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Old 09-07-2016, 02:45 PM
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jscott jscott is offline
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Default Groobybucks: Please Read - Major Issue with Krissy4u/KhloeHart

Grooby, Krissy4u & KhloeHart problems. Rec'd this email.....

Quote:
An issue on NATS with two of our sites was pointed out last week. Krissy4u.com and
KhloeHart.com had been in test mode since they were added to our NATS program. An
employee who is no longer with us, had forgotten to take them out of test mode.
The only way a program can tell if a website is in test mode is the addition of a T
at the end of the subscription number. This affected only our own merchant account
sales, sales through other 3rd parties were not affected.

A normal subscription number: 14654134578Q9DVXY29FHS7T6X3AYAHY

A test subscription number: 14654134578Q9DVXY29FHS7T6X3AYAHY:T

What is test mode?
Test mode is just that, used for testing a sites billing is working properly.
Transactions are put through by the company and then when the site is opened to
customers, it's taken out of test mode.

So what does this mean?
What it means is that every transaction that went through those two websites, were
never charged. Customers completed the forms as usual, and to all appearances on
their end, were charged (if they'd checked their bank statements they would have
found that there was never a charge there) and issued a username and password.
This was reported into NATS as a sale and when we done both our payouts to Krissy
for her partner percentage (which is 80%) and affiliates, we paid out.

Customers appeared to be re-billed in NATS and we continued to pay out - NO MONEY
WAS EVER TAKEN FROM A CUSTOMER.

Because this was on two of our much smaller sites, it wasn't spotted, and the
rebills looked good on Krissy's site we thought because of her loyal fan membership
(none of whom informed Krissy that they'd never been charged). Because customers
didn't see the charge, or any rebill charge, they just didn't cancel, giving a false
impression of how successful the website was where other sites, cancels (and
refunds/chargebacks) happen a lot faster.

NATS spotted the error last week and informed us and they've been working with us on
fixing what we can, charging people who have joined in the last three months or who
are still accessing the site by our download logs. Since we charged them last
week, a handful of them have charged back of their own accord.

Grooby has paid out to our partner on this website her 80% split of the net revenue.
If we demanded that back from Krissy, it would kill her website completely and no
further production would take place. We've lost in bad sales, paying partners,
etc. over $100,000 over a number of years with this screw up, and we're not a
company who can take those losses. The $100,000 is mainly made up of money we've
paid out - which is unrecoverable. Krissy's rebills have dropped 85% so her
monthly income from the site is decimated, and she's working with us to build the
site back up.

As we believe that the majority of the sales, would never have re-billed for so long
- yet we'd paid out money from Krissy4u.com and KhloeHart.com to partners for those
sales, we made the decision to refund all those sales, in order to keep those sites
(or specifically Krissy's site) open as well as to mitigate part of our losses
(which are still over $100,000).

We will honor the first 'sale' from each member, on the each site and look at each
partners account individually. If partners can contact us at admin@grooby.com with
their username, so we can credit you for the initial sale. Re-bills will not be
credited and you will see those amounts shown as refunds within Groobybucks.

Who is to blame?

Our employee who is no longer with us, for accidentally neglecting to turn the site
off Test Mode?
NATS for not having an alert which could have reached us earlier - or showing the
test mode clearer (they are working on this now I believe)?
'Fans' for continuing to pilfer the site for free, knowingly not getting charged?

The blame, can only be pointed at Grooby. We're the company that runs these
websites and are responsible for not checking or auditing. The penalty of losing
over $100,000 is a hard pill to swallow and that money could have gone to building
new sites, which we've been holding off because of lack of funds. I believe we're
doing the right thing by not trying to recover money from Krissy, which she's
invested over three years in her site.

I sincerely apologize to our partners, who will see refunds in their accounts. For
most of our partners, this will be the smallest of their Groobybucks sites and sales
that were affected, by refunding these sales, you are also responsible for helping
Krissy4u get back on it's feet and Krissy able to continue to produce her unique
porn. It's never a good day to discover, you've not made the money you thought
you had - but you are partners with us, and that means occasionally taking the bad,
with the mostly good and sometimes great.

I hope to have better news for you next week.

Please email me admin@grooby.com with any concerns.
Yours
Steven
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