I have created, run, managed, and excuted a rebate processing center for over 1 1/2 years.

I have worked with Parago, Rebates HQ etc, as well as retailers, costco, OD, microcenter Etc.

Here is how the game works.

When rebates come in, they may or may not go to the state the rebates are processed in. Often times there is a misnomer that if you send in a rebate to Florida, it will be processed by a florida company. This is not the case. They are either processed by a 3rd party processor or they are sent overseas for processing. Rebate processing is done much better domestically than overseas, as overseas they will "loose" your rebate because they can't "read" your handwriting. They don't even know the 50 states, so sometimes they guesstimate.

RebatesHQ and Parago both work on this principle. They will "process" the rebates into a database, and then manufacturers go into the database and reject individual ones for crap reasons randomly. Yes, it does happen. Then, Parago and RebatesHQ make money by "buying out" your rebate. What does this mean? They will bill the manufacturer X amount of money for the entire program. The manufacturer is no longer liable for any rebates. This is the incentive that RebatesHQ and Parago now have to screw with your rebates. Though they only charge $1ish for processing the rebates, they charge an arm and a leg for customer service calls, which is more incentive for the to "loose" your rebate.

Here are three things that screw people over most:
1. Did not circle purchase price and Date. 30% error
2. Did not include a self addressed stamped envelope 40% error
3. Did not fill in all pertinent information. This includes, email, telephone, fax. 10-20%
IF you do not have these, and you do not fill it out, your rebate will be rejected. It is better to make one up than to leave it blank.

SO WHAT IS THE REAL REDEMPTION RATE?
Costco's redemption rate internally is close to 90% (I know, I was shocked)
Various other companies redemption rates have ranged from 10-20%(Manufacturer rebates) to 30-40% (Parago/RebatesHQ)

WHAT ARE THEY BANKING ON?
Usually a 50% redemption rate is what issuers are looking for.
Anything above 100$ is usually a higher redemption rate, and anything around 50$ is around 50% redemption. A 100$ product with a 50$ rebate will be sold @ 125, because if 50% of people submit their rebate, it would even out to be 100$, etc.

SO HOW CAN I GET MY REBATE?
1. Certified mail. NO bs about not recieving rebates. IF they lost it, it becomes their obligation whether or not it is correct, to redeem your rebate.
2. Copies. Always copy your work, but do not fake a copy to submit in. The rebate system is complicated now, if your copy does not match your original, you are in a world of hurt.
3. Read the terms and conditions. Its amazing how many people get the readings wrong. Every line in the terms and conditions is there for a reason. Trust me, I have designed some of the industry standard rebates (the tougher ones) and I could guarantee 10-20% redemption only.
4. BBB - This one is iffy, as BBB will only send a letter to the manufacturer or rebate company, but they are not inclined to do much. They are much like a wolf with no teeth.
5. Attorney General - Got those copies ready? This is the head honcho that will get your rebate to you. FAST. A few stacked up letters mean a lot of legal fees, and an "investigation". You can be assured from the attorney general, that you will get your rebate. However, if your rebate has many errors, you may still not get it.

Note how I did not mention "calling" the rebate company. Only managers have the right to override rebates, and we only do it for repeat callers, who tie up phone lines. We NEVER do it for rude or threatening callers. Just a thought to keep in mind. All rebate managers have the ability to override your rebate, regardless of whether or not they have recieved it. Parago and RebatesHQ have a better ability as they scan in your rebate, and can make judgement calls faster.

THE TRUTH ABOUT BONUS REBATES!

The Key point to bonus rebates is very simple.
Look at the mailing address.
The bonus address is very similar to the primary rebate address, but is different.

If you mail in a bonus rebate to the primary rebate address, it will be treated as a bonus rebate.

Scenario 1: You submit the primary and secondary rebate to the Primary address. Your rebate is treated as a bonus rebate, but since you have no primary rebate, both the primary and secondary rebates are void.

Scenario 2: You submit your primary rebate to the secondary rebate address. Both rebates are void.

Scenario 3: You make a small mistake on the primary rebate, your bonus and primary rebate are void.

The addresses are similar for a purpose. They are to confuse you to mail in the wrong information to the wrong address. They double the steps needed to complete the rebate to minimize risk to them. If you mess up the bonus rebate in anyway, they only have to pay the primary if your primary is correct etc... Be forewarned.

