Report: #588161

Complaint Review:

  • Submitted: Thu, April 01, 2010
  • Updated: Sat, March 31, 2012
  • Reported By: Patrick — Keyport New Jersey United States of America
    9997 E. Rose Hills Road
    Hacienda Heights, California
    United States of America

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In December of 2009 someone made a fraudulent purchase to for just over $200 using my debit card information. My name was not used on the order at all. Not the billing information or shipping location nor does the shipping address match my address yet the order was processed and shipped. I filed a police report, I filed a claim with Newegg, and last I filed a claim with my bank.

My bank reversed the charge and returned my money to me to later find out that Newegg denied the chargeback resulting in my bank taking back the funds from me in march of 2010.

I went to the local bank branch and made about a dozen phone calls to both Newegg and my bank. My bank states that they can only do one charge back and since Newegg denied the claim I have to deal with Newegg.

Every time I call new egg I ask to speak with a supervisor but I never seem to get that far. Each time I speak with a person at Newegg they tell me a different lie.

First they told me that they did no refuse the charge back but I now have a hard copy what they sent to my bank.

One rep named Ivan told me he was going to send an email to accounting and call me back within 48 hours. I called back a week later and asked to speak with Ivan and the rep I spoke to told me he cant get on the phone due to a bad cough and asked me to email him. I did email him with no response. I guess his cough affects his typing too?

I then spoke to a different rep that said that Ivan was not working that day and she will look into it and email me within 24 hours. I assured her that I was expecting a response or I would be contacting an attorney. It has been 2 days since that last conversation.

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This report was posted on Ripoff Report on 04/01/2010 01:49 AM and is a permanent record located here: The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year. Ripoff Report has an exclusive license to this report. It may not be copied without the written permission of Ripoff Report. READ: Foreign websites steal our content

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Updates & Rebuttals


#1 Consumer Comment did not use resonable fraud control

AUTHOR: nowhay - (United States of America)

In October of 2011 authorized the use of my Mastercard to purchase two Microsoft Office products. These were sent to two different addresses and billed to two different addresses. Neither had my correct phone number and both were ordered, filled and authorized within 6 seconds of each other. Mastercard stated they found no fraud use of my card. So they refused to cancel the charge to my card. Newegg. com rep told me to file a police report. LOL
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#2 UPDATE Employee


AUTHOR: Newegg Support - (USA)

Dear Michael,


I would like to offer my apologizes in reference to the fraudulent charge placed on your credit card. It's unfortunate that someone would take your personal information and credit card information to purchase on our site.


As such I would like to offer my assistance in this matter, as unfortunately I could only speculate as to the reason this order was processed fully without the full order and account details.


You can reach me at or call me at 1800-390-1119 ext 25062 to assist you in  resolving  this issue ASAP .


Thank you.
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#3 Consumer Comment Fraudalent Charges

AUTHOR: Michael - (U.S.A.)

I just has a similar experience with newegg. Two days ago, there were two charges on my credit card - both in the same amount - $584.99. My bank is investigating.

In the meantime, I contacted newegg . . . all they could do was tell me to call the police. What I do not understand - why is newegg not following the policy on their website? Following is their policy. The product was never shipped to me. My bank was never contacted. Why, Newegg, are you not following your written policy? Obviously not a company that one wants to deal with . . .

Address Verification

What is Address Verification?

Address verification is a precautionary measure performs to ensure your safety and deter fraudulent activity. The nature of online shopping does not permit us to request a traditional form of identification, such as a driver's license, like a standard brick & mortar store. We instead conduct address verification through your credit/debit card issuer to confirm your identify and verify the validity of your purchase, ultimately protecting your credit and privacy.

If you wish to ship to an address other than your billing address, please contact your issuing bank and have your shipping destination added as an authorized alternate ship-to address in the record/memo field. We will contact your bank using the bank number you have provided to verify this information after you've placed an order. Please allow an extra day to verify any alternate ship-to address.

Both your billing and shipping addresses must be verified before an order will ship. If you encounter any trouble when attempting to add an alternate shipping address, let the card issuer know that you are placing an online order and that the retailer must verify your personal information before shipment to eliminate the possibility of fraud. Then, simply give us a call at 1-800-390-1119 to let us know and we will re-attempt address verification to complete the processing of your order.

Orders with the same billing and shipping address are more likely to ship same-day.

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#4 Author of original report

How I got it resolved.

AUTHOR: Patrick - (United States of America)

The very last thing I did was call MasterCard direct. It was a MasterCard branded debit card and I found the phone number on The number on the back of the card was for my bank.

The guy on the phone at mastercard suggested I send an email with all the information and attach all my documents the email address is also on

I never received any relpy from MasterCard, my bank or new egg but oddly enough I got my money refunded to my bank account and a letter from the bank stating there was a mistake in the charge and the funds were returned along with any accosiated fees.

I didnt bother to get any further facts since I have my money.

PS I would rather pay twice as much for an item then ever deal with again as they since proved that you do in fact get what you pay for and its not always what comes in the box.

Sincerly, Patrick.

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#5 Consumer Suggestion

future steps to take

AUTHOR: Kristy - (U.S.A.)

there are several things you can do to resolve this issue.

