Page 2 of 9 FirstFirst 12345 ... LastLast
Results 16 to 30 of 134
  1. #16
    I don't know about in the U.S., but in Canada, if you have a pre-authorized debit from your chequing account set up and you decide you for whatever reason to stop that process, you can send back or reject any pre-authorized debits that went through your account in the list six months free of charge. The bank sends it back to the payee as "not authorized" and the payee, if it's authorized, sends the customer an invoice or bill. If it's truly an error, then it's done what it is supposed to do - protect customers from this sort of thing by crediting their account and reversing erroneous service fees as a result.

    Nonetheless, this is a huge reputation hit for DreamHost. They will lose customers, likely in the thousands, but to what extent depends on they handle the aftermath and if every customer is satisfied. Each customer should have their bank accounts or credit cards credited fully, service fees reversed by the bank or covered by DreamHost and provided with 6 months of free hosting for the trouble. Even big, evil Endurance International Group (formerly known as Caird Corp and, before that, BizLand Inc) gave PowWeb customers 6 months free hosting for the problems suffered and downtime endured during their "server migration". Billing issues are, perhaps, the most serious error a web hosting company can make because you're dealing with people's money.

    Cheers,
    Doug
      0 Not allowed!

  2. #17
    Thankfully I was one who had not set autorebill on. muhahahahahaha.
      0 Not allowed!

  3. #18
    Join Date
    Jul 2006
    Posts
    647
    Mistakes happen, and when one like this occurs you can probably count on it not happening again.

      0 Not allowed!

  4. #19
    Still, DreamHost should feel obligated to compensate its customers. Even three months hosting would be the decent thing to do.

    Cheers,
    Doug
      0 Not allowed!

  5. #20
    Join Date
    Dec 2002
    Location
    texas
    Posts
    1,333
    If they billed 7.5 million at a 3% merchant rate this mistake will cost them $225,000 in merchant fees. Of course you would need to factor in somewhere around 2.5million in papal that's unaffected and about another 20% for cards that declined.

    I'm assuming they voided out all the charges before they settled. If they didn't they will be paying an additional 3% to issue refunds.

    My guess is that they will have somewhere around $10,000 in reimbursing to do for overdraft fees.

    The amount of chargebacks they have this month will probably 10x resulting in $10,000's in additional chargebacks and fees. The crazy thing is that you can actually do a chargeback even if you already got your money back from a refund. It happens to us all the time....

    The customer loss from it will probably be significantly less then one day of signups for them. The real damage is going to be with their reputation and trying to catch up on work load.
    Dreamhost is having one of the worst days they are ever going to have right now. If you were one of the people affected try to go easy on them while they get everything under control. I'm sure in a few days times they will have everything corrected and will reimburse you for any losses that have occurred.
      0 Not allowed!

  6. #21
    Quote Originally Posted by dwrunyon View Post
    Mistakes happen, and when one like this occurs you can probably count on it not happening again.
    Yes, mistakes do happen - however the way that Josh (from Dreamhost) explained and commented on the issue on their blog was not a good one. (Referring to the jokes he's pulling.)

    In times like these he should have been utterly sincere and more or less "crawled to the cross".

    With that said, I'll still utilize Dreamhost as a hosting provider, though I do not agree with how they as a company has dealt with their crisis management.
      0 Not allowed!

  7. #22
    Join Date
    Jul 2006
    Posts
    647
    Quote Originally Posted by hostgator.com View Post
    If you were one of the people affected try to go easy on them while they get everything under control. I'm sure in a few days times they will have everything corrected and will reimburse you for any losses that have occurred.
    Agreed.

    They've now posted about this on their regular blog, and it specifically mentions righting overdrafts too.

      0 Not allowed!

  8. #23
    Join Date
    Jul 2006
    Posts
    647
    Quote Originally Posted by Henrik View Post
    the way that Josh (from Dreamhost) explained and commented on the issue on their blog was not a good one. (Referring to the jokes he's pulling.)
    I thought it was pretty funny (the Homer pic and the reference to the last newsletter).

      0 Not allowed!

  9. #24
    Join Date
    May 2006
    Posts
    872
    Quote Originally Posted by dmehus View Post
    Still, DreamHost should feel obligated to compensate its customers. Even three months hosting would be the decent thing to do.

    Cheers,
    Doug
    Are you serious?
    hosted by HawkHost
    I Recommend: LimeStone Networks!
    The OverSeller Defender!
      0 Not allowed!

  10. #25
    Join Date
    May 2001
    Location
    Dayton, Ohio
    Posts
    4,909
    I'd be rather interested to hear who their merchant account is with, since every provider I've worked with would have stopped accepting charges after a certain limit. I doubt they do $7.5M in charges a day so their merchant account shouldn't have been accepting that much or should have at least been flagged and the account owner contacted. Finding out about this 'mistake' by seeing an strange report is ridiculous!

