Fly Buys has revealed that it will refund anyone who bought the 512GB Apple iPhone 11 Pro Max off its website after the phone was rewarded to customers for a low price.
Fly Buys website crashed overnight after the latest iPhone 11 was being offered to customers for only 805 points - or at least 50 points and $140 in an error.
However, Fly Buys has since apologised to customers, admitting that it was an error and that customers will receive a refund.
"We are aware that a 512GB Apple iPhone 11 Pro Max was displayed on the Fly Buys website over the weekend with the incorrect number of points required for redemption, a Fly Buys Spokesperson told the Herald.
"This was an error and we apologise to our members for any inconvenience this caused.
"We will be refunding any points and/ or money that our affected members spent on this product and we will be contacting these members directly today.
"Our website, which was unavailable overnight on Sunday, is now up and running.
Thousands of Kiwis jumped on to the website to get the 512GB Apple iPhone 11 Pro Max, worth $2849, after the "crazy deal" was shared on social media including local Facebook groups and Reddit.
The page showed the product being sold for 805 points, or customers could choose to use the points they have and top it up with their own money.
In comparison, on the same page customers could get the 256GB iPhone 11 Pro Max for 17,955 points.
People accumulate Fly Buys points by shopping at the loyalty scheme's partners. For example, a $25 spend at New World earns 1 Fly Buys point.
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Many reported that they successfully bought the phone, even more than one, but are concerned that Fly Buys won't honour the deal.
After the news got out on social media and word of mouth, the website and app crashed overnight, giving users the message "We're sorry, too many people are accessing this website at the same time. We're working on this problem. Please try again later."
The website is now up and running and the page that was selling the cheap product has been removed.
"Sorry, the reward you are looking for doesn't seem to exist on the Reward Shop any more," the website reads.
One customer told the Herald she was emailed a receipt for an iPhone 11 and her account was debited but when she went into her Fly Buys account it said she had purchased a Marbotic Smart Kit, not the iPhone.
A Marbotic Smart Kit is a learning kit for children, who can use wooden interactive numbers and letters on a tablet screen with seven educational apps.
Another customer, Karl Close, who bought the iPhone for 800 points around 2pm yesterday, said he also received a receipt from Fly Buys.
When asked how he would feel if Fly Buys didn't honour the deal Close said it didn't worry him.
"I knew what was I was getting into to. They will probably try and back out of it," he said.
"It's too good to be true. I had nothing to lose, it's only Fly Buys points."