[garethsprice]

HostGator is also one of the largest consumer-facing web hosts for small sites. They don't require these checks from everyone, just orders flagged as high risk.

I'd imagine they're flagging these orders using a third party risk verification/fraud detection service. Sofa Moolah is registered in Australia, and International orders are a high indication of risk - especially as Australia's region of the world includes Malaysia (huge hotbed of credit card fraud).

Given the very large amount of fraud in web hosting (people ordering using fraudulent credit cards, that can result in $20-50 chargeback fees for that $8 account), it's not unreasonable to ask for verification. Annoying, but not unreasonable.

[wccrawford]

They specifically told him he was randomly selected. Yes, he picked the 'high risk' web hosting choice, but that's no reason to give him lousy service.

They could have come to the same end as far as service checks go without pissing him off and losing him as a customer. Not to mention everyone he tells.

If all they are worried about is the chargeback, they should have enabled his account immediately, then started running the checks. If he fails the checks, THEN you disable the account. What would it cost them? Like $.20? Instead, this way cost them at least 1 serious customer.