1&1 Internet Must Have Defrauded Me? Need help.

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You guys be the judge. If you need screenshots as proof, I am willing to provide.

August 4 - I got a domain from 1&1 Internet using my Visa debit card. I use this card on online purchases because I hate being charged twice. I use this to get airline tickets and other stuff over the internet. I checked my account using my bank's online services and it showed a debit of Php (Philippine Peso) 490 or equivalent to $10+ if converted to USD. I didn't mind at first the bigger deduction since I only got a $6.98 domain from 1&1 and I thought there were other additional charges.

August 6 - I got an email which had the following message:
Thank you for your recent order with 1&1 Internet Inc. Unfortunately, the
payment details provided could not be processed.

Please check your payment details in your 1&1 Control Panel at



You can log in using your Customer ID and the password you chose at sign
up. Once you have logged in, click on the Account tab and then on Credit
Card Details. Please check and make any necessary corrections to your
payment details.

If you need any further help, please call +1 610-560-1620 for assistance.




Sincerely,

Your 1&1 Internet Team
1and1.com

Here was my reply to them:

> I called up my bank to check and they told me that you guys even
debited more than $6.98!
>
> Details below:
>
> August 4 3:51pm amounting to more than Php490.00 in our country's
currency or if converted, equivalent to $8.00! Merchant name 1&1
Internet Inc.
>
> So I would like to know what has happened here. Thank you!


And here was their reply:
Thank you for contacting us.

When you order an account from 1and1 . com or update your billing
information our system processes a phantom charge of $6.00 to make sure
that the card used is valid. Our records indicate that the no invoice
has generated and we have not been able to charge anything to this
account. Do you have more than one account with us? That could explain
why you are seeing a transaction.


If you have any further questions do not hesitate to contact us.


Ok, so WTF is a phantom charge??? I know others would just either debit the whole amount straight like Godaddy, or they would first charge $1.00 then debit the remaining amount.

So to continue, I was already quite enraged! $6.00 in Philippine Peso would only be equivalent to PhP294.00 at an exchange rate of Php49.00 = USD1.00

So here was my reply to them:
> So how do we go about this? Because I was charged for this
transaction and
> I then get an email from u guys saying that I the registration
failed. So
> where is the problem at here? What could you do to rectify this? I
called
> up the bank and they said it was 1 and 1 internet inc.


and I get a reply from them:
Thank you for contacting us.

You will want to contact your bank and ask them to aprove the new charge
of $6.99 and then the $6 charge will roll off over the next few days.

If you have any further questions do not hesitate to contact us.


August 7 - Quite enraged with what is happening, I wrote to them:
> Is there a way where you could just use that $6.00 you guys deducted
and
> apply it into my payment? In fact, it was not only $6.00 that was
deducted
> but it was a whopping $10+! or in Philippine peso, it was 490!

Guys, if you want proof of this, I can even take a screen shot of that transaction and post it here.

To continue, here was their reply:
Unfortunately we cannot force the $6.00 authorization hold to be
debitted from your account, and it was initiated as a hold, and
therefore will never go through.

If you have any further questions do not hesitate to contact us.


August 8 - I got an email from 1&1 saying this:
Thank you for your recent order with 1&1 Internet. Unfortunately your
payment details could not be processed.


Please correct your payment details in your 1&1 Control Panel at


WTF!?!?! More than $10 was deducted and now they will not process this? This is just so BS!!!

I called up my bank and brought this up. They required me to make a dispute letter and submit it to them. Okay, I think this is all 1&1's fault and they should be coordinating with my bank to return what was charged or so called a "phantom charge".

August 10 - I got another email again from them saying:
Thank you for your interest in 1&1 web hosting. Unfortunately, your recent
order with 1&1 Internet was unsuccessful due to incorrect payment details
and will be deleted.



Sincerely,

The 1&1 Internet Team
1and1.com


Please take note, WEB HOSTING! I never even got hosting services from them!!!

So please take note, I got no service from them and yet, they charged me and would take time to return what was charged!

