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

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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:

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:

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:

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:

My reply:[/I]

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:

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.

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. At your earliest convenience, please contact Alex at [email protected] or at 800-390-1119 ( dial 25040 immediately ) for further assistance in this matter.

Thank you.
 
No doubt the newegg reply will be the same macro.


Contact me at this # blah blah blah.

sucks man.

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. At your earliest convenience, please contact Alex at [email protected] or at 800-390-1119 ( dial 25040 immediately ) for further assistance in this matter.

Thank you.

cough cough
 
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. =(

I don't think it's a matter of not caring (though that has to fit into the priority equation somewhere for a business owner). Rather, customer service doesn't scale well when your sales increase exponentially as NewEgg's have over the past five years.

To the NewEgg representative: A genuine thanks for your reply. I'll contact Alex later this afternoon.

SSS and muddocker: I appreciate the advocacy. Hopefully this will be resolved amicably.
 
i had something similar done to my newegg account... only this is my situation.... i bought a computer for my mom using her credit card.... i check back a week later to see whats taking so long ... i usually get newegg purchases within 2-3 days with standard shipping..... only to find there is no order.... i'm like well that's wierd ... i'll order again.... so i order it again.... everything's fine right? .... nope .... i get the order and i'm fine for a good 6 months .... 6 months later i try ordering something.... no go.... they put a hold on my account because they said i had been shipped 2 computers and had only paid for one of them.... i immedietly contact newegg cs and talk to them ... they tell me there is nothing they can do ... i talk to this alex guy on ocf.... and he says he can help me out.... guess what... he can't .... so now my newegg account is banned and any other one i make with the same address.... how ****ed is that?.... i'd be happy to return the other computer ..... IF I HAD EVER GOTTEN IT .... thanks newegg CS
 
i had something similar done to my newegg account... only this is my situation.... i bought a computer for my mom using her credit card.... i check back a week later to see whats taking so long ... i usually get newegg purchases within 2-3 days with standard shipping..... only to find there is no order.... i'm like well that's wierd ... i'll order again.... so i order it again.... everything's fine right? .... nope .... i get the order and i'm fine for a good 6 months .... 6 months later i try ordering something.... no go.... they put a hold on my account because they said i had been shipped 2 computers and had only paid for one of them.... i immedietly contact newegg cs and talk to them ... they tell me there is nothing they can do ... i talk to this alex guy on ocf.... and he says he can help me out.... guess what... he can't .... so now my newegg account is banned and any other one i make with the same address.... how ****ed is that?.... i'd be happy to return the other computer ..... IF I HAD EVER GOTTEN IT .... thanks newegg CS

I'm not questioning your story, but it's fairly easy to check with UPS, FedEx and DHL to see if a shipment ever made it to your house. USPS is a bit more difficult, but it can be done.
 
Wow, this is definitely disturbing to say the least. I pretty much exclusively shop at newegg and then I see something like this?! The most disturbing part to me is the fact that they suspended jimmsch's account, WTF!!!!?? I have to be honest, I look to these forums for reviews and past experiences and I respect and trust aaronjb's opinions so this sucks to see what I thought was a great company have such a negative impact on a couple of fellow oc members! I really hope we don't start seeing a trend here ......:confused:
 
I'm not questioning your story, but it's fairly easy to check with UPS, FedEx and DHL to see if a shipment ever made it to your house. USPS is a bit more difficult, but it can be done.

there was no shipment whatsoever.... it wasn't even in my account info... so i re-ordered it and they said they sent me 2
 
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. At your earliest convenience, please contact Alex at [email protected] or at 800-390-1119 ( dial 25040 immediately ) for further assistance in this matter.

Thank you.

Huh... .Well.. Every week I see another horror story from newegg. I've decided not to use newegg anymore and tell everyone I know to stray from newegg if at all possible. Losing 280 dollars is unacceptable and is something I cannot afford. Will not take this risk.
 
While it stinks, I am not gonna pull a "omg im dumping newegg all of the sudden" stunt.

I've had 100 smooth orders before I didnt. And I'm sure many others have as well.

