Starbucks Korea said on the 26th it will temporarily ease the refund standard for Starbucks Card balances. After going through related system development procedures, from July 1 to 14 for two weeks, the company plans to support exception refunds upon customer request regardless of the ratio of the charged amount used.
Previously, under the Starbucks Card terms and conditions, customers could receive a refund of the remaining balance only if they had used at least 60% of the final charged balance, and only up to the remaining 40%. When this temporary measure takes effect, during that period customers can apply for a balance refund even if they do not meet the condition of using 60% or more.
The measure follows continued withdrawals from the rewards membership and demands for Starbucks Card balance refunds among some customers after recent controversy over inappropriate marketing by Starbucks Korea.
Because the Starbucks Card is a prepaid, reloadable payment method, refunds of remaining balances were previously allowed only after using a certain amount under the existing terms, but after the controversy, a boycott movement grew along with calls to "let us get back the remaining amount without usage conditions." In response, Starbucks decided to temporarily ease the refund standard to reduce customer inconvenience and work to resolve the situation.
A Starbucks representative said, "With a heavy sense of responsibility and reflection, we decided to ease and operate the standard to minimize inconvenience, even a little, for customers who have recently requested refunds."
Any customer holding a Starbucks Card can apply for a refund through the Starbucks mobile app from June 1 to 14. The refund will be paid within seven business days after application. The refundable amount per account is up to 2 million won, the current maximum Starbucks Card balance limit.
However, refunds through stores will be operated on a limited basis. Store refunds are available only for anonymous physical cards that are not registered in the Starbucks app.
A procedure has also been prepared for customers who want to withdraw from the Starbucks Rewards membership immediately. These customers can visit a store and transfer their entire remaining balance to an anonymous physical card to withdraw from the membership even before the exception refund period. After that, if they visit a store from June 1 to 14, they can receive a cash refund without usage conditions.
During the exception refund period, Starbucks plans to operate some Starbucks Card-related convenience functions and balance reload limits on a limited basis, taking into account store-by-store response burdens and the potential for abuse in cashing out.
Specific refund procedures and precautions will be announced later through the Starbucks website and mobile app. A Starbucks representative said, "We will continue efforts to listen to consumer opinions and improve inconveniences related to Starbucks Card refund rules going forward."