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Inception Hosting - Poor Customer Service
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Inception Hosting - Poor Customer Service

chaoszero112chaoszero112 Member
edited November 2020 in Reviews

Edit: Too many people have seen this as a "poor me" sob story, which was not the intention.

Here are the simple take aways:

  • The service was great at first, but slowly degraded.
  • They use a Subscription-based model where you subscribe to sending them x amount of funds at a set interval.
  • Other provides use an Agreement based model where an invoice is generated and they collect the funds on the due date.
  • Subscription-based does not appear to be the standard with any of the other providers, Inception Hosting seems to be the only one on my PayPal list that does this practice, which can lead to a payment trap.
  • I recognize it as being my fault for sending the payment in error.
  • I was also stupid for mentioning anything law related.
  • Inception Hosting seems plainly aware of the pitfalls of using the Subscription-based model but have done nothing to address it (ie switch from Subscription to Agreement billing with PayPal)
  • Despite opening a PayPal claim or dispute, it can still be cancelled by the initiator. The parties can still come to an agreement outside of PayPal (in fact, it's encouraged).
  • There is no requirement to lock the disputed account, especially when it's the main means of communication between the parties. Freezing the disputed funds would have been acceptable.
  • They also could have said "we are locking the account until the PayPal claim is resolved" instead of simply locking it out with no word.
  • The response from Inception Hosting was not that of empathy or pro-consumer, but rather a "sucks to be you" robot reply. It was clear they've seen the scenario numerous times but don't see it as something that needs to be addressed to prevent it in the first place.

Not looking for anyone to agree or disagree with me, point blame at anyone, etc. There is an arguable issue with the billing system the provider uses and I would recommend against knowingly getting involved with it when other providers don't have this same practice.

====
I had inception hosting back in 2017 when I grabbed a decent Black Friday deal.

Despite being "SSD-cached", the drives were slow (US 2048 KVM). It wasn't unusual to dip down to as low as 4Mb/s, according to bench.sh. So after a year or 2, I cancelled the service. (Yes, I was pretty slow in doing so. I seem to have an issue leaving servers idling:))

What I failed to do was cancel my PayPal subscription. Typically, any services I use open a PayPal agreement and bill me when the time comes. I quickly learned, however, that Inception Hosting does it differently. Instead of opening an agreement, they direct you to open a subscription which you send them money. Essentially, you are pushing them money rather than them pulling it.

I checked all my other service providers (OVH, RackNerd, Virmach, Alibaba Cloud, SSDNodes, to name a few) and none of them do that.

It leaves it very easy for you to fall into a trap of continuing to give them money. Given the wording in their invoice and help documentation, they know this (to be fair, they do try to warn you, but if they are aware of the scenario where consumers can continue to give them money accidently, why don't they change the subscription/push format to an agreement/pull like everyone else?).

I end up noticing the charge and within 30 minutes ask them to reverse it. Surprisingly, they refused, and made it clear "You sent us the money, we didn't ask for it. It's ours now" (my paraphrasing). They cited a fee they get charged from PayPal for refunded transactions, which I would have gladly covered. Ultimately, the result was I was left with a credit of €48EUR. Was it my fault for failing to cancel the subscription? Certainly. But from a PR standpoint it's very anti-consumer.

I decided to see if PayPal would return the extra charge, as the original agreement for the subscription was for a server to be provided, not a credit. Figured the worst that could happen is they say no, right?

Well I open the dispute and upon doing so Inception Hosting locked me out of my account.

This is only after sending 2 messages to them. One asking for a refund, and one saying it's against consumer laws to charge without providing services (this was before I realized that the PayPal agreement was me pushing the money). No hostility, no profanities.

They sent me one image before locking my account:

I would love to know how I can use an account credit for services when you lock me out of the account.

So what started as a simple mistake of me sending extra funds turned into Inception Hosting locking away those funds.

«13

Comments

  • UnbelievableUnbelievable Member
    edited November 2020

    I don't know how this will be resolved for you. I learned the hard way as well with another provider. Now I check my paypal subscriptions etc after my services are provisioned and cancel agreements. I also check periodically to cancel agreements. Maybe dispute on Paypal and ask for either refund or functioning account for if no functioning account- services are not delivered as prescribed.

    Unfortunately, discussing law with lET providers always leads to bad outcome especially since it was you who pushed the money.

    Paypal is a bit quirky. However, providers need to accept the fact that when a customer cancels a service, the provider can also cancel a subscription- unfortunately they will claim WHMCS wont do it blah blah blah. It is just a case of firms designed to take money on the front end and not caring about the end of agreements.

    Stop the insanity - Use firebase, cloudflare workers, oracle cloud, proton vpn and stop spending money

  • edited November 2020

    Well, you deserved that..

