All new Registrations are manually reviewed and approved, so a short delay after registration may occur before your account becomes active.
Xeroz Tech Complaint - Buyer Beware
So I opened a thread on LowEndTalk, advertising my specific needs/wants for a VPS. I was shortly contacted by a company called Xeroz Tech, via PM.
I went ahead and purchased three months of the server with Crypto, they setup my server within minutes.
Fast forward to later in the day, I found out my business partner purchased a much faster dedicated server, for our business, with Hetzner. I then promptly opened up a ticket with Xeroz Tech to cancel our services, effective immediately, and for a full refund.
Five days later, the owner of the company, Patrick, replied stating that due to due to their Policy he is unable to provide me with a refund, he can only provide me with store credits. Mind you this is for a VPS (a VM, most likely in a hypervisor), they can easily erase my instance and credit back my money, but they are refusing to do so. I have since stated that I'm willing to only accept a refund back to the original payment method, its been four days and I have yet to receive a response.
Very sad to see a company holding my $23 hostage. Stay away from this provider, they have no desire to get their customer's taken care of and their response times are unreasonable.
Comments
If you ever consider wanting a refund from a company, don't pay in cryptocurrency. Things like this are a pain in the ass.
Lesson learned, didn't think this would happen.
That's not Amazon... You purchased and got delivered service not an item. I don't find your demand reasonable unless there was really something wrong with the service delivered.
Cancellation works within the end of the billing period not "effective immediately" just because you feel so.
Yea, these guys are really bad. I bought an India VM from them, they shut down location after barely 3 weeks..I was moved to SG, which was fine too. One fine day, they suspend the VM saying they are unable to track payment. True, I was not able to find it on their buggy panel either. Sent them screenshots of email (invoice and receipt) and sent the PayPal transaction ID. Apparently that was not enough too, they needed even more details.
I charged back partial amount (my first time ever, and out of my courtesy since I used it for a month, had payed quarterly) and moved on, looks like they didn't even realise it, did not even respond to the dispute.
To anyone reading this, stay away from these clowns.
Edit: On top of that they had the audacity to DM me here, asking if I wanted to resell their services.
Yeah Lesson learned that you should read their tos before buying something.
I read their tos saying
Our No Refund and No Credit Policy:
All Sales Are Final: Once a product or service is purchased from Xeroz, it is considered final. We do not entertain requests for refunds or credits under any circumstances.
But they are willing to provide you with credit.
Yeah, they may be clowns but in this particular case it's not on them. The client changed his mind before the end of the billing term and requested a refund because he got a better deal elsewhere.
Fair point.
As a small business owner, my request is completely reasonable. They didn't exhaust resources on their end that aren't reproducible. Sure charge me a restocking fee, but refusing to provide me with a refund is unreasonable
No, it's not. Not just because you feel so. You paid for service, got it delivered and then you changed your mind in the middle of the billing period solely because you got new service elsewhere.
For some reason, you feel like you have a right to dictate terms of service cancellation you purchased before the end of the billing period. You don't.
A refund would be solely at their own discretion as a sign of goodwill, not obligation. You're in the wrong.
First of all refund will never be done back in crypto even if you payed crypto since of its volatility. Providers will transform it to EU/USD instantly upon receiving payment (or gateway) , so you will be returned in normal currency.
Second of all, they did provide a service and the service works. Also they have TOS clearly written.
So please do not punish the provider with complaint threads just cuz you feel like it, since they did not do anything wrong.
If you happen to be a EU consumer you might have certain rights under "Directive 2011/83/EU on consumer rights". Not sure how paying with crypto affects that, and if you bought as a business they might not apply either.
He is a small company and consumers != companies
Xeroz Tech is definitely a scam, no doubt about it.
But not in this specific case, right? Or where exactly do you see scam here?
where is the money?
What money?
Let me ask you again. Where exactly do you see scam from hosts' side here?
Client purchased service, service was provided, client changed his mind after some time, because he found another deal ... and demanded money for already active service back.
I am not defending host in general, but in this particual case it's not on them.
Many providers, myself included, does not refund crypto payments. There can be huge fees involved with doing so, fees that could cost more than the payment itself if it is a cheap VPS.
You can ask for the payment to be added as account credits if you need it in the future. But they do state in their TOS that they do not refund purchases. You not reading that does not make it a scam, as they did deliver the service you purchased.
Agreed to no refund policy, surprised pikachu face when denied refund. Thread title should be changed.
Well, if they still have the same legal framework as last time i've checked, chances are practically all of their terms are null and and void. If they were in the US that would likely be less of a problem (outside their inappropriate to-be-filled TOS) but i highly doubt their no-refunds policy means much inside the EU. Highly unprofessional if one asks me and my verdict when i've looked into them some time ago was: Kids.
