Samsung offers Galaxy Note 7 owners $100 incentive to trade in device

SEOUL, South Korea — Samsung is offering a $100 credit to those who trade in their faulty Galaxy Note 7 for any other Samsung phone.

The news comes a day before Samsung rolls out a new exchange program.

In August, the company issued a massive recall of 2.5 million Note 7 smartphones because of overheating batteries.  Earlier this week, it stopped production and sales of the Note 7 following complaints that replacement devices were catching fire.

For users who already traded in their device for another Samsung smartphone, the company will issue a $75 credit. This is on top of the $25 it originally gave those users.

Note 7 owners who want a full refund will receive $25 bill credit as a token of “appreciation and acknowledgment of your inconvenience,” the company said on its exchange program page. Users who choose a non-Samsung branded device will also get a $25 credit.

While Samsung is offering ways to return Note 7 phones via mail — in fact, it is shipping users fireproof boxes and safety gloves to keep the process safe — there are complications with getting the devices back to the company.

The U.S. Department of Transportation is prohibiting air shipments for recalled lithium battery products, which impacts deliveries from FedEx, UPS and USPS. Meanwhile, FedEx Ground will only accept packages if it meets “strict regulatory guidelines,” a FedEx spokeswoman said.

Experts believe the debacle will cost Samsung $9.5 billion in sales.