    I've been reading the comments after the blog post explaining what happened and I have to say this was the best comment:
    # Leaving Says:
    January 15th, 2008 at 11:01 am

    Well, I’ll be leaving. And I don’t have autobill and I paid via PayPal so I didn’t even get charged.

    I am leaving, even with six months left on my plan, because I do not like the light tone. This is not transparent, this is moronic. This is high school.

    When you deal with people’s money, you take it seriously. There’s a few shades of gray inbetween IBM and the Simpsons. For example:

    “Dear Valued Dreamhost Customer:

    We made a major mistake last night. We’ll be writing up a detailed post on exactly what happened, and posting it to our blog (located at: blahblahblah) if you would like to know more.

    Everyone was billed in error yesterday, some of you multiple times. We are currently in the process of refunding all of the money taken from people we shouldn’t have taken it from. If you feel you need to call your bank and credit card company, of course you have every right to do so. I can assure you that we are dealing with each and every overage as quickly as possible, and that you don’t need to make that call, but we would never presume to tell you how to handle your personal (or company) finances.

    There’s no excuse for the error except human error. We realize that we have put people into difficult financial and professional situations, and we deeply regret that our actions have caused any inconvenience whatsoever.

    Some of you will already see refunds. If you have gotten a refund, and there are other extenuating circumstances (overdraft fees, exchange rates), please contact us at this special address we’ve set up to deal with individual issues from the billing snafu: blah@blah.com.

    You should see your refund by DATE, TIME. If you do not have your refund by DATE, TIME, please contact the billing address above and we’ll get right on it.

    Everyone here at Dreamhost will be working around the clock to make this right for everyone, down to the last customer.

    Also, we will be compensating every last customer for the inconvenience caused by this issue. We haven’t had time to discuss what form that would take yet, and we hope you understand when I say that we need to focus on other issues first. But we will be providing every customer with some type of credit or other gesture to apologize for our error.

    Finally, I’d like to thank you for being a Dreamhost customer. There’s no shortage of hosting choices and you choose to give us your money every month. We wouldn’t be here without your patronage and we understand that.

    Sincerely,

    Dreamhost Poobah
    Last edited by The Prohacker; 01-15-2008 at 03:25 PM.
    -Mat
      0 Not allowed!

  11. #26
    Join Date
    Oct 2002
    Location
    Snohomish, WA, USA
    Posts
    5,044
    Looks like at least one vulture found the blog and is posting affiliate links to other companies in the comments. I guess every industry has their ambulance chasers .
    A serial entrepreneur is someone who effectively manages startups within their means to manage them, not someone who runs 30 different business ideas at once hoping one works. If I wanted to hire someone to throw things at a wall to see what sticks, I'd hire a two year old.
      0 Not allowed!

  12. #27
    Quote Originally Posted by dwrunyon View Post
    I thought it was pretty funny (the Homer pic and the reference to the last newsletter).
    You have to understand the situation and feel empathy for other clients. It was not handled in a correct manner.

    I can surely see the comedic points, but the key to good comedy is... timing.
      0 Not allowed!

  13. #28
    Join Date
    Dec 2007
    Posts
    57
    Of course, poor customers, but also poor Dreamhost. They are a really good company, sh#t just happens sometimes, and it may happen to another company later. I still think Dreamhost is one of the companies that most struggle to have a good service and product for a reasonable monthly fee. The features they offer are really good, also, I love their web panel. The marketing the have is very very good, the community and brand recognition also. I hope the damage will be limited and soon everybody forgets about what happened today.

    Will Dreamhost double our disk space and bandwidth for what happened?
    openSUSE user
      0 Not allowed!

  14. #29
    Join Date
    Aug 2003
    Location
    Utah
    Posts
    274
    Good lord! Their message on their blog says to IGNORE THE EMAIL when in fact, customers WERE BILLED/CHARGED. This is crazy. Some use debit cards, so they can say hello to overdraft fees, bounce fees, or bank fees if when their act falls below $xxx.xx as some banks do.

    They need to correct that blog post and mention they will be crediting fees....
    BestVPSReviews.com - KnownHost VPS? Liquid Web VPS? See my personal experience with these hosts.
    Best Web Hosting - The Best Web Hosting Deals and News
      0 Not allowed!

  15. #30
    Join Date
    May 2006
    Posts
    872
    Quote Originally Posted by HostingDeals View Post
    Good lord! Their message on their blog says to IGNORE THE EMAIL when in fact, customers WERE BILLED/CHARGED. This is crazy. Some use debit cards, so they can say hello to overdraft fees, bounce fees, or bank fees if when their act falls below $xxx.xx as some banks do.

    They need to correct that blog post and mention they will be crediting fees....
    Did you not read this thread?
    hosted by HawkHost
    I Recommend: LimeStone Networks!
    The OverSeller Defender!
      0 Not allowed!

Page 2 of 9 FirstFirst 12345 ... LastLast

Related Posts from theWHIR.com

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •