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I really don't have an issue with someone asking for ID for something like this.
If you're willing to give them your credit card number then what's the issue with a copy of an I.D.?
It protects them because if the address and name on the I.D. match the info you gave them for billing on the credit card then they've covered their ass chargeback wise.
If they didn't do that and lost their merchant account due to high chargebacks caused by fraudulent webmasters then you'd all be bitching that you couldn't pay your hosting bill with a CC and be looking for a new host.
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