AT&T Rebate Complaint

Shortly after I got my iPhone, I flipped my wife's and an employee's phones over to AT&T. I got them both Motorola RAZR phones, each with $100 rebates ($200). After a few weeks, I got four (4) AT&T Rebate Debit cards, each worth $50. I thought, wow, cool, this will be easy to spend.

The first time I used a card, all went well. Then I realized that, in order to spend all of the money, I would have to track the amount spent for each card. So I put each card in an envelope and kept track of the balance on the front. I looked like a dweeb pulling them out, but I was determined to spend every penny.

The first time I tried to use two cards to cover a transaction was at the grocery store. I was successful at spending down to the penny the first card, but the second card, which had more than enough remaining balance, was rejected. I had to use a third card to cover the bill. Then I had two partially spent cards, which really bugged me.

The next time I tried to use a card was at a restaurant. The card had about $5 more available balance than the tab -- but it was rejected. I had to use my debit card because they could not let me use two cards to cover the bill. At a gas station, I tried to use a card, but it was rejected. Next I tried to use a card to pay for chinese take-out, and it was rejected. In five attempts, four rejections. By now I was totally put-out.

So I called up AT&T customer support. I got a very nice gentleman on the line. I promptly chewed him out, stopping to apologize and explain that, while I thought he was great as a person, I was completely pissed with AT&T. Nothing personal. BTW: I think this is a very important thing to do -- tell them you aren't pissed at them. It diffuses the situation, and helps them to want to help you.

He explained to me that many businesses, especially restaurants, have to authorize more than the total of the bill in order to accommodate tips, etc. I knew this, but this still didn't explain the first rejection at the grocery store. I asked him to give me a credit for the remaining balance and just be done with it. He told me he could not do that. I read the riot act again, and again I explained that it was AT&T, not he, that was the target of my wrath. Then he said a very smart thing.

He suggested that I just use the cards to pay my bill. Oooo, I was completely defanged. I thought "what an elegant solution, why didn't I think of that?" I thanked him and hung up.

When my next bill came, I called up the pay-by-phone line and explained what I wanted to do. After hearing me out, the customer service rep explained to me that there would be a $5 service charge FOR EACH CREDIT CARD TRANSACTION. That would be $20! What!? If I pay my bill with AT&T's own debit card, they charge me for every transaction?

I immediately asked her to close out my account. I told her that if they had such a ridiculous rebate system, and an equally punitive set of fees to use their own cards, I simply couldn't remain a customer. No way was I going to pay $5 per transaction. After all, it was their own card paying their own bill.

Thankfully, she decided it would be better to waive the $5 fees and just take the cards. So, one by one, I depleted the balances of my three remaining cards, and stuck the total remaining balance on my company credit card.

So, the next time you see a rebate offer, beware that you may be receiving a debit card, and not a check. Avoid trying to use the card at restaurants and gas stations, and ask other types of vendors up front if they will have to authorize for more than the exact value of the transaction.