5/5

posted Mar-30-2009
This was a Preorder for a Heatsink. The Heatsinks are due to arrive tomorrow and I have no doubt that Frozen CPU will process and ship the item quickly. This company has been in business for over a decade and is considered reputable and great to work with, so please do not take my criticism as reason not to order from them!
My criticism here is from the fact that FrozenCPU charged my Credit Card as soon as it was ordered, before the item was even in stock. They really should not be doing this even though it is not illegal. If you then want to cancel your order on a preorder, you get charged 5% for doing this, as stated on their site. Well, if they did not charge my card, they would not have to pay the Credit Card company for the charge, and I could cancel my order for FREE.
This is not a very Customer Friendly Practice. They can try to justify why they do this, but I can tell you I have been buying items online for over a decade, and other reputable companies (a la NewEgg, Amazon, etc) DO NOT DO THIS. They need to CHANGE this practice so people can cancel a preorder without penalty.
Here is what the PCGuide and Others say about this Practice:
"Credit Card Pre-Charge"
"Of all the different policies that differentiate vendors, the one that is probably the most controversial relates to when a vendor charges your credit card on a mail order or online purchase--especially if the item is backordered or cannot ship immediately for some other reason. Some companies will charge your credit card the instant you place your order, even if the item you are ordering is not in stock, and even if they have no idea when or even if it will ship. Others will take your order but charge your card only when the item actually is sent.
I personally do not like it when companies pre-charge credit cards for items they do not have in stock, and I advise that you avoid companies that do this. The companies that have this policy rationalize it in all sorts of ways--they say it is the "only way their system works" or that it "streamlines operations". Well I'm sorry, but having a system that is fair to the customer is the vendor's responsibility. Charging a credit card for an item that is not in stock is just (ab)using the customer's money. It's not fun to pay a credit card bill for an item that hasn't even left the vendor's warehouse yet.
Companies should be allowed a bit of flexibility in the amount of time between when a charge is made and when the item goes out the door, to allow for variances in order processing time and shipping. Especially with large companies, it's not always possible to control the timing down to the hour; the accounting and shipping departments may be in different time zones or even on different continents. If your item ships within 24 hours of the charge being made to the card, that's good service. Even 48 hours is somewhat reasonable.
Beyond a day or two, the item probably isn't in stock, and the company is "floating" your money as the saying goes. Unfortunately, in many jurisdictions it is not illegal to precharge a credit card for an item that is backordered, though in some places it is. You have to check your local statutes. Where it is legal, many credit card merchant service companies specifically disallow this practice as a condition of the contract the vendor signs to accept credit cards. Of course the typical vendor doesn't publish its credit card merchant agreement, even if they aren't violating it, so it's not like you can easily check this. ;^)
Even if the company is in an area where pre-charging is legal and their merchant account does not preclude the practice, the legality of this behavior is predicated upon the customer being informed of the policy. The only remotely fair way for this policy to be implemented is if at the time you place your order, the salesperson tells you that some items are backordered and that your card will be charged for the item(s) immediately, unless you want to remove them from the order. As much as I don't like pre-charging, I have to admit that this is at least reasonable--the customer is in control of the situation and can decide if this is acceptable or not."
Again, this is a small speciality cooling outfit that sometimes sells unique items so their prices are sometimes a bit high to begin with. However, that is NO Excuse for this practice.
I am not saying not to buy from FrozenCPU, but you better be absolutely sure you need what yu order. They are rated EXEPTIONALLY well in 3 Categories here on reseller, but are only rated in the Mediocre Range for the 2 Categories I look at, Price and Return Policy. I really do not care if they take a couple of more days to ship my order.
I will also say that you can reach them on the phone, which is one of the most important things I look for. Many vendors will list a Phone Number, but you can never get hold of them when you try to call.
Come on Frozen CPU, you can do better! You have EXCEPTIONAL Ratings in 3 of the 5 Reseller Categories, but the 2 mentioned above stand out to prospective Buyers. Fix those and you could be a mini-NewEgg! Just Do IT!!!
Jim
The problems come in when companies pull this without informing the customer, which occurs frequently. I consider this a blatant rip-off; why should the vendor get funds for an item they have not shipped? If the policy is legitimate, why are they not informing their customers? And a footnote in 4-point font buried on a customer support page somewhere is not what I consider "informing".
If you find your credit card charged in advance without your consent, contact the company and ask to speak to a manager. Cancel the order, and insist on the charges being reversed immediately. If the company refuses to cooperate, dispute the charge with your credit card company promptly.
Followup: FrozenCPU called and asked if I wanted to cancel the order without the 5 % charge. I said NO. They also stated they will look into their practice of charging cards on preorders.
As I said, they need to stop this.

This review was modified by
caljamcal on April 04 2009 11:10:49 AM