While I don't doubt that screwups do happen, I think its rather pathetic that people would declare jumping ship so quickly. If you did that for every bad story you heard, you would never buy anything, wear anything, trust anyone. have children or even leave your house.

Wake up people...
 
While it stinks, I am not gonna pull a "omg im dumping newegg all of the sudden" stunt.

I've had 100 smooth orders before I didnt. And I'm sure many others have as well.

While I don't doubt that screwups do happen, I think its rather pathetic that people would declare jumping ship so quickly. If you did that for every bad story you heard, you would never buy anything, wear anything, trust anyone. have children or even leave your house.

Wake up people...

Maybe this type of service is acceptable to you but not even close for me and I'm sure for countless others. I'm not saying I'm jumping ship but damn, I hope we don't start seeing a flood of Newegg horror stories!
 
I never said it was acceptable and I hope we dont start seeing a "flood" of negativity. But I sure as hell wouldnt limit my feedback from vendors to a small forum section on 1 site. Although I value ocforum members' opinions, I am not that close minded.
 
Its not that I want to jump ship, its just the fact as a financially struggling college student, I can't afford to loose anywhere near that amount of money. Its too risky, I don't like gambling anyways.
 
Thank God we have forums such as this for us to see if Newegg can come to an amicable agreement and settlement with aaronjb and jimmsch. I am sure that they should update us on whether Newegg makes it good for them. While i hate to see this kind of thing happening, it's all in how well Newegg does to rectify this situation that will matter in the end.
 
Thank God we have forums such as this for us to see if Newegg can come to an amicable agreement and settlement with aaronjb and jimmsch. I am sure that they should update us on whether Newegg makes it good for them. While i hate to see this kind of thing happening, it's all in how well Newegg does to rectify this situation that will matter in the end.

Yeah, only if someone posts their story on a forum. Not everybody has access to forums like these. All of my friends don't they all got banned because of an idiot mod who will remain nameless.
 
While it stinks, I am not gonna pull a "omg im dumping newegg all of the sudden" stunt.

I've had 100 smooth orders before I didnt. And I'm sure many others have as well.

While I don't doubt that screwups do happen, I think its rather pathetic that people would declare jumping ship so quickly. If you did that for every bad story you heard, you would never buy anything, wear anything, trust anyone. have children or even leave your house.

Wake up people...

... IF i nor my address was banned .... i'd probably still be using newegg.... it's a big company not EVERYTHING is going to go smooth .... it just really sucks that NO ONE from newegg even tried to help me ... they said we need proof... i told them to check in my "account Info" and they said that it proved nothing
 
Yeah, only if someone posts their story on a forum. Not everybody has access to forums like these. All of my friends don't they all got banned because of an idiot mod who will remain nameless.

lols i'm guessing you should just keep quite or your friends won't be the only people without access to forums like these
 
lols i'm guessing you should just keep quite or your friends won't be the only people without access to forums like these

Eh, I'm not worried about it. Theres all sorts of forums like hardforum.com which is a pretty cool site. Still about this newegg business. Its a shame, I was going to order my next rig from there.
 
My account was reinstated the same day I noticed it was suspended. First I called CS and was told by the rep there that "I will look into it". This wasn't a good enough answer for me since there was $280 of my money at stake here, so I went to their live chat. The chat ended with me typing something with the word "attorney" in it

Less than ten minutes (literally) later my phone was ringing. It was NewEgg fraud prevention dept. My account was quickly reinstated and I was told that the GC will still be available. I believe all of this happened in the first week of August, like I said earlier I lost all of my emails regarding this matter in a HDD crash.

It finally all got settled and I recieved the USPS M.O from Aaron about two weeks ago.

The thing is they kept changing their story and finally came up with the idea that the GC was voided and the money refunded on the same day it was purchased. But it took them approx an entire month of phone calls, emails and live chats to figure this out. The big problem with this story is: The GC was voided alright...but...the money was NEVER refunded. Aaron had to go through his bank and do a charge back.

As far as I know my account is still in good standing over there...not that I will need it.
 
Thank you for posting up the ending of your part of this Newegg fiasco, jimmsch. If I were in your shoes I'd be very leery of doing business with them too, after having my account suspended for no reason.
 
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