Well, it depends on what option she selected when she used her debit card -- the credit card option (since most carry a VISA logo) or the debit card option. The debit card option ensures that there are sufficient funds available before approving the purchase, so the merchant can rest assured that they will get the money.

It's Target's policy not to offer cash back on returns of purchases made with debit cards, not the law or bank policy. And considering that after she completed the transaction, she no longer had access to the funds, I'm not all that surprised she wanted cash back rather than a shitty gift card that is often lost (in fact, merchants count on gift cards going unredeemed).

Many merchants are more customer friendly and offer cash as an option for returns of purchases made with a debit card. When I worked in the CVS PhotoLab in high school we didn't just offer cash, it was our only return option. So maybe she was just used to those more accommodating merchants.

Also, I will fight with any front-line customer service rep / geek squad person until I see the manager because 8 times out of 10, I'll get my way with the manager. This is how business works. The front-line people are given a script that they can't deviate from but the higher you go up, the more leeway they have. Are you telling me that the store manager couldn't have given her a cash refund if he really wanted to? Doubtful, but since it's target, maybe.

Long story short, I think its your fault for working customer service and your store's fault for having shitty policies regarding debit card refunds, not the lady's. She was just trying to get the cash back that she spent.

I couldnt have said it better myself. Debt card is the same as cash to be honest. she should have been able to get the cash back. I'll think twice before i buy anything at target now.