Edit: Just saw that OP is a business. Well then he doesn't have much to stand on i guess, besides the terms still being a mess.
These are also the same guys that made an insane dedi deal on black friday just for people to find out on the order page that it's usage was limited to 3h per day.
Pretty strange operation. Their VAT registration and address is seemingly the same as @DirectNodeNL 's (and according to google is/was when i checked also used by at least some egghosting thing on instagram and back then Xaroz.net, which is an obvious @DirectNodeNL spinoff at least) which told me they belong to but aren't operated by them while @XerozTech told me another story and called @DirectNodeNL their partner.
Having said that i'll call OP a little crazy for purchasing at all...
Who cares about laws. Stand by the value of your word. I have no sympathy for someone who agrees to no refund and then demands one when the vendor did nothing wrong in delivering what was ordered. A handshake agreement should be enough between two civilized people, calling the police when the other party kept up their end of the deal would be a dick move even if you could.
Agreed. I'm pretty sure they didn't read any of the terms at all or if they did are pretty careless with who they give their money to.
A store credit is MUCH better than getting no refund at all. Crypto is a pain to get a refund. Goodluck next time
If someone pays me in crypto and requests a refund, they will receive the equivalent in push-ups.
That's my policy.
Hi,
Thank you for the mention. The new legal documents are with a legal entity and undergoing review, so they will be published shortly.
The name EggHosting is an old trade name of DirectNode, which used to operate game hosting but has been inactive for several years. I will explore the possibility of deactivating the associated social media accounts to prevent future inquiries and provide clarity.
I am also in discussions with Xeroz, and they are currently making improvements. The customer mentioned above is being contacted as we speak.
PS: Crypto refunds can be challenging due to varying fees.
I hope this provides some clarity.
Well, kind of. Personally i already know this as we had spoken about these issues anyways but i can kind of imagine how this went further down the line: "Sure, we'll look into it." and then a whole lot of nothing.
From my impression i guess this is a reseller of yours that you allow to operate under your company for some reason. Well, i guess the reason being them bringing in business. To be honest i wonder how much they are making though as i personally wouldn't want a part of my company to operate on some kind of zero fucks given model.
I mean their TOS is for some kind of online auction site and has a ton of empty to-be-filled spaces... Just look under "8. PROHIBITED ACTIVITIES": I may not frame the site, impersonate other users or upload web bugs but in relation to a server obviously everything is fair game (the TOS says nothing about those or anything related after all - funnily enough the FAQ claims crypto mining would be prohibited). Which semi-serious person uploads this and thinks "Well, this is fine."?
Besides, as far as i understand Dutch law you probably should also be named as the operator on the site as with Xeroz using your VAT number i'd assume their name is unlikely to be listed at the companies register, so to me it seems people signing up there are effectively becoming clients of yours.
P.S.: I still wonder what happened to the poor people, who in the heat of black Friday mistakenly ordered the 3h/day dedi. Did they also get slammed with the no refunds pamphlet (it was like 40+€ upfront after all)? I guess, we'll never know. As far as these were private consumers i pretty much doubt writing a PDF saying "no refunds" will actually void the Dutch cool down period though + if those people are located in the EU there is also the consumer protection policies of their place of residence on top of that (which in parts are quite resilient to being waived).
Nope. The 14-day refund rule in the EU only applies to physical goods bought online, not online services. And OP didn't buy as a consumer.
Depends on country i think. If i'm not fully mistaken Hetzner honors Wiederrufsrecht and i've seen this with quite a couple services over the years (not necessarily servers/VPS). Obviously still not applying to OP when ordering B2B.
I think at least in regards to Germany waiving the cancelation period is at least possible for virtual goods under some narrow circumstances when the seller already started to provide service. For physical goods i doubt waiving would work at all.
I'm not a lawyer and this EU consumer protection stuff is seriously annoyingly complicated though.
Yes, but they do it voluntarily, not because the law says so.
It's fully legal to write the 14-day cooling-off period ends when the consumer starts using the service. For the same reason, you can't get a refund on domain names.
see FAQs - Guarantees and returns
Yes, there are certain exceptions (which will likely apply to domain names), but services are not completely excluded.
Yeah, that's how i've experienced it too. It's usually something along the lines of "Click here if you are OK with waiving your cool-off period so we can start rendering the service immediately.". From what i hear it's very important how that's worded/realized (some even argue it needs to be an actual checkbox during the order process) though. That's why i guess that simply saying "No refunds. Kthxbai." is probably not really effective.