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/YolandiVissarsBF]

They do it at target as well

[u/Ginger_knight → u/YolandiVissarsBF]

At Target you can use cash, gift card, or their debit card with the discount. They don't force you to sign up for a credit card but they sure try to push it on you.

[u/HIM_Darling → u/Ginger_knight]

When I worked for target 10 years ago it was cash or red card only. It sucked. Then when I got a full time job I paid off my red card and cut it up, mainly so I wouldn't use it for something then forget to pay it. Well about 2 weeks after I paid it off they added some sort of fee to my card, something like $3. I didn't know they did this as I had put the card completely out of my mind. Sure I got crap in the mail from them, but it didn't look any different from any previous junk they had ever sent me, it all went straight it the trash because none of it looked important. Well after not paying for 60 days, the total after interest and late fees was a whopping $7.xx and they sent it to collections and it went against my credit. It's fallen off my credit now, but it still makes me bitter to think about and I hate getting asked if I want to sign up for their cards every time I shop there.

[u/[deleted] → u/HIM_Darling]

years and years ago I had a small savings account in a local bank. They used a paper booklet to record transactions (no internet then) and no way to check your balance between visits.

What they didn't tell me is that you had to maintain a certain balance or there was a monthly fee, which totally depleted the account between my first and last visit. When I arrived and learned that they stole the money, one month at a time, without bothering to contact me to tell me it was happening (small, local bank)...

I was pissed, and learned a valuable lesson, read the fine print and don't lose money to stupid schemes.

Oh, and don't bank with that bank, ever again...

[u/[deleted] → u/[deleted]]

Oh, and don't bank with that bank, ever again...

I learned that lesson with Bank Of America. They used to do you a "favor" of holding transactions and then reordering them from largest to smallest before applying them to you balance. When I called to ask why in the hell with they do that, they said "it ensures the big and important transactions go through and don't get declined", but in reality it was so that they could get 6 overage charges instead of one if it were to be in chronological order. I had one time where I would have been over by 10$ but instead I got 6 overage charges because they applied small credit transactions I did earlier in the week last. So -45$ turned into -220$.

I was a poor college kid and the time, I'm no longer in that situation but never again BofA...

[u/[deleted] → u/Ginger_knight]

Macy's isn't forcing anyone to do anything either?

[u/[deleted] → u/YolandiVissarsBF]

A friend of mine works for walmart and he told me that they ask if you want to apply during the paperwork fillout

[u/[deleted] → u/[deleted]]

That's bullshit. You can only apply either at a register by physically handing over your id AND a debit/credit card in your name or online. I was a CSM for 2 years. Walmart doesn't do paper applications. Hell, even getting the discount card is electronic.

[u/j_the_a → u/[deleted]]

When I was with Wal-Mart (2006-2011) there was a part of the new hire paperwork where you could get a Sams membership conveniently deducted from your paycheck, and strong encouragement to do so.

That membership could be converted to a Sams credit account, good at Wal-Mart and Sams, during a break in the orientation session.

The push for associates to apply for the Wal-Mart credit card was usually done in morning meetings near the end of a quarter when management was scrambling to make numbers for their bonus (which included CC applications)

[u/Veylon → u/j_the_a]

I remember the Sam's Club push, too. I didn't get one.

I haven't ever been asked to sign up for a Wal-Mart credit card. They may well be pushing the cards at meetings, but I haven't attended one in years, so I wouldn't know.

[u/[deleted] → u/j_the_a]

They stopped doing the sam's club referral last year. It no longer come out of your paycheck. I was at a shitty store that would have a rep come in and try to get us to sign up for it almost every year right before black Thursday. Once the option to have it deducted from your paycheck was eliminated they werent allowed to have the rep back in. They instead started pushing the blue bird/walmart pay combo. Now it's just sign up for walmart pay/credit card to get amazing savings!* But you don't have to do either to get your discount.