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Hosting Discussion > Operating a Web Hosting Business > Billing and Accounting > When to Terminate account for non-payment
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  Post #31 (permalink)   01-24-2016, 04:04 AM
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Originally Posted by wizzo85 View Post
although to suspend an account for 1 day late invoice payment is kind of harsh.
Why?

They sign up with you and agree to your TOS to pay you by a given date, most hosts will generate and send invoices at least 7 days before they are due, so that is 7 days for them to pay or make contact with you to say they may be late paying, so if no payment is made by or on the due date then why should you not suspend them the following day to stop them using your resources without payment.
You are in a business to make money not to give resources away for free. It all depends on how you run your business, we suspend 2 days after due date, so allowing at least 1 overdue invoice to be sent.

We currently have 1 clients who is late every month, in fact he only pays after the late fee is added for some reason, but he does not like subscriptions and as this is the only issue i have with this client who has been with me 3 years and only started doing this about 6 months ago i have no problem with this as i know he pays
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  Post #32 (permalink)   02-02-2016, 01:53 AM
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I will suggest to suspend a account after 7 days of non payment and terminate it after 30 to 45 days after non payment. Always keep a backup of client account before account termination. As many clients comes back after 30 days and ask to reactivate the account with all data.
 
 
 


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  Post #33 (permalink)   02-02-2016, 03:21 AM
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Originally Posted by hmb-patrick View Post
Always keep a backup of client account before account termination. As many clients comes back after 30 days and ask to reactivate the account with all data.
WHY. It is the clients responsibility to keep their own backups. we backup all accounts on a daily basis, but this is for our own use. each client has a cpremote link inn their cPanel incase they need to restore any files etc. But once an account is terminated then the back is automatically removed from the backup server 7 days after account termination.

but even if after termination a non paying clients asks for a copy of the backup they will not get a copy until they pay their outstanding bill.

you will find a majority of hosts will have in their TOS that if you breach the TOS then you will not get any backups and non payment is a breach of the TOS.
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  Post #34 (permalink)   02-06-2016, 08:38 AM
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You must wait 3-5 days after the due date. Sometime clients forgot to pay for vps.
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  Post #35 (permalink)   02-10-2016, 12:34 AM
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Originally Posted by jkateega View Post
30 days is fair enough BUT my concern is suspending one day after over due. I think you should allow like 5 days for clients to pay before you suspend
Yes, I agree with you. Few days to wait and communicate is good.
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  Post #36 (permalink)   02-15-2016, 11:56 AM
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It is best to place a late fee to an invoice after a couple of days, this usually gets the clients attention as you will get a message from them like ' why is my latest invoice total different to my last one' and then you explain to them that a late fee was added as the invoice is late paid, some will pay it and others will argue the toss as its unfair to add a late fee
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  Post #37 (permalink)   02-15-2016, 04:02 PM
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Originally Posted by easyhostmedia View Post
It is best to place a late fee to an invoice after a couple of days, this usually gets the clients attention as you will get a message from them like ' why is my latest invoice total different to my last one' and then you explain to them that a late fee was added as the invoice is late paid, some will pay it and others will argue the toss as its unfair to add a late fee
I agree with this, also ensure that you send multiple invoice reminders with varying levels of importance leading up to the termination date.

I have my termination date 30 days after the invoice is due.
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  Post #38 (permalink)   02-16-2016, 03:49 AM
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Originally Posted by zomex View Post

I have my termination date 30 days after the invoice is due.
This is not bad BUT how long is your suspension after due date? When you place both very far from the due date it tends to encourage late payment quite often
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  Post #39 (permalink)   02-16-2016, 11:29 PM
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Few days wait after invoice is overdue is OK. Services cancellation after 7 days after suspension is acceptable.
Also it is good to keep customer data for another 7 days if customer will want to reactivate services.
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  Post #40 (permalink)   02-17-2016, 04:29 PM
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Originally Posted by Andrius View Post
Also it is good to keep customer data for another 7 days if customer will want to reactivate services.
This will only work if you backup the customers data as if you use WHMCS, CE, Blesta, Hostbill etc. as soon as you click terminate it will terminate the account and remove the site and files from the server and these will be lost forever.
our backup server will remove any backup 7 days after the service has been terminated from the hosting server, but if an account was terminated for breaking our TOS then the client will not get a copy of any backup, if its due to overdue payment then the client will not get a copy of the backup until the outstanding invoices are paid in full.

We do daily backups, but this is not for the clients benefit, it is for our own purposes in case servers go down and need reinstalled. when a client orders hosting they are giving the chance to pay a small monthly fee, which would allow them to request a copy of the backup if they every need a copy due to work they do on their site that goes wrong (we have all done this at some point). If they dont opt for this and ask for a copy of a backup then they pay a one off fee
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  Post #41 (permalink)   02-20-2016, 03:17 AM
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Depending upon service taken we wait few days after invoice is overdue. Also we keep their data for next 1 month as some customer, and leasy and they come back and ask we forget to pay and want to continue etc.
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  Post #42 (permalink)   02-20-2016, 03:37 AM
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Originally Posted by UltratechHostS View Post
Depending upon service taken we wait few days after invoice is overdue. Also we keep their data for next 1 month as some customer, and leasy and they come back and ask we forget to pay and want to continue etc.
but keeping data takes up space that could be used by someone who pays ontime.
As our system gives 28 days from the time an invoice is generated along with at least 6 reminders in that timeframe, we consider this plenty of time for the client to contact us or make payment, as the backup is kept on the backup server for 7 days after termination, then they are free to return within the 7 days to have the site restored as long as they pay any outstanding invoices. After 7 days they can return, but we wont have any backups to restore from. This is is our TOS, so clients are aware and accept this.
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  Post #43 (permalink)   03-08-2016, 09:28 PM
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Originally Posted by easyhostmedia View Post
but keeping data takes up space that could be used by someone who pays ontime.
As our system gives 28 days from the time an invoice is generated along with at least 6 reminders in that timeframe, we consider this plenty of time for the client to contact us or make payment, as the backup is kept on the backup server for 7 days after termination, then they are free to return within the 7 days to have the site restored as long as they pay any outstanding invoices. After 7 days they can return, but we wont have any backups to restore from. This is is our TOS, so clients are aware and accept this.
As long as it's in your TOS then you're fine. But it probably works better for other companies to keep the backups, as they probably have extra space on their servers. Backup space isn't all to expensive, and it's definitely worth it if a client comes back and you have their backup
 
 
 


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  Post #44 (permalink)   03-29-2016, 05:19 PM
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I used to suspend on the 3rd overdue day, and then cancel them on the 7th, why should you pay for space you aren't getting paid for?
 
 
 


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  Post #45 (permalink)   03-30-2016, 05:56 AM
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I used to suspend on the 3rd overdue day, and then cancel them on the 7th, why should you pay for space you aren't getting paid for?
well you still have to pay for your server regardless if client pay or not.
what a lot of people dont understand is that when you suspend a client all you are doing is preventing them from access their control panel and features, all their files etc. are still taking up space on the server. so the quicker you terminate them, then you can re let the space they have took up for free,
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