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“Why does Northwest Airlines treat its own gift certificates like dirt?”

January 20, 2009

For her 35th wedding anniversary, Cheryl Cantillon’s children gave her a Northwest Airlines gift certificate. But when she tried to redeem the voucher for a ticket, the airline told her she’d have to wait. Now, bear in mind that someone paid cash for these vouchers and hoped Cantillon would use them for a flight — soon.

No can do, said Northwest. She would have to wait 10 days before she could buy a ticket. What’s more, the vouchers needed to be processed manually through one of Northwest’s call centers in India.

This means that you are paying human beings to do something that a computer can do. There is no business reason these gift certificate flights (with a credit card backup) can’t be handled the same way as any other credit card purchase.

Why does Northwest Airlines treat its own gift certificates like dirt?

I recommended Cantillon contact Northwest at a higher level with this question. She did, and the airline got back to her uncharacteristically fast.

Thank you for your email to Andy Roberts and Kristen Shovlin. They have asked that I respond to your concerns and extend their personal apologies for any confusion regarding the use of our gift certificates.

Please know gift certificates are electronic documents that can be issued by our automated process. However, if a gift certificate is purchased and redeemed on the same day, which is the case in this instance, due to security and fraud issues, the original credit card purchase must be verified prior to the issuance of the actual ticket.

While the itinerary and fare are confirmed, the tickets remain on queue for ticketing until the original purchase is verified. This process is in place for the protection of the credit card holder. Thank you for your understanding in this matter.

With that said, I have reviewed your reservation and have verified that the tickets have been issued for you upcoming trip to San Francisco. Thank you for choosing Northwest, I hope your trip is pleasant in every respect

In other words, Northwest doesn’t treat its gift certificates like dirt. But Cantillon’s kids probably could have saved themselves a lot of trouble by just buying their mother a ticket to San Francisco.

Christopher Elliott is the author of Scammed: How to Save Your Money and Find Better Service in a World of Schemes, Swindles, and Shady Deals. Critics have called it “eye-opening” and “inspiring” — it’ll “grab your attention and won’t let go.” Order your copy now on Amazon, Barnes & Noble or iTunes.

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15 comments

  • http://cestbeth.com Beth

    Northwest also allows you to create an online Gift Registry, which is much easier to redeem against a ticket than a certificate or card. This is the link: https://www.nwa.com/GR/.

  • John

    Northwest actually did the right thing, by making people wait after purchasing a gift card is a smart Idea. the 10 day wait period is a good fraud protection.

  • http://getahotelroom.blogspot.com Don

    I’m wondering if the terms of the 10-day waiting period were clear at the time of purchase? If not, why?

  • Linu

    I feel that security for the credit card holder is now top priority, but terms should have been mentioned to the buyer before hand and, oh please don’t blame India for this!! In fact does NWA have a call center in India, in their website they do not mention this! It was better to buy the ticket to SFO and present it to her personally/mail, and that would have been RIGHT choice!

  • Mike

    In a time of fraud and identity theft I am glad that there would be a waiting period for a transaction such as this. Perhaps the reasoning behind the wait wasn’t readily apparent or explained to Mrs. Cantillon.

  • Brian Caldwell

    I’m so sick and tired of these companies that invent rules “for your protection”. I reject their explanations entirely and immediately. It’s corporatespeak for essentially CYA. Probably got told to create the rule from some in-house legal type. The only time I’ll allow this is when they take the time to ask me what sort of steps and safeguards would I like for my protection. About only 1 in 100 does that. And even more sadly, most folks seem to just go along with the companies that have these sort of ridiculous rules like sheep. Stand up for your rights people! Don’t let these places dictate to you!

  • Rama

    This is a lousy complaint and don’t understand why you have to publish it. Most credit card transactions take about a day or two to go through although 10 is high. But it is a good fraud protection. From what I understand she tried to buy it the same day, which compounded the problem. I don’t understand why you blame India instead of Wall street’s/Company management’s greed.

  • Carver Farrow

    This makes no sense to me. Perhaps someone can explain how the gift certificate transaction is any less secure than had the children just bought a ticket for the parents. I don’t see how this waiting period prevents fraud or ID theft.

