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Late fee on a hosting account?
- Thread starter Fe-Hosting
- Start date
I send out the invoices a week in advance. Once the due date has passed, I have a one week grace period. After that time has elapsed (and the invoice becomes > 8 days overdue) a late fee is added. By that time, they've had 2 weeks to pay, 1 invoice created email, 3 reminder emails, and 3 overdue notices. They are deserving of a late charge by then and I also begin looking into suspensions. If they are a first time offender, I will usually waive the late charge or give them some wiggle room. If they're habitually late, I look into removing the grace period and/or immediate suspension and late fee calculation.
UmbeeHosting
New Member
There are hosting companies that give some leeway on late payments like they just dont suspend the account automatically but give you some five days before suspending the account.
Webcs-Peter
Member
Additiopnal fees disattract the customers. We ahd a bad experince in the past. Now we try to reduce all the extra payments
What do you mean by that? "Additional fees distract the customers?" If they're late, they're late. It's no different than anything else: utility bills, credit cards, mortgage payments, etc. If they don't pay when they're supposed to, you have to discipline them somehow. Otherwise, they won't take you seriously and will just walk all over you, or not pay at all.
As a client I would certainly expect some sort of late penalty if I was late with a payment. Hosting services need to pay their bills as well, so why should the client be able to simply slide? They know when they are supposed to pay, simple as that. As Deep stated, it isnt any different then any other bill they have. Those have a "pay by" date and if not then you are apt to accrue late fees.
As long as its clear that late fees will be issued far beforehand, or when a person agrees to the service, then I see nothing wrong with it.
As long as its clear that late fees will be issued far beforehand, or when a person agrees to the service, then I see nothing wrong with it.
Don't you think 24 hours is too short?
The Crasher
New Member
well i do it differend and so far it works perfect
i apply late fee's to all my systems ( dedicated , vps and hosting and radio shoutcasting and so on)
20% late fee get added after 2 Days
account get suspended after 3 days
account get destroyed after 15 days
backup is avaible for 60 days after account is destroyed so they can restore everything back
the min fee i charge is 1€ , the reason why i do that is because it is not my job to keep your files when you do not have a service with us anymore ( that happeds if you are overdue )
we do provide a extra service to keep your files , and that is why it get charged
the space we need to waste to keep your account alive can be used for other clients , so it is normal for us that we charge you for your space that you used when we could use it for a paid user
we allow clients to create new services if they do not like to pay for there "backup" , but that is a choise the client need to make ( do i like to get my files back ? or just a fresh hosting account ?)
so it depends how you look at it , but quality cost money and to maintain quality do we need to provide some rules to prevent abusing
hosting providers who charge to get a service back re activated are more stable hosting providers then providers who just keep your account for 30 days
they get less abused and clients are more likely to pay on time or warn you why they can not pay instead that they say ... i got 30 days left
so for me this system is working perfect , my clients are happy and they understand it , so i see no reason why i should do it differend
so to make a long story short
keep in mind what you like to provide , do you like to waste space for free ? do you got other ways to "force" users to pay ? can your quality handle overdue charges ??
depending on differend value's you can choose to charge extra or not
Greetings From PowerChaos
i apply late fee's to all my systems ( dedicated , vps and hosting and radio shoutcasting and so on)
20% late fee get added after 2 Days
account get suspended after 3 days
account get destroyed after 15 days
backup is avaible for 60 days after account is destroyed so they can restore everything back
the min fee i charge is 1€ , the reason why i do that is because it is not my job to keep your files when you do not have a service with us anymore ( that happeds if you are overdue )
we do provide a extra service to keep your files , and that is why it get charged
the space we need to waste to keep your account alive can be used for other clients , so it is normal for us that we charge you for your space that you used when we could use it for a paid user
we allow clients to create new services if they do not like to pay for there "backup" , but that is a choise the client need to make ( do i like to get my files back ? or just a fresh hosting account ?)
so it depends how you look at it , but quality cost money and to maintain quality do we need to provide some rules to prevent abusing
hosting providers who charge to get a service back re activated are more stable hosting providers then providers who just keep your account for 30 days
they get less abused and clients are more likely to pay on time or warn you why they can not pay instead that they say ... i got 30 days left
so for me this system is working perfect , my clients are happy and they understand it , so i see no reason why i should do it differend
so to make a long story short
keep in mind what you like to provide , do you like to waste space for free ? do you got other ways to "force" users to pay ? can your quality handle overdue charges ??
depending on differend value's you can choose to charge extra or not
Greetings From PowerChaos
JerrickYeoh
New Member
i think it not use to add more money for the late fee. Because they do not have the permission to do with your extra money without the permission from you .
Is better you notice them early or host for more years rather than one year.
Is better you notice them early or host for more years rather than one year.
Leveltenhosting
New Member
Thake it easy and contact web hosting company first and ask them about that. I'm sure in the most cases you will be able to geat a deal and those 4-5 days 
The Crasher
New Member
as a host we got the right to apply late fee
see it like a bank
if you borrow a loan from a bank you pay a fee (thats normal)
if you do not pay back in time they charge a extra late payment fee (dit they inform you about that ?)
so why would we keep other users there files and backups on our value storage and take the responsibility of it if they can not pay on time ??
because of the space we lose that we keep the files safe for the client do i feel that we got the right to charge a small fee for it
simple reason , the space that we keep for that client that dit not paid in time could be used by a other client ... no other reason is needed
so you basicly just charge a backup fee for keeping the files safe
on the other side , mostly just contact the host and they make a deal with you
if you are a good customer then they will wave away the fee , but if it is already the 4th time that you are overdue with out a reason ... no change anymore that they will weave that fee away
it all depends on the host and how mutch trouble you are providing as client , the trouble can varie from host to host
but the main thing stays the same , i feel that it is normal to charge a late fee if overdue with out warning
in my case i apply late fee's after the second overdue date (so you can get 1 day overdue ) and after 15 days your files are destroyed if not back activated (still got a backup for 2 months)
Greetings From PowerChaos
see it like a bank
if you borrow a loan from a bank you pay a fee (thats normal)
if you do not pay back in time they charge a extra late payment fee (dit they inform you about that ?)
so why would we keep other users there files and backups on our value storage and take the responsibility of it if they can not pay on time ??
because of the space we lose that we keep the files safe for the client do i feel that we got the right to charge a small fee for it
simple reason , the space that we keep for that client that dit not paid in time could be used by a other client ... no other reason is needed
so you basicly just charge a backup fee for keeping the files safe
on the other side , mostly just contact the host and they make a deal with you
if you are a good customer then they will wave away the fee , but if it is already the 4th time that you are overdue with out a reason ... no change anymore that they will weave that fee away
it all depends on the host and how mutch trouble you are providing as client , the trouble can varie from host to host
but the main thing stays the same , i feel that it is normal to charge a late fee if overdue with out warning
in my case i apply late fee's after the second overdue date (so you can get 1 day overdue ) and after 15 days your files are destroyed if not back activated (still got a backup for 2 months)
Greetings From PowerChaos
UpReseller
New Member
A Hosting Provider have a right to add late fee if customer don't purchase money, but I never recommend to do that. They can leave your hosting company without any words.