    Thanked by 2HuntersPad sebkehl

    🌈 A simple uptime dashboard using UptimeRobot API https://upy.duo.ovh
    🌈 BuyVM, GreenCloudVPS, Gullo, Hetzner, HostHatch, InceptionHosting, LetBox, MaxKVM, MrVM, VirMach.

  • @chocolateshirt said: Well, you deserve that..

    I deserve to be locked out of a service I paid for?

    Thanked by 1WorkingDude
  • Actually I also had same experience with them. There VPS works good in starting and after 4-5 months they are very slow. Same paypal trap but I just ignored them and last year I have not ordered anything from him while earlier I use to have 2 - 3 VPS.

  • @chaoszero112 - Thank you for the feedback. However, this forum is not for Inception Hosting support. Maybe it's better to open a support ticket with that provider, or contact them directly, especially when it comes down to sensible information like payments.

    Fastmako (aff) - another cheap VPS.

  • @chaoszero112 said:

    @chocolateshirt said: Well, you deserve that..

    I deserve to be locked out of a service I paid for?

    You already answer that yourself on your first post.

    🌈 A simple uptime dashboard using UptimeRobot API https://upy.duo.ovh
    🌈 BuyVM, GreenCloudVPS, Gullo, Hetzner, HostHatch, InceptionHosting, LetBox, MaxKVM, MrVM, VirMach.

  • @default I guess the forum is to only bitch about romania?

    Stop the insanity - Use firebase, cloudflare workers, oracle cloud, proton vpn and stop spending money

  • @Unbelievable said: I don't know how this will be resolved for you. I learned the hard way as well with another provider. Now I check my paypal subscriptions etc after my services are provisioned and cancel agreements.

    Well there's another thing with this. I signed up for a different service with Paypal but only with the email I used (never logged in actually) and now I can't find the sub anywhere.

    hm. I've lost a machine.. literally lost. it responds to ping, it works completely, I just can't figure out where in my apartment it is.

  • chaoszero112chaoszero112 Member
    edited November 2020

    @davi said:
    Actually I also had same experience with them. There VPS works good in starting and after 4-5 months they are very slow.

    That's exatly what happened. It was a great box at first, then slowed down later on.

    @default said:
    @chaoszero112 - Thank you for the feedback. However, this forum is not for Inception Hosting support. Maybe it's better to open a support ticket with that provider, or contact them directly, especially when it comes down to sensible information like payments.

    Would love to. Except they locked my account because I opened a support ticket.. So..

    @chocolateshirt said:

    @chaoszero112 said:

    @chocolateshirt said: Well, you deserve that..

    I deserve to be locked out of a service I paid for?

    You already answer that yourself on your first post.

    I may have "deserved" to not get a refund. Besides it being a questionable payment trap, it was ultimately my fault for sending the funds. However, there is no justification to them placing the payment as a credit on the account and then locking the account. That's just thievery.

  • Yeah tbh paypall makes it a bitch to find active subscriptions. Tbh any buisness that uses them should really send an email to clients reminding them to cancel on paypall as well.

  • You opened paypal dispute that's why they locked your account.

  • @Unbelievable said:
    @default I guess the forum is to only bitch about romania?

    People can complain about anything. A huge downtime with police raid involved and 22k affected services is a much better popcorn drama, than a user complaining about some Paypal subscription which can be handled in a support ticket. Besides, it's Black Friday.

    Thanked by 1yoursunny

    Fastmako (aff) - another cheap VPS.

  • @samm said:
    You opened paypal dispute that's why they locked your account.

    That sounds like retaliation. A dispute with a payment should have nothing to do with access of paid-for account credits.

  • @Unbelievable said:
    I don't know how this will be resolved for you. I learned the hard way as well with another provider. Now I check my paypal subscriptions etc after my services are provisioned and cancel agreements. I also check periodically to cancel agreements. Maybe dispute on Paypal and ask for either refund or functioning account for if no functioning account- services are not delivered as prescribed.

    Unfortunately, discussing law with lET providers always leads to bad outcome especially since it was you who pushed the money.

    Paypal is a bit quirky. However, providers need to accept the fact that when a customer cancels a service, the provider can also cancel a subscription- unfortunately they will claim WHMCS wont do it blah blah blah. It is just a case of firms designed to take money on the front end and not caring about the end of agreements.

    Have you ever read Paypal subscription and how it work?

    It’s so simply that when you active the subscription, you agreed to send money to provider at desired time. Yes, they can not change that, only you and Paypal can.

    You wrote a very long reply, why don’t just spend few minutes to read Paypal subscription ToS when you submit Pay button?

