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(Resolved) NewEgg - Gift Card purchase leads to Account Suspensions

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aaronjb

Member
Joined
Feb 8, 2006
I'll make this as brief as possible, but let's start from the top. NewEgg represetative on these forums, feel free to chime in with your company's side of the story. I'm anxiously awaiting to hear how your company publicly responds to a situation after previous attempts to resolve it failed.

On 7/27, I make a purchase of a Gift Card at NewEgg, using my Verified by Visa debit card, in the amount of $280.00. This was my payment for a trade with OCF member jimmsch for an Intel q6600 processor (trade was conducted through the classifieds in the normal manner). Here's the NewEgg invoice number:

Invoice #: 27452183 - $280.00

Note that NewEgg only accepts Verified by Visa (a Visa-sponsored program) for the gift card purchases. This gift card was sent to jimmsch's e-mail address - the same e-mail address he used to conduct business at NewEgg. On 7/28, after receiving confirmation of the Gift Card, jimmsch ships the q6600.

Days later, the q6600 arrives at my door. Transaction done, positive heat left on both ends. Deal over....

----

... not so fast. On 8/14, jimmsch contacts me with the following PM:

NewEgg has suspended my account for reasons not apparant to me quite yet, but it has something to do with fraudulent activity, most likely connected to the GC you sent me for the Q6600.

If you recieve any info on this please inform me, as I now have no chance of acquiring anything with this GC, therefore basically losing $280.
Ok, something is up. A simple call to NewEgg should resolve this, correct? After waiting on hold for some time, I decided to go the chat route. Here is a transcript of the chat log:

[FONT=arial,arial,helvetica,geneva] chatinfo.gif Please wait while we connect you to a Newegg representative.
chatinfo.gif Thank you for contacting Newegg. My name is Gilbert. How may I assist you today?
Aaron Barnes: Hello there.
Aaron Barnes: I recently purchased a Gift Certificate for someone, and that individual has relayed to me that their account has been suspended due to fraud based on that GC purchase
Aaron Barnes: However, I have been charged the full price of the Gift Certificate - can you shed any light on this situation for me?
Gilbert:Let me take a look into that......one moment please.
Gilbert:I do show the gift certificate. By any chance would you have an email address for that other person?
Aaron Barnes: Let me get that for you.
Aaron Barnes: ---------@--------- [hidden purposely]
Gilbert:Give me a couple of moments please..
Aaron Barnes: no problem
Gilbert: I would need to get back with you. would it be ok if I send you an email once I get more information?
Aaron Barnes: Yes, please do. I'd like to get this sorted out ASAP, as the $280.00 has been charged but the person can't access the GC. If the account was suspended for reasons other than this GC transaction, then that's not my concern; but I'd either like this to be cleared up, or to have the $280.00 refunded.
Aaron Barnes: Thanks for your time, look forward to hearing from you soon.
Gilbert:I understand and I will get back to you as soon as I can with more information.
Aaron Barnes: --------@--------- [hidden purposely]
Gilbert: Do you have any other questions, or is there anything else I can assist you with today?
Aaron Barnes: That is all, thank you.
[/FONT]
Meanwhile, jimmsch is getting changing/conflicting stories from NewEgg about why the GC was cancelled (after he was allowed to spend $3.00 of it), and why his account was suspended.

Both Jimmsch and I are bounced around the halls of NewEgg customer support until 8/31, when NewEgg CS representative Timon A. Camacho contacts me with the following e-mail:

The Gift card purchased on 07/27/07 was purchased on 07/27/07 and voided the same day in the amount of $280, when it was attempted to be used on order 62129232 it triggered a fraud alert on that account which caused it to be suspended. I am currently looking in to why the order was voided however at this time the funds should be in your Visa account.

Please contact Visa and check for the refund, if they require a conference call please call 800-390-1119 and ask for Timon.


Visa Reference ID:######## ####
I contact my bank - Bank of America - at both the national CS number and the local branch. The "Reference ID" provided above means nothing to Bank of America; it's a number issued by NewEgg's CC processing company and has no relevance to BoA.

Furthermore, NewEgg is unable, after several e-mail exhanges, to explain how or why the GC was voided, or by whom. They are unable (not unwilling, but unable) to provide insight into the "fraud alert". My credit card is in good standing with NewEgg and other vendors, and jimmsch's NewEgg account was in good standing until this transaction.

After a back and forth with CS Rep Timon, I decide to try a conference call with my bank, but quickly abort the call when I realize my account information, including balance and recent transactions, is read by default when I call the 1-800 number. I call BoA on my own accord, and again verify that NewEgg never initiated a refund. I'm also told by the BoA customer service representative that a three-way call such as this should not be necessary for NewEgg to verify that a refund has been initiated.

In other words, NewEgg isn't believing me when I tell them that I have not seen a refund or the initiation of a refund on my end. NewEgg can, through their CC processor, check this on their end, but for some reason refuse to do so.

Here's Timon's final e-mail to me, followed by my reply. Understand that both jimmsch and myself had been in contact with NewEgg multiple times over the course of the month of August, with no successful resolution or hint of help at resolution from NewEgg.

