DreamHost Accidentally Overbills Customers $7.5 Million

magic said:
They won't need the capacity with all the customers they are going to lose over this.
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I wonder how many will actually leave. If customers have been totally satisfied thus far, if Dreamhost makes it up to them they might actually stay.

One thing to learn about this is to NEVER use your debit card for purchasing. You might say, "Wait but isn't that what all the marketing is about, using debit cards to purchase items and have it directly come out of your checking account". In fact, that's the problem. Do you really want a merchant to have direct access to any funds in your bank accounts?

With a credit card, the most a rogue merchant(or thief) can do is max out your credit line, maybe even go over it but you can dispute the charges and not be out a thing and be little effected. However, if someone overcharges you on your debit card, you could start bouncing checks and be potentially wiped out.
 
ppc said:
With a credit card, the most a rogue merchant(or thief) can do is max out your credit line, maybe even go over it but you can dispute the charges and not be out a thing and be little effected. However, if someone overcharges you on your debit card, you could start bouncing checks and be potentially wiped out.
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Anybody who has a debit card tied to their main checking account is just plain stupid. People just don't understand the risks I guess.

I have a debit card I use, along with my credit cards, but I have a separate bank account setup strictly for the debit card. I never keep more than a few hundred bucks in there at a time, and transfer money in there as I need it. If somebody wipes out my debit card, they'll get a few hundred bucks AND I'll dispute the charges and get it back anyway. That way, my credit isn't damaged (even temporarily), I'm temporarily out a couple hundred bucks at most, and all is good. :) If you're going to use a debit card, you have to do it safely.
 
At least it was an honest mistake. JaguarPC charged me for a full month's service every week of the month on a cancelled account, then denied that the charges ever took place on top of denying that the account was cancelled. Visa didn't agree with them, thankfully.
 
Unbelievably, their system is still messed up. There are still people reporting in comments on their blog that they are getting repeatedly charged (again!) when DH tries to reset their billing status. This is really awful, the first problem should never have happened in the first place, but to continue to cause charges when trying to issue refunds is just amateurish. They had better start passing out swords to their billing system people so they can commit seppuku. What a disgrace!
 
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