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This is a common problem that seem to occur frequently. Many people ask me this question, and until recently I had no good answer. Why web hosting accounts get charged twice?
When a reservation is made, or a recurring service is due, the bill is sent to the client with payment details. An account could be a simple e-mail instruction client to pay funds to the hosts PayPal account via the PayPal interface, or the payment button on the account that connects directly to the PayPal page.
When a customer makes a payment, the host automatically (or manually, depending on whether or not the billing system is used) register the payment and the service is extended to the new maturity.
So this seems clear, what can go wrong with this? Well, there are three parties involved
1: .. The machine, which sends the account, wait and register payment, thus extending
2: The customer who receives the invoice and makes payment
3 :. PayPal, carrying amount paid by the payer (the client) to a recipient (host), and then, if the host has this set up, send notification of payment to the host.
Note that the host can not charge or bill the client. The PayPal system does not work that way. It is always the customer who starts payment.
In the above scenerio, it is quite possible that the host simply does not check your PayPal balance, thus never knowing that the payment has been received. But this does not result in a double charge. Remember the host can not in any way withdraw money from the clients PayPal account. The machine may very well send invoice reminders, and suspend accounts in worst case.
So when is the start?
The big problem is the PayPal subscription feature. The subscription feature was created for people who do regular PayPal payments to other people or companies. Ideally suited for recurring amounts, such as web hosting. The PayPal subscription is also initiated by the client, not the host, and it can only be down by the customer. With some billing systems, the host can not even see the PayPal subscription is in place, nor see the date of the next payment will be received.
Whenever payment is made by PayPal, the payer is given a subscription choice. If the subscription is created, PayPal will transfer the amount every month on the date of the first payment was made. Some hosts provide two PayPal buttons on the invoice or e-mail, one for the normal PayPal payment, and one for the PayPal subscription option.
In the PayPal subscription scenario, it is PayPal to transfer funds according to the payers wishes. The machine is only to get money.
So now we have two parties responsible for transferring payments. The client making PayPal payments manually, or PayPal making the payments regurlarly according to the clients wishes.
With PayPal subscriptions, the invoice gets obsolete. The sum is always the same every time, and PayPal transfers it to the host without interaction from the client. But again, the host may not know that the client uses a PayPal subscription to pay the bill. Some hosts suspend sites pretty quickly on non-payment, and reminds the client a few days before the due date that it is time to pay the bill.
customer receives the invoice reminders, thinking that its overdue, or forgetting about the PayPal subscription, and pays it. A few days later, PayPal makes the transfer according to the subscription, and the machine is paid twice.
This has been the case in 4 out of 5 times when someone has approached me with this problem. It is not the host who charges the client twice, her client who pays the host twice.
There is another feature that complicates things even more. Remember that the PayPal subscription payments are made automatically each month on the same day that the first payment was made? Then consider what happens if the first payment was overdue.
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