August 13 - I wrote to Godaddy asking if they have any of those phantom charges after my experience with 1&1. Though Godaddy is more expensive, I would rather pay more and be spared of all the BS. Here was Godaddy's reply:
We do not do any pre-authorization charges. We can not speak for other companies though so if you pick a payment option such as PayPal you would need to check with them to see how they process they charges. If you did make a purchase through us then we would charge you the full amount immediately and not have a " phantom " charges.

Please contact us if you need further assistance.

August 19 - Made a follow up and this was the email I got:
Thank you for contacting us.

That $6 hold will be released from your bank within the next couple of
days.



We apologize for any inconvenience we may have caused you.


If you have any further questions do not hesitate to contact us.

August 24 - I made 3 transactions. Weebly, Godaddy and Mycontactform. All went in successful, none of those BS phantom charges. I paid exactly what I had subscribed for. Again, if you guys want me to post the bank statement, I am willing to do so.

At the same time, with a screenshot of my online bank statement, I wrote to 1&1 because I do not think it is right for a company to keep the money they debited without giving me something in return. So here was my email to them:
> To: <billing@
> Sent: Monday, August 24, 2009 1:09 PM
> Subject: Re: C139316679 - 1&1 Internet Inc. Billing Re: C138223321 -
1&1
> Internet Inc. Billing Re: usbilling;General
>
>
> > This is also to dispute that it was not only $6.00 debited from
my
> > account. It is more than $10! I am attaching an updated screenshot
of my
> > online transaction records.
> >
> > As you see, I availed of a domain name instead from Godaddy, even if

> > theres
> > is more expensive after the experience I had with you at 1and1. I
paid a
> > total of $9.17 and in Philippine Peso, the amount deducted was
Php453.40.
> > Now, if you guys claim that a phantom charge of $6.00 was levied,
then
> > how
> > come it is showing that the amount you debited is even more than
what
> > Godaddy had charged me. 1and1 charged me Php490.47! Then you were
all
> > telling me that my transaction did not go through (please read email

> > trail)
> > when you even charged me more than what I wanted to avail for.
> >
> > I want my $10++ or that Php490 back. It was not my bank's problem

> > because
> > I did even more purchases after the Godaddy purchase and all were
> > successful. The problem lies on your system so I do not want to keep
going
> > to my bank. I just want the money aka phantom charge you deducted
from me
> > back.
> >
> > Please do something to rectify this.
> >
> > Thank you!


And here was 1&1's reply that blew my top:
Thank you for contacting us.

According to our system, we show no charge for this account in the
amount stated. We will not be able to see the phantom charge that is
applied to check the payment method as this is never processed.
However,
we will continue to monitor this and should any charge be processed on
our end, we will refund this immediately. I apologize for any
inconvenience this has caused.

If you have any further questions please do not hesitate to contact us.


Guys, at this point, I want to write to some firm or body to investigate this. I know $10 is small but the fact that I they are keeping it in exchange of nothing is something unacceptable. This was the first time this happened to me.

Need your help on what to do.

Thank you!

  • Profile picture of the author Michael Motley
    Sounds like they charged your account $1.00 to test to see if the bank account info was correct.

    Lots of places do that but the amount varies. I think click bank does 2 charges but both are under $1.00. Even my job did similar when i started direct deposit.
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    • Profile picture of the author mondort
      Originally Posted by Michael Motley View Post

      Sounds like they charged your account $1.00 to test to see if the bank account info was correct.

      Lots of places do that but the amount varies. I think click bank does 2 charges but both are under $1.00. Even my job did similar when i started direct deposit.
      Actually, it was not only $1. It was $10++! $1.00 would show as Php49.00 but what was deducted was Php490 or $10! I know many including PayPal and Google deducts $1.00 first then applies the remaining. But with 1&1, it was totally different.

      As they claim, they said a "phantom charge" of $6.00 was done but what is showing is $10.00 if converted. The present conversion rate is Php49.00 to a USD. Assuming lets say that the exchange rate is Php 60 to 1 USD (which is too farfetched already), that would equal to Php360.00 deduction, still far from the Php490 which 1&1 had deducted which they claim was only $6.00.