Newegg should be willing to give you the name & address in which the item was shipped to, if they are unwilling/unable to do this.. quoting some type of "privacy issues" for the person that stole your credit card.  they should be willing to voluntarily turn this info over to the City of Industry Police dept.

in this case visit the city of industry CA Police website contact the detective in charge (it's listed on the site) and working with your local Police dept/case# have them sent a Police Officer to Newegg's corporate HQ and have the officer ask to speak with Benard Luthi (Senior VP Newegg) I think it's reasonable for Newegg to give this info to local law enforcement..  if they refuse... talk to your attorney about filing a case in your local city and serving papers on both the company & several executives at Newegg..  if they don't bother to fly out to your location for the Court hearing, you will win a default judgement

assuming Newegg does the right thing and turns over the info..
two other things... file a fraud complaint with the FBI -Internet Crime Complaint center on the offical site  then contact the Police in that personal local city of where the item shipped to see if there have been other fraud reports to that address etc

2nd file a complaint against your Bank.. with the Office of Comptroller of Currency and your local State Banking office. I don't care what the bank policy is, they should send a second chargeback request. the problem here is that you used a Debit -vs- a credit card.. I would also talk with your state  Attorney General's office. lastly talk to the card processor Visa/MC... with online orders there should be a firm rule that Internet Merchant's can *ONLY* sent items to the same billing address as the credit card. unless they received a fax with a copy of a driver's license AND a Notary Pubic stamp

I understand Newegg's point of view here... they received payment & have proof of delivery of the item.. the problem is the alternative address.. which seems to go against the stated policy on their website - keep us updated on this situation

disclaimer: I am a big Newegg customer & have been very happy with their service - so I might be just a little Bias in my response :)
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#6 UPDATE Employee

Newegg Support

AUTHOR: Newegg Support - (USA)

Dear Patrick,

Thank you for taking the time to speak with me today; I apologize for not being able to be more helpful.

I assure you that we do not deny reversals knowing that some banks are only able to do one. Just as any company, when a charge back is done, we must gather all the information regarding the charge and provide it to our merchant for review. In your case, all of the billing information was accurate (as confirmed by your bank) and the package was delivered. With this said, we received payment and completed an order so we have no choice but to say that the charge was valid.

There are times when we are able to stop an order from being delivered if the charge is caught in time, in which case we are able to refund the method of payment upon receipt of the package. Unfortunately, when orders are completed, it is up to the cardholder and their bank to reverse the charge since it was unauthorized. It is very unfortunate that your bank is only able to do one chargeback in this case.

As I told you on the phone, please feel free to contact me if theres anything else we might be able to help you with.

Thank You,

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#7 Author of original report


AUTHOR: Patrick - (United States of America)

First I want to make it clear this report is not blaming Newegg for the fraudulent use of my card. The report is for them not resolving the issue. Second I want to clarify my first paragraph of the report. I was trying to state that my name was not used on the order I was not stating that my address was not used. The name on the billing information was wrong but my address was correct. The shipping location used the same wrong name and the shipping address did not match my address at all.

Joshua contacted me on the matter and pretty much told me that because the address used for the billing matched that there is nothing they can do despite the fact Neweggs website policy states:

"Why does Newegg need to verify my shipping address? For fraud prevention purposes, if your billing and shipping addresses are different, we must verify your shipping address. The reason we do this is to ensure that both you and us are protected from fraudulent activities. Someone may get your credit card information and your billing address (from your trash can for example) and ship an order to anywhere in the US. Only you, as the cardholder, can add an alternate address on file with the bank and/or Credit Card Company; this keeps our fraud rate down and gives you more peace of mind knowing you are purchasing/shopping with a company who has your best interests in mind. Please contact the bank that issued your credit card and have your shipping address listed as an alternate address in that bank's memo field. Please note this only takes 5 minutes and you will never have to do it again once this is completed. Please also make sure your credit card issuer bank's phone number is correctly listed in your account information. "

I have come to the conclusion based on what Joshua told me that, if you lose your wallet with your credit card AND drivers license, anyone who finds it can make authorized purchases since they will have your address and account number and the CVV2/CVC2 code on the back of your card and there is nothing you can do about it.

I admit I did not lose my wallet and I dont know how this information was stolen from me but I dont see how that makes any difference as the fact remains that the information was stolen and used without my consent.

My bank only makes one charge back attempt and if its denied they cannot do a second charge back. Joshua told me that all the bank has to do is a second charge back and it will be approved? They are clearly admitting that I should be refunded but they wont refund me.

Based solely on my personal opinion I feel Neweggs is very aware of this onetime charge back policy with the bank and hence denies the claim leaving you helpless. Newegg was in business long enough for me to assume I am not the first person to get screwed in this situation and I read similar reports on the internet including

I called my attorney but so far I was only able to leave a message with the secretary who gathered my info confirmed it will cost me more in legal fees then that original $202.49 charge. This is also something my opinion tells me Newegg is very aware of and quite convenient for them but if I follow through at least Ill sleep happy knowing the attorney fees were authorized by me.

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#8 UPDATE Employee

Newegg Support

AUTHOR: Newegg Support - (USA)

Dear Patrick,

First and foremost, on behalf on Newegg I apologize that someone has taken advantage of your information. I can only imagine the struggle one must go through when this happens.

Please note that in order for your bank to allow the charge, all of the credit card information had to be accurate. In addition, we always fully cooperate with the authorities when they contact us about such issues.

Furthermore, we have absolutely no reason to lie about anything, especially when it comes to the unauthorized use of someones information so I apologize that it may seem this way. Rest assured that the situation with the agent will be investigated and appropriate actions will be taken if need be.

So I can investigate your information, please contact me at or call me at 800-390-1119 ext 25092.

Thank You,

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