Re: [registrars] Deleting domain names to obtain a refund of more than 1 year

["Patricio Valdes" <valdes@parava.net>]

Bhavin,

I could not agree more on this.

I it my personal opinion that when Verisign noticed that Registrars were
submitting 1 year registrations when the client was actually paying for 5 or
10 years to protect us against cases of Chargebacks, decided to implement
the changes in the Whois, so that clients and people could actually see for
how many years their names were actually submitted, forcing us the Registrar
to submit the domain to all the years registered.

The only people left to loose here is the Registrar and Verisign knows
it.......


Patricio Valdes
Parava Networks


----- Original Message -----
From: "Bhavin Turakhia" <bhavin.t@directi.com>
To: "'Registrar Constituency'" <registrars@dnso.org>
Cc: "'Chuck Gomes'" <cgomes@verisign.com>
Sent: Saturday, February 08, 2003 2:23 AM
Subject: [registrars] Deleting domain names to obtain a refund of more than
1 year


> Hi,
>
> There was a discussion earlier about the risk that we as registrars bear
> when payment for domain names chargeback due to fraudulent transactions.
> I have taken a consolidated history of all my cc transactions and
> determined that we are making a loss on all cc transactions due to the
> chargeback transactions.
>
> Today there was another chargeback on a 5 year domain name. I figure
> from my costing that each 5 year domain name that charges back, we have
> to sell around 120-150 domain years to recuperate that loss. Despite
> EXPENISVE manual fraud detection processes, we still cannot reduce
> fraudulent transactions to less than 2%. This ensures that we are always
> in a Loss in our cc transactions.
>
> * This discourages us from using CC Transactions as a payment mode
> * Increases our processing time and headaches for fraud detection
> * Inflates our costs dramatically
>
> Verisign (and the other Registries) need to come up with a refund of the
> remaining years on a domain name. So if a 5 year domain is deleted, I
> need to atleast obtain a refund on 4 years worth of money. This is a
> standard anywhere else in the industry. If a servic is not rendered it
> does not make sense paying for it.
>
> More than the above statement that I make it is important that the
> Registries put in this feature to allow us Registrars to minimise our
> fraud losses, and thus be comfortable in offering credit card payments.
> This is quite an easy feature to build in to the current system.
>
> I am assuming that since it is affecting us - it should be affecting
> various other registrars to a similar extent
>
> Best Regards
> Bhavin Turakhia
> Founder, CEO & Chairman
> Directi
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