THE NEW YORK TIMES

Published: 10:38 p.m. Friday, Dec. 18, 2009

So you think you’ve picked out the perfect gift for your loved one. But there’s one more thing you should consider: How hard will it be to return it? Before you take out your credit card, take the time to closely read the fine print of the store’s return policy, or ask about it, because there is a huge gulf between the most generous and the most restrictive. And do not assume that the stores you shopped in last year have the same return policies this season. About 17 percent of retailers have tightened their holiday policies this year, according to the National Retail Federation. Many of the retailers that have changed their rules have good reason: The industry will lose an estimated $2.7 billion during the holidays because of return fraud and about $9.6 billion for the year, according to the federation, a retail trade group. Scam artists produce fake receipts, or they take advantage of stores with lenient policies, steal large quantities of merchandise and then return them without a receipt. “Generally speaking, a store can set up any return policy it wants,” said Edgar Dworsky, a consumer lawyer and founder of ConsumerWorld.org, a consumer resource guide. But the policy does have to be clearly disclosed. There are a handful of stores whose liberal return policies are renowned, Nordstrom and Land’s End among them. Land’s End likes to point to the old-fashioned London taxi featured on its 1984 catalog cover, which it sold for $19,000 that year. More than two decades later, the customer asked for a refund, and Land’s End returned the entire $19,000. The black cab lives in Land’s End’s warehouse today, as a testament to its lenient policy. At the opposite end of the spectrum are electronics retailers that only allow a couple of weeks to return items like computers and may charge a 15 percent restocking fee. Equally frustrating are companies whose brick-and-mortar stores refuse to make exchanges for merchandise bought online. Plenty of retailers, however, try to make life easier during the holidays and loosen their rules. Many stores, for instance, will allow items purchased in November and December to be returned through January. But policies can vary widely, even among retailers within the same retailing empire, like Gap. The following tips will help you navigate the various rules of return, both online and off. Don’t assume: If you purchased something online, it does not necessarily mean you can return it to the retailer’s physical location. Many big stores, like J. Crew, will take back anything purchased online, but others, including Sports Authority, American Apparel and Home Depot, will not . Do your homework: Whether you’re shopping online or in a store, be sure to check the various return policies on the retailer’s Web site or at the cash register. Online store policies may differ, though some retailers provide a little more wiggle room for online purchases — 45 days for online returns versus 30 days for store-bought merchandise. Retailers may also have different return policies for different types of merchandise. Most stores continue to “slice and dice their return policies, creating complicated rules for different categories of items,” Dworsky said.

Know the restrictions: It’s often impossible to get cash back, especially if you’re returning a gift. Many retailers will provide refunds only to the person who originally made the purchase, while gift recipients — even if you have a gift receipt — can only make exchanges for merchandise or get a store credit or gift card. If you’re the original purchaser, you’re typically entitled to the tender you originally paid with. But you will need the original receipt, and the credit or debit card used to make the purchase. If you paid cash, you may also need a driver’s license to get your money back at some retailers. Check your card’s policy: Several credit cards offer little-known but highly useful benefits that allow you to secure a refund when a retailer will not grant one, as long as you made the purchase with that card. Some MasterCard and Visa cardholders can receive refunds for up to $250 per item — there is a $1,000 annual limit — within 60 or 90 days of purchase. American Express, meanwhile, will cover up to $300 per item, excluding shipping and handling, for 90 days, up to $1,000 per account each year. And the Chase Sapphire cards cover up to $500 per item, for a maximum of $1,000 annually. Keep receipts: This is obvious. Get a folder, toss all your receipts inside and keep them, even long after you’ve handed out your holiday gifts. If you or the gift recipient end up dissatisfied with an item and the retailer refuses to take it back, you may need the receipt to apply for a refund from your credit card company. Before you go that route, always ask to speak with a store manager, whether you’re at the store or on the retailer’s customer service phone line. “If a satisfactory resolution is not obtained, then a complaint can be filed with the state attorney general’s office or local consumer agency,” Dworsky said.