    This is particularly egregious as the article suggests that the children paid CASH.

    This seems like a way for NW to get an interest free loan.

  • David Z

    The only time I’ll allow this is when they take the time to ask me what sort of steps and safeguards would I like for my protection.

    That’ll be nice. One catch to that, though, is some (if not many) people don’t want to deal with the inconveniences of verifying their purchase.

    Let’s face it: many people want it now as in now. But with the unwanted reality of credit card fraud, various businesses are practically forced to ensure credit card purchases aren’t eventually questioned and they getting dinged for it.

    One thing I’m not clear, though, is why 10 days. I can imagine it’s due to the banks since none of them have to be consistent in verifying orders or so, but 10 days is rather a wee bit long.

    Of course, it’s one thing to understand an explanation. It’s another to accept it, which no one’s required to do.

    Unfortunately airlines aren’t required to state those so-called security measures unless, say, any applicable law says so. Then again, neither are passengers required to accept their terms or buy their services if they don’t agree with them.

    (I’m actually in a hurry so I’ll comment more soon, he he.)

  • Jess

    I understand a waiting period if the GCs are bought using a credit card, but the article clearly states that they were paid for with CASH. Did her children walk up to a Northwest counter and purchase the GCs? If so, the airline’s response isn’t applicable in this case. If there is a waiting period, for whatever reason, it should be clearly printed on the voucher.

  • David Z

    Whoops, I forgot the article stated the vouchers were paid for in cash. That’s what happens when one posts in a hurry, just because one’s thoughts were fresh that time. :(

    And agree with you, Jess, that the vouchers ought to state the waiting period. But re-reading NW’s quoted response, it appears they’re referring to verifying the ticket purchase rather than the voucher itself.

    That quote practically confirms what I learned in my travel agency days: airline ticket purchases are what I consider a 3-part process. First is they reserve the flight and “take” the payment, then they verify the order if it’s legitimate or not (and allow time to undo it for mistakes), then they finally issue a ticket once everything checks out.

    Still, it’s rather bothersome the person in question had to go through all that…all for a gift certificate paid for in cash. Sigh.

  • Carver

    @David Z

    I understand the corporatespeak about credit card fraud, but it rings hollow.

    From my computer here is California, I can buy you a ticket, online, and you’ll be flying tomorrow morning if not sooner. No credit card is swiped, my identify never verified, no driver’s license ever looked at.

    How is that transaction more secure than a gift card transaction or less prone to credit card fraud?

    It doesn’t add up even a little bit.

  • David Z

    How is that transaction more secure than a gift card transaction or less prone to credit card fraud?

    Hi Carver,

    Actually I’m rather confused by some things here. Chris’ article stated the vouchers were paid for in cash, while NW’s email said the credit card purchase must be verified prior to the ticket’s issuance.

    The way I understood what’s stated so far, NW is verifying the cc purchase of the ticket rather than the voucher. Then the email said the vouchers are electronic documents which need to be manually processed by their Indian call center.

    I’ve re-read it at least 4 times, and I’m still scratching my head trying to reconcile what’s posted here with what I know and learned from my previous life in the travel agency business. But even the travel agency I worked with gets complaints of unauthorized online cc ticket purchases and, believe it or not, chargebacks!

    It’s the latter that, I’d say, airlines and travel agencies are trying to avoid more. If the cc holder <bsuccessfully disputes it with their bank, the merchant loses the originally-paid money and gets hit with a “chargeback fee” by the bank or so.

    I even wonder if the NW person who emailed fully researched the whole thing prior to sending that out. I agree with you this whole thing doesn’t really add up, inspite of what I “intimately” know of the biz.

  • Carver

    @david z

    Exactly,

    Even regular cc purchases are subject to chargebacks yet the airlines let these go through electronically with just a few hours notice. But through in vouchers and all hell breaks loose???

  • Paul

    I was unaware that NW had a call centre in India. In fact, I thought they were one of the few US airlines that prides itself on hiring American’s in America to run their call centres. I believe there is one in Seattle, Tampa, Baltimore, Sioux Falls, Minneapolis, and Chisholm. An office in Singapore handles their large Asian bookings.

    Perhaps someone can explain this India call centre that Northwest claims not to have?

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