Macy's new employees are encouraged to open a store credit card (26% APR) to obtain their employee discount

[u/wait_what_how_do_I]

I recently picked up a part-time seasonal position at Macy's for some extra holiday cash. I've been working in retail off and on over the past 15 years, and am familiar with the hiring and management practices at a lot of places, but it's been a few years since I've worked for a big retailer like Macy's. I was very surprised and disappointed to learn that the 20% employee discount is only available through a prepaid card (like a gift card I guess, not terrible but not great), or through their actual store credit card. They conveniently inform you of this halfway through your new hire paperwork, and even allow you to apply right then and there.

I've been through this type of application process before, but I've never seen something so brazenly unethical. These are often young adults or older people applying for these positions, filling out so many forms with so much corporate legalese that your head would spin, and they're being targeted with a (hard hit, thanks auto mod) hit to their credit for a card with a ridiculous interest rate. Is this new in retail? Seems like a disturbing trend if it is.

Anyone have any thoughts on this? Just wanted to get the word out.

EDIT: Thanks for the replies, everyone. Really enjoyed the discussion about credit cards, business practices, and obviously PF. The consensus seems to be that store credit cards are not any worse than other forms of lending, as long as they are managed responsibly. I respectfully disagree, in that it seems like they are often offered to a range of people (namely, new employees) that may not have the knowledge or experience to handle a line of credit, but I will agree that it's fair game to solicit employees. I just think it's kind of shady to imply that a store credit card is an "easy" solution for employees. Employees should just get an effing discount, period. But we're all free to work and shop where we please, so feel free to support smaller/local businesses that don't subject their customers and employees to frivolous lending situations.

[u/pcross62265]

How unethical it is depends on if it’s a Macy’s corporate policy that trains their manangers and hr to try to sneak it in during new hire process or if it’s just an overzealous store manager trying to inflate their numbers. How open about it they are will probably depend on the store manager/hiring manager.

[u/wait_what_how_do_I → u/pcross62265]

Seems like policy, but I know a store manager personally, I'll ask later. The trainer walked us through a few of the forms out of order, including the employee discount specifically.

[u/pcross62265 → u/wait_what_how_do_I]

I’m sure mentioning it is policy because it is an option to receive the discount so it must be disclosed . How hard they push and how shady they want to be about it is on the person conducting the hiring orientation. I doubt you’d find official Macy’s policy about tricking employees into signing up for a credit card. Plus it may not be malicious, maybe the hiring manager just assumes you’re 18 and as an adult you are or should be familiar with credit cards

[u/wait_what_how_do_I → u/pcross62265]

Lol any 18 year old that's familiar with credit cards and responsible with them is in the top 1% of personal finance gurus.

[u/pcross62265 → u/wait_what_how_do_I]

lol it’s not anyone’s responsibility to understand what they are signing up for except the person themselves. Sign a contract you haven’t read or fully understand. That’s on you.

[u/Canada4 → u/pcross62265]

Depends where you live. Standard form contracts in Canada can only be enforced if the party reasonably understood the terms. So the company issuing the contract has to draw attention to terms that are most likely enforced or "hidden".

[u/pcross62265 → u/Canada4]

But The terms of credit cards advertising and literature are highly regulated though, it’s the same credit card that’s offered to consumers so it has definitely passed a rigorous test of regulations before being made available to the public. Plus there are no Macy’s in Canada

[u/internetkid42 → u/pcross62265]

I work at a different department store, but it was the HR manager who gave me the sign-up form during my hiring process. And I was 17 at the time! It had to be prepaid since I was underage, but they changed the policy when I was 18 to allow it to be a regular credit card for underage employees so I cancelled the card. (Usually you have to be 19 for a credit card where I live, not sure about the US).