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Comments
you can do a lot of damage with a server. they want to know who you are in case you decide to do something nasty.
Actually it's so they can send you a free bottle of wine at christmas.
some providers ask in India also id as aadhaarcard.
to protect the server from an abuser.
Because Hetzners deals are so cheap (Compared to big names, maybe not compared to the deals that frequent lowend*) they have to protect them with processes like this to avoid malicious users getting hold of cheap servers and using them for, uh, malicious things I guess.
To answer the question yes if you prepay 20 with PayPal then you won't be required to give ID any longer, I assume this is because the PayPal money trail is hard to avoid.
Also worth noting not all new users are asked to present ID (I wasn't, a close friend was), its just ones detected by their seemingly rather trigger happy abuse detection system. Usually things like connecting from a vpn will flag these, among numerous other obscure details that nobody will ever truly know for sure.
Actually no, even if you prepaid $20, it's not a guarantee that you don't need to provide ID.
I prepaid $20, and still asked for id.
So they can apply appropriate tax based on your country.
Like me, I don't have to pay tax, so my price is reduced 18% from the pricetag, yippee.