[SOLVED] Problem with Bitinstant overcharging

[Luther]

When using Bitinstant yesterday, I noticed that they now covertly add $1 to the amount that is quoted in the link to TrustCash. In their FAQ, they claim to not add any fees above the amount you order, and the website makes it appear (if you don't look at the address bar) that this $1 is being added by TrustCash, which is false. This problem occurs regardless of the amount that you order. I have a screenshot which shows that this overcharge originates with Bitinstant and not TrustCash:
https://plus.google.com/115910879713858998075/posts

I've been using Bitinstant since January and have not had this problem before. (The last time I used it was around March 11.) I don't believe it will be difficult for Bitinstant to fix this problem now that it is made public. I'm announcing this issue publicly because I believe the faster everyone knows about these problems, the faster we can build trust in the BTC economy.

There is an easy work around for this problem. (I've done this, but I haven't actually made my deposit yet, so use at your own risk.):
Make the order as normal and click the link to TrustCash. On entering the TrustCash website, you should see the amount you ordered plus $1. Find that amout in the address bar, change it to the amount you intended, and hit Enter. You can then continue your order with the correct amount.

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[Yankee (BitInstant)]

Thanks for reporting this, and you can easily use that workaround if you want.

We will attempt to fix the issue, and edit our FAQ as well as our Terms of Service.

As we add on new methods for deposits and withdrawals, we experiment with new ways of reducing our fees by negotiating better rates as our volume increases.

Important to Note: The amount on the homepage in the "You receive" box is exactly the amount you will receive. Everything is upfront on the page.

Also, when you make a quote on the next page it says:

"* Guarantees apply from the time you physically deposit cash. Please note that the payment provider may add an additional fee of between 1 to 2 USD."

That could be a little confusing, so what we will do is update it to say:

* Guarantees apply from the time you physically deposit cash. Please note that the payment provider will add an additional fee of $2 USD.


Mr. Luther, we would appreciate if you'd get in contact with us about something that might be a site issue or oversight before posting publicly.

You're a valued customer of ours, and we appreciate you finding the issue.

Your more then welcome to contact me personally about this issue, my contact info is below

Thank You

Charlie,

1.716.712.4846 | Charlie@bitinstant.com

[Luther]

Mr. Luther, we would appreciate if you'd get in contact with us about something that might be a site issue or oversight before posting publicly.

In retrospect, I should have PMed you about this post instead of posting in your thread. It was careless of me to post the link that way, and I apologize.

I've used Bitinstant in the past with good results. My current transaction where I used the workaround has already gone through without a hitch. And I'm sure I'll continue to use your service in the future.

That being said, if this kind of problem, which effects all users of a common feature, had happened with the Bitcoin client, we would see a full public disclosure, like the one here: http://gavintech.blogspot.com/2012/03/full-disclosure-bitcoin-qt-on-windows.html This is the primary reason I have such high confidence in Bitcoins. IMO, we need to demand the same accountability from the people we do business with. Given the evidence I had, I was reasonably certain that this was effecting everyone who was using Bitinstant and Trustcash to deposit to MtGox, therefore the issue had to be hashed out publicly.

Some people will disagree with me. They think that the more problems are known about a system, the less reliable the system is. (Wikipedia comes to mind.) I believe that thinking is backward. When these problems are laid out in the open, it motivates those who are capable of fixing the problem to action, and the rest of us can sleep easier.

To clarify another point, we recently came to a new arrangement with our partners at TrustCash where the % fees will be lowering in exchange for a flat extra $1 fee per order. The simplest way to do this was to add the extra $1 to the URL we send user browsers to.

Since this has obviously caused concern i'll personally be investigating an alternate way to do this in addition to the FAQ and quote page changes.

Thank you. This is the kind of explanation I was hoping for.

Again, thank you guys for your service. It is, so far, superior to any other service I've used to transfer money to the exchanges.

[JusticeForYou]

Some people will disagree with me. They think that the more problems are known about a system, the less reliable the system is. (Wikipedia comes to mind.) I believe that thinking is backward. When these problems are laid out in the open, it motivates those who are capable of fixing the problem to action, and the rest of us can sleep easier.

Yes and No.

   I agree that disclosing the information motivates the service to fix and/or change. However, one doesn't want to start a panic/attack on the service out of the blue. I would suggest that one should initially inform the service of the flaw and disclose the timeframe before the information will be publicly disclosed.

  It's not that a company makes mistakes that determines validity; it's the willingness and effort to fix them.

[Yankee (BitInstant)]

Thanks you for being patient with us!

Feel free to contact me in the future!

Charlie

[Gareth Nelson]

This issue has now been entirely resolved as can be seen on our current site. In future, please do raise any issues like this in private first so that they can be resolved quickly, we are well-known for responding rapidly to support emails and can be reached using the contact form on the website or by a direct email to support@bitinstant.com.

[Stephen Gornick]

That could be a little confusing, so what we will do is update it to say:

* Guarantees apply from the time you physically deposit cash. Please note that the payment provider will add an additional fee of $2 USD.

Still shows: "Please note that the payment provider will add an additional fee of 1 USD."

And the fee was, as I was already aware, more than that amount.

So the fee is like a lottery?  i.e., if it is too high should cheapskates like me create a new one attempt and hope it shaves a quarter dollar or so off?