Hi, I noticed that some people suggests one can create temporary linode where he can do his testing, check performance, update system etc. without affecting production server, but I wonder whether this is not kinda mean misuse of pro-rated refunds.

There is hassle with credit card payments, significant (?) use of resources and Linode earns only few cents.

So I'd like to ask whether these one-time use Linodes are pain in the ass or they aren't of issue. And if they are, whether you plan to create some model of second-grade nodes people can do their test stuff on and make some payment methods less painful.

The entire process is automated, so Linode isn't really expending any resources with it. It'd really just be credit card fees that potentially cause issues.

Then again, if the credit card fees are strictly percentages, it wouldn't be an issue.

But they are not. There is a charge for the "swipe" (whether that's physical or virtual). That's a flat charge. Then there is a charge that's the percentage of the entire transaction.

I looked at my billing history and they charge you right when you sign up, not after the first 7 days. So if you sign up and cancel within their "money back guaranteed" period, Linode will be out money having had to have paid twice to process your credit card. This may be one reason why it's 7 days and not 30 days.

I'll bet they eat at least $1.00 to $1.50 for every person that does this. Probably $0.25 flat per transaction (coming and going) and ~$0.50 (based on 2.5% of $19.95) coming and going.

Here's a site that lists some fees from a couple credit card processors:
http://www.west-wind.com/webconnection/ ... viders.asp

See Google Checkout's prices:
http://checkout.google.com/sell/

I've shopped around and while all processors charge different rates, this is the same ballpark they all play in. Granted brick-n-mortar stores typically get lower rates because there is generally less risk associated with them than with internet based businesses.

Yeah, but for an existing customer, they don't give you your money back, they credit it to your account. At worst, it's one extra swipe (eg, it's mid-month, you take one for a couple days, end up with 12-13 days credit in your account, swipe at beginning of month to cover the rest of a month's fee.

When you remove a Linode the prorated credit is posted to your account (not refunded to your card). This credit is then automatically applied to your next invoice(s). If you only need a Linode for a few days then go for it!

-Tom