Timon A. Camacho:


Dear Aaron,

We understand how you can feel threatened with the security of your
personal information, however I assure you that there is no security
risk with a conference call. The only individuals on the line would be
yourself, the bank and I here at Newegg on a secure line. The
information that you feel would be compromised would be your name,
address, phone number and your credit card number in which this
information is currently on your newegg account, therefore a conference
would not reveal any information that you haven't already provided with
your newegg account.

Since all the information regarding your Bank of America account is
entered by you via your phone key pad when prompted, I have no access
to any new information you provide Bank of America's automated system. A
simple yes or no would be all that we would need from B of A since the
question I would ask would be if a refund was or was not issued. If you
do not feel comfortable with a conference call I would not be able to
assist you further in receiving your refund. In order to resolve this
issue your co-operation is appreciated and needed, otherwise we can not
resolve the problem. You have stated a third party would not be given
any information about your account over the phone, this information is
accurate however a Bank of America representative did state that they
would only provide us this information if you were on the line on a
conference.

Please allow us to help you get this resolved.
My reply:


Timon,

As soon as my checking account balance was read automatically, I hung up the phone. That's not information that I want any third party to be privy to.

To ask that a customer "assist you" in handling a refund is out of the ordinary for any retailer. Why it may very well be the case - for whatever reason - that the refund looks to be processed on your end, my bank has no indication that a refund has been initiated. There should be no interaction needed by me to process a refund, and I'm not sure why such a conference call was ever requested.

Simply put: processing a refund isn't my problem. Since the refund wasn't processed in a timely manner (over one month, by your own admission), I chose to call my bank and begin the claims process. The entire Gift Card purchase was a fiasco from start to finish, and I don't think you ever determined why the Gift Card was voided in the first place (nor has a refund ever appeared on my NewEgg account page). The lack of clear and forthright communication on NewEgg's part created this situation. Please don't offer to "help me" obtain this refund; I've already helped you figure out the issue by initiating a claim with Bank of America.

If this case hasn't been forwarded to a NewEgg Customer Service Supervisor, then I suggest you forward all communication on this matter to such a supervisor. Learn from it, and resolve to staff train your CS department appropriately. I'll never shop with NewEgg again, but I'm sure future customers would appreciate it. I'll certainly be sharing my story with other computer hardware enthusiasts on the forums I frequent.
I initiate a chargeback with Bank of America for the $277.00 remaining Gift Card balance that jimmsch was unable to spend. Sure enough, once NewEgg is contacted by Bank of America, I see the $277.00 credited to my checking account (on 9/10).

And now, when I log in to NewEgg, I see this:

Our system indicates that this account has been suspended. If you have any questions or believe this to be an error, please contact our Customer Service department.
My point: it's neither mine nor jimmsch's fault that NewEgg couldn't get their internal communication together enough to give a straight story, let alone resolve the situation in a timely and satisfactory manner. Had I posted a gripe here on OCF, the situation likely would have been handled quicker, but why should I have to do that? I spent a large portion of my disposable income at NewEgg over the past two years, but the simple act of being a paying customer should afford me better service than what I received.

Here's my advice to NewEgg:
  1. Know when to escalate a situation to a priority CS queue;
  2. Don't tell customers stories to placate them. Find out what went wrong, and don't keep the customer guessing. Inform the customer every step of the way and always be polite. I was stern yet civil with NewEgg, but didn't receive the same courtesy in my phone calls to them;
  3. Learn to use your credit card processor's support contacts to resolve situations like this without the involvement of the customer;
  4. Finally, while I understand the account suspension is the default action after a chargeback, reinstate both mine and jimmsch's accounts. Particularly jimmsch's, since he did nothing wrong. To penalize a paying customer for your own inadequacies is to overestimate your sense of permanence in the retail market.
 
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All I can say is wow.
Maybe PM the NewEgg CS rep account here on the forums. See what he can tell you.
I also agree he should have never lost his account. Thats just ridiculous.
 
Wow....I seriously can't believe that they said that. I highly recommend getting in contact with the service guy here (NewEgg Support) and see what he can do.

What is even worse is, they "refunded" you then locked your account???? :confused:

I may start looking elsewhere if they want to pull this crap to customers...
 
Yup...this happened. It was a royal PITA.

I originally made an order on the GC for parts totalling $277 and then 30 minutes later made another order for I think $16, using the last remaining $3 on the GC. Well, I recieved the second order in the usual 3 days. After waiting a week for the big order I contacted them and the CS rep had no idea why it was taking so long. After another week I contacted them again and still had no idea what the hold up was.

A day or two later I logged into my NE account and found it suspended. This is when I contacted them by phone and was forwarded to their fraud prevention dept. I was told at fraud prevention that my email address to be blacklisted, which I certainly did not ask for at all. My acccount was quickly reinstated and I was told that I can use the GC.

I tried and tried to enter the numbers for the GC but it was not working, so I contact them again.

