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  1. #1
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    Layered Tech - Very dissapointed

    I have a dedicated server in LT for 6 or 7 months already. I decided to stop paying it with Paypal and use a friend's credit card so I send an email asking for the procedure.

    They tell me the owner of the credit card has to send a fax, authorizing them to charge it, so I send them the signed fax. 3 days later, my ticket gets updated, saying I can't use another credit card, that I should change the ownership of the server, paying $100 or either continue using Paypal.

    Not only dissapointed for not telling me this before, but also for wasting my time (between the first ticket and the last one, 14 days passed). I have a copy of the ToS of the day when I signed with them and I haven't found any related to this case.

    Isn't this silly?
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  2. #2
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    They want you to pay $100 to change the ownership of the server is what you are saying?

  3. #3
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    Yup, $100 in case I want to change the ownership of the server.
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  4. #4
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    That's their policy, what's there to be disappointed about?

  5. #5
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    Quote Originally Posted by The Engine
    That's their policy, what's there to be disappointed about?
    Have your read my post? Have you read they made me send a fax, to later tell me I have to pay $100 or I won't be able to pay with another credit card?

    I don't know if you are used to send useless faxes or wait 14 days to get a simple answer, but I'm not.
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  6. #6
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    What they are asking is standard procedure for ensuring against fraud. Using a "friend's credit card" is a risky payment means to a merchant of any type. If you e-mailed me asking to do the same thing for an order on my gift shop's site, I would have told you that your friend had to place the order in his name ... which is the exact same thing that LT is telling you here. The server needs to be in his name in order to do this, and it's $100 to do it.

    So it took 14 days to find out. Maybe the first person who helped you wasn't sure how to handle it. Maybe they needed to sit down and iron out the policy internally between then and now. Is a two-week wait inconvenient? Yes. Is it annoying? Yes. But IMO complaining that you are "very disappointed" about a written policy that has been on LT's website all along, is a bit over-the-top.

    JMO!!!

    Bailey
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  7. #7
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    i agree, the issue isnt that they say you cant use another persons card for a server in your name, or that you need to pay $100 to transfer ownership of it to that person, but its that the first contact said you could by sending the fax, and was apparently incorrect in advising such, and thus causing yet more time wasting paperwork to be done lol.

    Ive no quarrely with their policies but sometimes the internal communications seem to be a little broken occasionally
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  8. #8
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    $100 for transfer is abit too expensive

  9. #9
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  10. #10
    Or pay them via paypal with your friends card?

  11. #11
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    Or get your terms switched back to Paypal. Login to Modernbill and change the billing address to your friend's address (it must be his credit card address).

    Now on each invoice is a link, "Pay Now." Not the Paypal button, this is a different hyperlink. Click that. You will be prompted to enter the credit card details (number, expiry and CVV). Enter them to pay the invoice.

    It should go through just fine. The key is that the billing address in LT's system must match the credit card billing address, because LT has AVS enabled. If you follow these steps, the transaction should process through just fine, and you won't have to pay any $100 to do it.

    Bailey
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  12. #12
    If you're worried about the $100 fee, it's simple.

    Have your friend open account and get same server. Xfer data over and cancel old (your server).

    This will be perfect unless you paid one time fees for ram or something you would lose.

    That $100 fee is crazy for one though. why charge to update billing info? 2nd why not say that at first?

  13. #13
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    its not updating billing info, its transfer of ownership, subtle but different kettle of fish.
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  14. #14
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    with all the credit card/paypal fraud and chargebacks I dont blame any company for having a tough policy, that $100 transfer fee is a lil harsh though

  15. #15
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    i'd guess its to discourage people from constantly changing ownership details all the time, or attempting to pull a quick one.
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  16. #16
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    Quote Originally Posted by jNive
    i'd guess its to discourage people from constantly changing ownership details all the time, or attempting to pull a quick one.
    Exactly. This is a brilliant move on their part, IMO. One, it's quick cash for 15 minutes' worth of work. Two, it's a wonderful deterrent to keep from being overrun by what amounts to being annoying busywork. Only the serious switches are the ones that go through.

