. For partial refunds, it‘s prorated.
- Target – With the Target RedCard, you save an instant 5% on purchases rather than earning points. If you return an item, that 5% is deducted from your refund amount – so the rewards are forfeited.
- Best Buy – My Best Buy Credit Card holders earn 5% back in rewards on Best Buy purchases. But if you return an item, those earned rewards are deducted from the refund amount.
- Macy‘s – The Macy‘s Credit Card awards 2-5% back in rewards, depending on how much you spend annually. Any Star Money rewards earned from a purchase are deducted if you make a return.
- Kohl‘s – With Kohl‘s Cash, you earn a $10 reward for every $50 spent during promotional events. If you later return any Kohl‘s Cash eligible items, the value of the Kohl‘s Cash reward may also be deducted from your refund.
As you can see, many retailers take the approach of simply deducting any rewards earned on a returned item from your refund amount, rather than adding the rewards back to your account like Amazon does. So in that sense, Amazon‘s policy does seem a bit more generous.
However, the key difference is that those other programs award points on the back-end after purchases. Amazon lets you redeem existing reward points you‘ve already earned upfront. So it‘s not quite an apples-to-apples comparison.
Tips for Maximizing Your Amazon Rewards
Now that we‘ve covered the nitty gritty refund policy details, I want to share some of my top tips for getting the most out of your Amazon reward points:
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Never pay interest – If you‘re putting Amazon purchases on your Rewards Visa to earn points, great! Just be sure to pay off your balance in full each month to avoid interest charges. Letting rewards tempt you into debt is never worth it.
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Redeem regularly – Since Amazon reward points expire 12-24 months after they‘re earned, don‘t let them sit unused for too long. Make it a habit to check your balance and redeem points routinely so you don‘t lose them.
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Buy Amazon gift cards – Here‘s a pro tip: You can buy Amazon gift cards using your credit card and earn rewards points on the purchase. Then just load that gift card as payment on your account for future purchases. Boom, extra points!
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Watch for bonus offers – Sometimes Amazon will run special promotions offering extra rewards points for buying certain products or brands. Keep an eye out for these limited time deals to really accelerate your earning.
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Double up during sales – When there‘s a big Amazon sale event happening like Prime Day, those discounts combined with your reward points can equal serious savings. So save up points for times when you know prices will be extra low for a double whammy.
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Use Amazon Family – If you‘re a parent or caregiver, be sure to sign up for Amazon Family. It‘s a free program that offers 20% off diaper subscriptions, age-based recommendations, and bonus coupons. You can even earn points on select family essentials.
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Shop through the Amazon app – The Amazon mobile app has some extra reward point perks, like exclusive in-app bonus offers. Sometimes there are opportunities to boost your rewards rate to 5% or even higher for shopping in the app.
The key is to stay engaged with your rewards account and not let points go to waste. A little strategic effort can go a long way in maximizing your earnings over time.
Future of Retail Rewards: What to Expect
Rewards have become a crucial piece of the e-commerce puzzle for retailers, and that trend shows no signs of slowing down. In fact, experts predict loyalty programs will only get more competitive and personalized in the coming years.
"The future of loyalty is in establishing an emotional connection with consumers. Retailers will focus on building programs that recognize customers for every interaction they make with a brand, not just transactions. It‘s about making members feel valued."
- Darlene Miranda, Retail Loyalty Expert at Clarus Commerce
I think we can expect to see reward structures based more on engagement and experiences with retailers, rather than just monetary perks. For example, some brands are already testing out partnerships with popular services like Uber or Spotify to let shoppers earn credits for those apps as a loyalty bonus.
Rewards will also likely become more flexible and real-time. Rather than waiting weeks or months to accrue enough points for a discount, there may be more instant gratification rewards that let you save immediately for taking certain actions. And instead of being limited to one redemption method, points could be used in various ways like charitable donations, unique merchandise, or VIP event access.
Personalization and predictive analytics will also play a bigger role in loyalty, as retailers get savvier about mining shopper data for relevant offers. Real-time rewards triggered by behavior, location, or even weather could be served up to drive sales in the moment.
Of course, we can only speculate what the landscape will look like years down the road. But it‘s safe to say that rewards will remain an integral strategy for retailers, including giants like Amazon. The brands that find creative ways to recognize customer loyalty outside of just transactional perks will have a big advantage.
Key Takeaways
Let‘s recap the most important points about Amazon reward point refunds:
- Amazon DOES allow reward points to be refunded for returned or cancelled purchases, as long as the return is accepted under their standard policy.
- The refund process is usually automatic and should be credited back to your account within 5 business days of the return being processed.
- Some special situations like refunds without returns or account closures could affect your ability to reclaim redeemed points.
- Always check your points balance after a refund and contact customer service if you don‘t see it updated in a timely manner.
- Refunded points usually keep the same expiration date as the original ones redeemed, so be mindful of that window.
- Other retailers‘ policies mostly focus on deducting rewards earned on returned items. Amazon‘s points refund process is slightly different and more generous comparatively.
Overall, Amazon makes it pretty painless to get reward points back on eligible returns, which is just another reason shoppers love the program. But stay diligent about tracking your rewards activity to ensure nothing falls through the cracks.
With a refund policy this easy, there‘s really no reason not to maximize the heck out of your Amazon points! By following the tips we covered for racking up rewards strategically and putting them to use often, you‘ll be well on your way to e-commerce savings. Your wallet will thank you.