This time I am told by Timon that he has no idea why it will not work, I must be entering the numbers wrong. I never made a typo by copying and pasting. I call Timon again and I am now told that the GC is in good standing and I can go ahead and use it. Well he was wrong.

The next time I contact Timon I am tols that the GC was voided on the same day it was purchased. He has no idea why or by whom.

So I basically got two or three different stories and poor Aaron has to go through all the trouble of calling the bank etc.

I wish I had emails to share, but I suffered a major crash and had to reformat. :(

Needless to say I am no longr a customer at the egg. We still have no answrers as to why or by whom the GC was voided.
 
Was your methods of contacts only through email and chat? Or did you call them also?
 
Yeah Newegg has recently degraded in Customer Support... What a shame.

isn't always like that? first you got great customer support, and when they get enough customers they don't care as much, because they know their is always a person to replace them. =(
 
man, this sucks. i was going to ask for nothing but newegg gift cards for Xmas too...

tigerdirect - here i come! plus TG is like 4 hours from my house so when it's three day or free shipping it only takes one day.

this sucks man, sorry to here this my benching brother!
 
New egg seems to be going down the hole support wise now a days. I guess thats what happens when a company thinks their getting so big that they can forget the little people.
 
What a disheartening story, I have spent thousands upon thousands at the egg as I am sure many here have.
I have noticed lately alot of other respectable online vendors with the same or better prices. I would hate to stop shopping with them but a story such as this kinda makes you reconsider.
I am excited to see the outcome of this.
 
Thank you for posting this up in such a clear, non-inflammatory manner, aaronjb. I find that Newegg's response to you quite disturbing from what you've posted. And with you asking for the Newegg rep to post his company's side of the story up is a great idea, because frankly I would like to hear how Newegg justifies their actions in tying your money up for over a month and then forcing you to file a dispute to get your money back. Not to mention the way they treated jimmsch also.

I will PM both the Newegg rep here and also flag this for Silversinksam to look into too, as he seems to be able to help get situations sorted with a lot of companies.
 
Yes... Expect to hear from NewEgg soon.

I know some people in higher levels of support there (its a business connection) so if you get a cold shoulder... I'll through some weight around.

Jordan
 
Completely unacceptable. I find that a lot of times people may overreact to newegg not "being newegg" but this is clearly not one of those cases. Newegg is going to loose a lot of business this way because of word of mouth alone.

I wouldn't expect the Newegg rep to come to this thread and post a response.
 
At first was mostly email. After frustration set in it was always by phone.

The outcome was: Once Aaron had his bank initiate a charge back Newegg was very fast to refund the money. I guess a charge back is a very noticeable blemish on their reputation. Aaron then sent me a USPS M.O. once he had the refunded money secure in his bank account.
 
Thanks for the replies, everyone. For the record, yes - jimmsch did get compensated for the CPU, in the form of a trusty USPS MO. Incidentally, USPS didn't declare the MO invalid after I had already purchased it, so there's a lesson to be learned there about picking the right payment option. :)

Was your methods of contacts only through email and chat? Or did you call them also?

Called them a number of times (four, I'd say). Spoke to a few different CS representatives, though I spent more time on hold than anything.

muddocktor said:
Thank you for posting this up in such a clear, non-inflammatory manner, aaronjb. I find that Newegg's response to you quite disturbing from what you've posted. And with you asking for the Newegg rep to post his company's side of the story up is a great idea, because frankly I would like to hear how Newegg justifies their actions in tying your money up for over a month and then forcing you to file a dispute to get your money back. Not to mention the way they treated jimmsch also.

My final email to the NewEgg rep was a bit testy, but I had spent the morning on the phone / chatting via e-mail with them, to no avail. But, I've been in CS positions before, from lowly salesperson to general manager, and I understand the difficulties in pleasing every customer. But like any human, my patience has a threshhold, and NewEgg's continued non-response to the problem throughout the month of August left both jimmsch and I both out $280. Frustrating indeed.

muddocktor said:
I will PM both the Newegg rep here and also flag this for Silversinksam to look into too, as he seems to be able to help get situations sorted with a lot of companies.

I appreciate that. For a number of the same reasons that we all shop at NewEgg, I still enjoyed shopping there. They used me well in the past, and I used them well. The bummer is that a complete breakdown in their internal communication caused them to not only lose two customers, but then bar them from the premises, so to speak. And what if the problem is more insidious (I'm speculating and not alleging here), such as a NewEgg employee playing games with NewEgg's GC program for his or her own benefit?

If my account is suspended permanently, then so be it. But NewEgg forced me to go the chargeback route. To punish jimmsch for any of this is wrong. Jimmsch - is your account still suspended, or is that now sorted out?

That's not to say that jimmsch or I will ever shop there again. But righting this situation would go a long way toward reestablishing what was once a good business relationship.
 
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...just waiting for the newegg support rep...

Dear aaronjb,

Thanks for taking the time to post your informative review. We greatly apologize for any inconvenience you have experienced due to your situation....

Love how they are helpful and responsive to people on the forums/resellerratings, but it cracks me up how *every* response starts with this :D
 
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