      All i got was their domain, I never got their webhosting package since Weebly was taking care of that for me. I am sure I clicked only on the domain as the email shows. The domain is only $6.98
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  • Profile picture of the author seasoned
    Maybe they were IDIOTS, and couldn't explain right! The CORRECT way to do this is to do an AUTH(That is processor speak for HOLD the money, and return that you have done so). NO money changes hands, and you are NOT billed or charged ANYTHING! It merely GUARANTEES to them that the money is there. YOUR credit line will appear to have a lower limit although that is ONLY because they hold the credit for the guarantee.

    The idea is that, after the order, you can CAPTURE(That is processor speak for adjust the auth amount, bill it, and transfer it to our account). There is NO guarantee this will work unless supported and the account has enough funds. It should ALSO be noted that exchange rates MIGHT cause a problem. If they do an auto for $6 and it is 490Php, the capture MIGHT be say 500Php and cause a decline. ALSO, the 490 might be sent and be less than $6!

    BTW processors are stupid also. Many DON'T support some things and can cause problems, and there are NO standards as to how to handle a restration type purchase.

    a LOT of things could have caused your problem. Double check with 1&1, and then call your cards bank. If the money WAS sent, DISPUTE IT!

    Steve
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    • Profile picture of the author mondort
      Originally Posted by seasoned View Post

      Maybe they were IDIOTS, and couldn't explain right! The CORRECT way to do this is to do an AUTH(That is processor speak for HOLD the money, and return that you have done so). NO money changes hands, and you are NOT billed or charged ANYTHING! It merely GUARANTEES to them that the money is there. YOUR credit line will appear to have a lower limit although that is ONLY because they hold the credit for the guarantee.

      The idea is that, after the order, you can CAPTURE(That is processor speak for adjust the auth amount, bill it, and transfer it to our account). There is NO guarantee this will work unless supported and the account has enough funds. It should ALSO be noted that exchange rates MIGHT cause a problem. If they do an auto for $6 and it is 490Php, the capture MIGHT be say 500Php and cause a decline. ALSO, the 490 might be sent and be less than $6!

      BTW processors are stupid also. Many DON'T support some things and can cause problems, and there are NO standards as to how to handle a restration type purchase.

      a LOT of things could have caused your problem. Double check with 1&1, and then call your cards bank. If the money WAS sent, DISPUTE IT!

      Steve
      Yes the money was sent, that is why I am disputing this with them which they even do not reply right away. I email both their billing at complaints. It was their last email that blew my top. It was unacceptable at my end.

      So far, this is the only company that I had problems with. I order a lot from Beatport, I got from Godaddy, and some vinyls via internet and I had never experienced yet a problem like this. Even the currency conversion, though not that precise, is not as far fetched as 1&1 is claiming.

      I'll post a screenshot after this. I just need one more post in order to do so.
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      • Profile picture of the author mondort
        Heres a screenshot. I highlighted both my Godaddy and 1&1 transactions. Godaddy charged me $10.17 which reflected as Php453.00 on my account. If 1&1 claims it was only $6.00 they took out as "phantom charge" and they even did not give me the service I want, how come it is reflecting a higher charge than Godaddy.

        Is there any higher body in the US that takes care of these?

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  • Profile picture of the author seasoned
    mondort ,

    The philippines does NOT use a major currency! Even the MAJOR currencies have no REAL standard exchange rate! FOR EXAMPLE, as I write this, one company says that there are 0.6998euros to the dollar. Do you think you will get THAT much? Probably not. You may get fees, and even a percentage tacked on. Also, there may be different valuations. And that is with the POPULAR currencies. Less stable currencies, and ones harder to trade, may have a higher price.

    There is NOBODY in the US that wants to be bothered if you want to ignore that advice. apparently most are happy with 1&1. Talk with 1&1! If they say they haven't received the money, go to your cards bank and DISPUTE IT! SIMPLE! YOU get the money back, and all is fine with the world. WHY bother anyone else? IF you do that and don't get satisfaction, ****THEN**** you can contact the BBB, FTC, AG, etc... Until you do the first 2, the rest is just dumb. It could frustrate things, etc...

    steve
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