I've got 5 ordered last month. Today 2 of them has been corrected with unknown reasons but I think it's about customer return product or use fraud credit card purchased. I lost $200. Why web hosting industry have a high reversal rate?
Maybe someone signed up, and canceled before the next month came. They can't payout $100 if the customer is not intending to stay.
The web hosting industry has a very high rate of fraud in general. When I used to own a web host, up to 25% of all orders that came through were fraudulent (we manually confirmed all orders that looked suspicious, which can take a lot of time and effort). Most hosts just process the transaction with automated fraud checks, that often aren't the best.
That's a good point I've to avoid pushing too much on a hosting which is promoted as "free one month trial"