Oh, and Tiger Direct has a hoard of rebates they have not paid from last year, they haven't even touched the rebates. Don't support TigerDirect, they drive their manufacturers out of buisness and do not pay up. OnSale is managed by TigerDirect CEO's brother I believe, and they require manufacturers to use OnSale. Get the drift?

Feel free to post questions and constructive comments, I'll try to answer them the best I can.

Retalaznstyle said:Though they only charge $1ish for processing the rebates, they charge an arm and a leg for customer service calls, which is more incentive for the to "loose" your rebate.

Could you explain this? Who is charged for customer service calls? The manufacturer?

i've got to call BS on this post...

1. I have sent many rebates into Parago and never have been asked for a envelope or postage
2. Does it matter where the rebate gets processed? Unless it is being transposed into hieroglyphics, my guess is they can key the alphabet? Again, I have great success rate and fast turns from Parago.
3. I worked for a big retailer that Parago serviced, Parago, (and probably most other companies) only get paid for processing the rebate; i am not sure what buying out the rebate means... I know parago did not charge us for phone calls; so why would they drive phone calls?

4. also, it is the company running the rebate that tells the company like parago what to check for... the rebate companies don't make up the rules, so saying they do things to invalidate a rebate is false....

ALSO... it is common knowledge that certified mail is no better than regular mail... nothing gets signed for except in bulk....

I am wondering if maybe you work for a competitor of Parago; they don't do Costco, it is clear that CPG does. A lot of this doesn't hang together and we at Fat Wallet are smarter than that....

i also went and did some research.. you say you've done this for 1 1/2 years...

costco is with cpg i think
OD and Microcenter are with young america
parago works with a lot of companies...

all this in 1 1/2 years??? thats a lot of jobs.

rafiki said:i've got to call BS on this post...

1. I have sent many rebates into Parago and never have been asked for a envelope or postage
Most of the major rebate processing centers do not ask for it, but the smaller manufacturer issued rebates do ask for it as it reduces redemption by a lot.

2. Does it matter where the rebate gets processed? Unless it is being transposed into hieroglyphics, my guess is they can key the alphabet? Again, I have great success rate and fast turns from Parago.
Surprisingly yes. You'd be amazed at the illiteracy of some rebate processing centers. Some rebate processing centers actually outsource out of the country. (Yes, they mail it or fax it outside the country). This is where you will experience many mistakes as non native people will have a hard time keying in Minneapolis, they may spell it Minaepoliz or something, and you will have problems getting your rebate to you. Rebate companies can then say that they processed it, and sent it out, and it was not redeemed. By that time you are out of the time to appeal and out of luck.

3. I worked for a big retailer that Parago serviced, Parago, (and probably most other companies) only get paid for processing the rebate; i am not sure what buying out the rebate means... I know parago did not charge us for phone calls; so why would they drive phone calls?
This is false. Parago and RebatesHQ charge for customer inquiry phone calls. And they charge 3 to 4x the cost of the rebate for customer specific phone calls because there is a lot of cost when a customer is on the phone for 1/2 hr, not willing to get off the phone. Even at 8$/hr wage, you are looking at a cost of 4$ minimum to service that phone call. Again, I was a rebate specific manager, who executed projects, not a employee that just worked with them. Knowledge about key specifics of projects is usually dealt with on a need know basis

4. also, it is the company running the rebate that tells the company like parago what to check for... the rebate companies don't make up the rules, so saying they do things to invalidate a rebate is false....

Obviously you have not seen the thread about parago sending out post cards about lost articles. They say the reciept is lost when the rebate form is printed on the receipt (CC rebates). DO you think this is a problem with the Manufacturer, or Parago? You have to ask yourself who is going to benefit if you do not receive the rebate? Certainly not Parago if the manufacturer is paying out the rebate. Unless, parago has bought out the rebate. Then any rebate they do not pay is instant income.

Also, Parago provides databases to manufacturers and retailers online. They can go in and change people's submissions. I have seen it happen. Its not ethical, which is one reason I don't work there anymore.

Also, Parago and RebatesHQ advertise in their "initiation packet" certain redemption rates, that they expect to receive and reject. So they do have an interest to keeping redemption within that range. They do receive certain subcontracted bonuses when these quotas are met or exceeded. More along the lines of thanks for doing a good job, and not for being below the quota, but we all know what it really is.

ALSO... it is common knowledge that certified mail is no better than regular mail... nothing gets signed for except in bulk....
Incorrect. AS a person who has SIGNED personally for over 6k pieces of mail, I can tell you people PERSONALLY sign for these things. They have to.