    ✔️Ryzen 3900X / 1GB RAM with free ClientExec just 18USD per year! 👈 Affiliate link ⚡
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  • @chaoszero112 said:

    @default said:
    @chaoszero112 - Thank you for the feedback. However, this forum is not for Inception Hosting support. Maybe it's better to open a support ticket with that provider, or contact them directly, especially when it comes down to sensible information like payments.

    Would love to. Except they locked my account because I opened a support ticket.. So..

    Ok. Then we got ourselves the foundations for a good-old-fashioned popcorn drama.

    Fastmako (aff) - another cheap VPS.

  • @giang - provider can cancel subscription as well - none of them do though

    Thanked by 1giang

    Stop the insanity - Use firebase, cloudflare workers, oracle cloud, proton vpn and stop spending money

  • "You sent us the money, we didn't ask for it. It's ours now"

    If you dared to challenge this in a court, they would loose. Of course they have right to cover their expenses related to refund, but they can not simply keep money someone else sent them mistakenly...

  • defaultdefault Member
    edited November 2020

    @Unbelievable said:
    @giang - provider can cancel subscription as well - none of them do though

    Maybe they don't keep track of subscriptions. Maybe there are too many subscriptions. However, not investigating the case, and blocking the user because he opens a support ticket about it, this is the bad part.

    Thanked by 1giang

    Fastmako (aff) - another cheap VPS.

  • @default- yea its too hard for the provider to keep track of where their money comes from- thats just stupid

    Stop the insanity - Use firebase, cloudflare workers, oracle cloud, proton vpn and stop spending money

  • @Unbelievable said:
    @default- yea its too hard for the provider to keep track of where their money comes from- thats just stupid

    True...

    Fastmako (aff) - another cheap VPS.

  • @default said:

    @Unbelievable said:
    @giang - provider can cancel subscription as well - none of them do though

    ..., and blocking the user because he opens a support ticket about it, this is the bad part.

    Did you read the first post correctly?

    🌈 A simple uptime dashboard using UptimeRobot API https://upy.duo.ovh
    🌈 BuyVM, GreenCloudVPS, Gullo, Hetzner, HostHatch, InceptionHosting, LetBox, MaxKVM, MrVM, VirMach.

  • @Unbelievable said:
    @giang - provider can cancel subscription as well - none of them do though

    I believe that they will with a some fees, such as refund fee and time to investigate about the subscription and cancel it.

    ✔️Ryzen 3900X / 1GB RAM with free ClientExec just 18USD per year! 👈 Affiliate link ⚡
    ✔️SellSSL.com - Sectigo PositiveSSL from 15 USD per year!

  • AnthonySmithAnthonySmith Member
    edited November 2020

    Hi,

    just going to leave this: image

    And this: https://talk.lowendspirit.com/discussion/2049/remember-to-cancel-paypal-subscriptions/p1 here.

    Except they locked my account because I opened a support ticket.. So..

    You filed a PayPal reversal/claim (not a dispute) which is why your account was locked.

    Typical case of someone shitting on your doorstep and then waking you up at 3am to demand toilet paper.

    FR record added.

    Happy Black Friday folks, please remember to look after your own money, as you know, it's yours, this is in the hands of PayPal now, any power to remedy the situation was taken away from me.

    See you, guys next year, I am sure this thread will descend into drama, you are welcome to it :)

    I am no longer active here, find me at https://talk.lowendspirit.com

  • @Jarry said: but they can not simply keep money someone else sent them mistakenly...

    Money wasn't sent mistakenly. The OP set up a paypal subscription.
    Who said being an adult is easy :lol:

    @default said: blocking the user because he opens a support ticket

    OP was probably blocked for opening a PayPal dispute.

  • they dont accept orders from certain country. they have cloudflare blocked these region and recaptcha.

  • Open a dispute, they made you a favor by blocking your access in that sense.

  • The ideal resolution would be to refund the money after deducting processing fees. Since, inception hosting are good guys, hope, op will have an acceptable solution soon.

    My reliable providers : Ramnode : HostHatch : Serverica : CloudCone : InceptionHosting : AlphaVps : LittleCreekHosting : NexusBytes

  • @AnthonySmith said:
    Hi,

    just going to leave this: image

    And this: https://talk.lowendspirit.com/discussion/2049/remember-to-cancel-paypal-subscriptions/p1 here.

    Except they locked my account because I opened a support ticket.. So..

    You filed a PayPal reversal/claim (not a dispute) which is why your account was locked.

    So retaliation?

    Thanked by 1Shamli
  • @chaoszero112 said: A dispute with a payment should have nothing to do with access of paid-for account

    I am not sure if you know this but Anthony publicly said this many times that a paypal dispute means no communication with customer resulting account locked and he also supports those providers who practice similar scenario. But then again paypal subscription is customer's responsibility.

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