Unfortunately, we will be unable to activate your hosting account at this time using the documents you provided. We apologize for any inconvenience this has caused. If you would like to activate your account, we will require payment for the initial invoice via Western Union or bank wire. A minimum payment of $25 will be required for the first payment. Once you have successfully paid in this way, you will be able to pay using a credit card or Paypal in the future. If you choose to continue to pay via Western Union or bank wire after the initial invoice, we will require a minimum payment of $100. This was from hostgators...
Yes it common for every new sign up. They do this coz they faced a lot of reverse chargeback from CC and paypal.
Yes, you need to do exactly what they told you to do. You need to either Western Union or wire transfer $25 to initiate your account. After that, you will be able to pay using credit card or PayPal. If you still want to try to get verified, you will need to contact their Support or Billing Department (probably Billing/Sales) and ask them if there is any alternative method you can use for verification. Nobody here can answer for HostGator, especially your specific details.
What? That sounds stupid, I'd perhaps go wire transfer but why the hell would I use Western Union to pay them. I use WU to send money to family overseas, not to pay for hosting.
Does seem a bit harsh, but it's their business and that's the rules they employ to make sure they KNOW who they are dealing with. They aren't forcing anyone to host with them, and if you don't want to do what they ask you don't need to: you just won't get any hosting with them. Some people are too quick to do a chargeback for minor things, and the retailer usually has to jump through hoops to prove the sale was legitimate....and still lose their money which includes the money for their service PLUS the fees taken by the card company when processing the initial order PLUS the fees and charges for carrying out a chargeback. By being willing to pay up-front they are more likely to be satisfied that you are a genuine customer, and once you use their services without causing problems they will eventually start to let you use a credit card. With a large company like Hostgator your initial payment isn't really at risk. With a small or new company, paying a large sum up front may not be the wisest thing to do.
Or you could go through the documentation process using the documents they need. Since you were unable to provide the appropriate documentation, they obviously feel you're a high-risk client. Aside from that, looks like you're going to have to find a new host.