I am wondering if maybe you work for a competitor of Parago; they don't do Costco, it is clear that CPG does. A lot of this doesn't hang together and we at Fat Wallet are smarter than that....
I have not endorsed, any rebate company. Why would you think I work for a competitor? And then reveal industry specific rebate catches? It serves to benefit no rebate company or rebates in general...

i also went and did some research.. you say you've done this for 1 1/2 years...

costco is with cpg i think Costco uses Young America for the majority of rebates, but allows some manufacturer incentive rebates
OD and Microcenter are with young america Incorrect, look at the LCD category for example
parago works with a lot of companies...

all this in 1 1/2 years??? thats a lot of jobs.
The rebate industry is quite young, a rising star manager with a black heart could wear many hats

I appreciate the insight of your experience, thought it makes me feel (in addition to nausea) that if these business practices exist as stated, with false 'rejection' numbers this high, that it's really the US Govent that's negligent allowing an entire fraudulent INDUSTRY to operate without regulation with impunity. Forget ethics - I'm not naieve enough to think that's enough - but ususally when things become this lopsided lawyers start taking an interest in class action law suits (similar to the CompUSA one) - so why hasn't this happened here? I've recently been stiffed by several OD rebates, and in watching the 'resolution process' I now honestly believe that OD management themselves are helpless in influencing their own rebate center!

That experience made me a believer in bringing about a change to this process, but I haven't yet seen ANYONE post something of real substance that would empower customers who are getting screwed to force the rebate INDUSTRY into accountablity. I remember in the past (10-15 years ago), mail order and telephone fraud were running rampant, but eventually got better regulated. My question is, are consumers really that helpless and are the rebate centers really powerful enough to openly practice legal FRAUD and continue to get away with it without penalty? I don't consider, "Just don't buy products with rebates", an acceptable solution.

allisolm said:RebatesHQ and Parago both work on this principle. They will "process" the rebates into a database, and then manufacturers go into the database and reject individual ones for crap reasons randomly. Yes, it does happen. Then, Parago and RebatesHQ make money by "buying out" your rebate.

Aren't Rebateshq and Parago the same thing? If you go to Parago.com it says "If you have submitted a rebate to Parago for processing, please visit rebatesHQ..." and at rebateshq.com it says "Powered by Parago, Inc.".

Yes, and No. Legally, they are two seperate entities, and the bankruptcy of one will not affect the other. Parago does not Process rebates, a branch of it does.

Retalaznstyle said:allisolm said:RebatesHQ and Parago both work on this principle. They will "process" the rebates into a database, and then manufacturers go into the database and reject individual ones for crap reasons randomly. Yes, it does happen. Then, Parago and RebatesHQ make money by "buying out" your rebate.

Aren't Rebateshq and Parago the same thing? If you go to Parago.com it says "If you have submitted a rebate to Parago for processing, please visit rebatesHQ..." and at rebateshq.com it says "Powered by Parago, Inc.".

Yes, and No. Legally, they are two seperate entities, and the bankruptcy of one will not affect the other. Parago does not Process rebates, a branch of it does.

aargh... quit spewing venom that has no merit... rebateshq.com is ONLY a website for Parago.com.. not a Company. How can a website be a separate entity??? it is only a URL and HTML... here is a very simple thing for you to do... look at the very public privacy statement from rebateshq.com; you say you use them for work but you never looked at any legal stuff? you should have known this...

"Parago, Inc. owns this site. Within this site and these Terms, when we say "Parago" "we," "us," or "our," we mean Parago, Inc. "

Didn't the OP mean OnRebate and not OnSale?

I also think the sase envelope situation relates to less than 1% of all rebates.
Its a non-issue to me.

As far as sending in different materials for re-submission, many times when I call the rebate company (Parago) they do not have access to any of the original documents.

Most all my rebates are validated with a phone call, especially I sent in the correct stuff in the first place.

Steve

The only rebate I can ever remember that required a self-addressed stamped envelope was for Linens and Things for a frypan. It was processed in California, presumaably by the importer/manufacturer. I've never had a rebate from an actual rebate processor that required a self addressed stamped envelope.

And I'm not sure what the OP means that Parago won't validate a rebate over the phone without talking to a manager - I've had a number of rebates that were validated over the phone because I was "such a valued customer" as well as that were validated via email.

henny said:After doing 100's of these rebates, I've never been stiffed out of a rebate. I elevate the issue until I get paid - and I do get paid!!Can you list each level of elevation/escalation to try, and thanks.