    Bailey
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  17. #17
    good time to shop around and maybe find a better deal and then transfer all your data accross.

  18. #18
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    Quote Originally Posted by bithost(NET)
    Only the serious switches are the ones that go through.
    In which case, it's time to haggle

    I can't really blame LT for doing what they are doing - the server needs to be in the name of whoever is going to be paying for it. Is there a reason you can't keep paying with Paypal or even get a credit card yourself?
    Alasdair

  19. #19
    Join Date
    Aug 2006
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    The "my friend's Credit Card" is always a high-risk-for-chargeback scenario. I don't know about the $100 transfer fee, unless it is simply to discourage the extra paperwork (and risk) of moving servers around.

    Suggesting the OP configure a paypal account simply for this transaction might not be possible as his friend may have an account for other purchases tied to that card. An alternative solution might be for his friend to log into his billing portal and pay the invoice.
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  20. #20
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    Quote Originally Posted by Juanzo
    Have your read my post? Have you read they made me send a fax, to later tell me I have to pay $100 or I won't be able to pay with another credit card?

    I don't know if you are used to send useless faxes or wait 14 days to get a simple answer, but I'm not.
    Do you mean the $100 transfer fee you probably agreed to in the TOS you read before purchasing?

    If its nowhere in the TOS, then you can call them on it and maybe get it waived.
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  21. #21
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    Quote Originally Posted by Kdoubt
    Do you mean the $100 transfer fee you probably agreed to in the TOS you read before purchasing?
    Quote Originally Posted by Juanzo
    Have you read they made me send a fax, to later tell me I have to pay $100 or I won't be able to pay with another credit card?

    I don't know if you are used to send useless faxes or wait 14 days to get a simple answer, but I'm not.
    I perfectly understand the situation and I know how "friend's credit card" sounds like, but for a 7 month dedicated server customer, I think I deserve a little bit more credibility. And I can also understand some misunderstanding inside their department regarding their policy, but making a customer send a fax from abroad, to almost 14 days later tell him that he can't seems dissapointing to me, specially comming from LT and not some new or small company.
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  22. #22
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    Quote Originally Posted by Juanzo
    I perfectly understand the situation and I know how "friend's credit card" sounds like, but for a 7 month dedicated server customer, I think I deserve a little bit more credibility. .

    Juanzo, I'm sorry, but 7 months means very little in terms of credibility. Seven months is not that long. I have been there well over 2 years with multiple servers, have been with other providers even longer!, and I would still have to send the same paperwork and pay the same fee. They're not picking on you. It's just the way it works.

    Bailey
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  23. #23
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    I don't see why you're dissapointed, it's standard operating procedure. I don't know what gateway/merchant account LT uses, but I know my own won't allow anything to be billed to a credit-card that's in a name different from the account.

    I can see why this is done too, any Joe Blow can come along and say "Hey, I've got my friend's CC, I'm going to use it to pay my hosting fees", then, it turns out to be a stolen CC number, and guess what? The chargeback, and the liability rests on you, for charging the credit-card in the first place!

    Just my $0.02
    Christian
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  24. #24
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    also, when a client makes an initial purchase, the details are often run through an anti-fraud system checking things credit card details, AVS, ip and others. after the initial order, further checks will be manual and likely less extensive, or even at that resultant in extra labour/time to do such checks.

    So yah, LT obviously takes such a change in details seriously, and so they should, and so should you
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  25. #25
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    I completely agree with LT's stance on it. $100 is minimal for the "busywork" as mentioned before and the chargeback risk involved. Not to mention next month you might want to use "another friend's" card.. then another... very high fraud risk and just bad business to allow you to that with out a penalty or deturant. Good for them.

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