Don't often agree with you BD but you are spot on this time. I would of notified the CC processor as well to make more investigations.
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i think some hosts go too far in verification methods. ie scanning your cc, drivers licence, etc. i will never do that for a host. but this seems perfectly reasonable.
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They do not know what you might be hosting, so have every right to know who you are. If you want to be anonymous go work in another industry that is not so easily open to abuse.