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Saturday, June 18, 2011

W2Servers and Paypal

If you were a previous customer, you received an email about W2 Servers dropping Paypal as their payment processor and going over to a credit card processor.  On May 11th, 2011 when I purchased my "limited time" offer for a free quad-core upgrade and 1 gigabyte of RAM for $24/year when everything else was 512mb of RAM and an AMD Opteron CPU - once the payment processed, I received this email about 2 hours later.

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Received: by 10.220.201.197 with SMTP id fb5cs55192vcb;
Wed, 11 May 2011 11:48:15 -0700 (PDT)
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Wed, 11 May 2011 11:48:15 -0700 (PDT)
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Authentication-Results: mx.google.com; spf=pass (google.com: best guess record for domain of nobody@virtual1.hnoc.w2servers.net designates 173.212.214.235 as permitted sender) smtp.mail=nobody@virtual1.hnoc.w2servers.net
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for (removed); Wed, 11 May 2011 14:47:01 -0400
To: (removed)
Subject: Billing Changes: Paypal
Date: Wed, 11 May 2011 14:47:01 -0400
From: =?utf-8?Q?W2_Interactive=2C_Inc_=E2=84=A2?=
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Content-Type: text/plain; charset = "utf-8"
Content-Transfer-Encoding: 8bit

Dear Customer,

As a result of excessive fraud and abuse originating from paypal payments. We have decided to discontinue general use of paypal.

Paypal is still available as a payment option for well established customers. It will not be available in the sign-up forms, so if you wish to use paypal you must open a ticket to billing to request approval.

Thank you in advance for your cooperation.



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Seriously? Fraud and abuse payments? 


W2Servers will keep around a client who had 12 piracy violations, 74 spamming violations and 7 upstream null routings. The only "fraud" I can think of is you are playing the game of blaming someone to keep this "scam" going.


With Paypal's dispute policy, you can only dispute transactions of up to 45 days if you paid via your Paypal account as the primary source of funding. Maybe this was the idea to cut and run? However, with credit card processors, fees and other charges come up if you dispute a payment. It wouldn't be very wise to fight a $24 payment for a year's worth of VPS service when the fees charged by the bank could be $15 - 25, depending on your financial institution.


I talked to Paypal and my March VPS was paid for by Paypal funding but my May VPS was a debit card transaction processed by Paypal, which would give me an advantage to dispute the payment with my bank and I plan on doing it at 9am on Monday morning. I hope to get more information from the bank about Lyin' Lyron Foster and W2Servers / W2Interactive from the bank to put it online for others to follow through.


This is why Lyron switched to a traditional credit card processor because of the "fees" his company likes to tack on like a VPS transfer from one data center to another for $10 and "improperly" filed support tickets for another $10 per incident.


With Paypal, you would have to submit a request for $10 for the improper ticket filing and hope the client pays it. The client could simply refuse, ignore the request and would W2 Servers terminate the customer's VPS knowing full well that what would result is a Paypal / credit card dispute which would ultimately end up with Lyron Foster and his companies losing? 


With the credit card processor, you have to trust W2 Servers / W2 Interactive with having your financial information. I wouldn't even trust them beyond that, because all they would do is tack on ridiculous fees just because you filed a ticket in the wrong area where there are 10 available ticket departments so it's easy to get confused. Also, since they would have your credit card information on file, they could charge you whenever they felt like it. 


I will keep all of you updated with what happens on Monday with my bank and the challenge of disputing a payment. Hopefully, through my experience, I can show you how to dispute a payment with them while you still can and hopefully get your money back. I do not think all hope is lost, just temporarily. 


Need further proof about W2 Servers and Paypal?



Business Name:
W2 INTERACTIVE INC (The recipient of this payment is Verified)
Email: accounting@web2reality.com
Payment Sent to: billing@w2interactive.net

Why would you have two separate email accounts for this? 

Domain Name: WEB2REALITY.COM
   Registrar: GODADDY.COM, INC.
   Whois Server: whois.godaddy.com
   Referral URL: http://registrar.godaddy.com
   Name Server: NS1.W2INTERACTIVE.NET
   Name Server: NS2.W2INTERACTIVE.NET
   Status: clientDeleteProhibited
   Status: clientRenewProhibited
   Status: clientTransferProhibited
   Status: clientUpdateProhibited
   Updated Date: 09-jan-2011
   Creation Date: 25-dec-2008
   Expiration Date: 25-dec-2011

Domain is about to expire.. how convenient! 

Like all W2 Servers / W2 Interactive domains, it's registered to "Kelis Johnson" of W2 Interactive, Inc. with the address of 3767 Forest Lane, Suite 124 #1297. Dallas, Texas. 75244. I put the address into Google Maps and it appears to be a strip mall with a Starbucks nearby and a FedEx office. I'm not saying that's indicative of being a scam, it's just where the domains point to and you need to cover all the grounds when doing an investigation like this. 



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