GoDaddy fraud problem

[armstrong]

I recently purchased a domain from a fellow NPer, who registered the same domain through godaddy about 2 weeks ago. The domain was successfully transferred into my account a week ago, but later godaddy revoked the transfer on the grounds that:

Unfortunately the domain has been removed for fradulent reasons and it would cost $35 to get it back and moved into your account.

The fellow I bought the domain from claims that his bank confirms that godaddy took his payment. But now without any explanation to him, they froze his entire godaddy account.

Since there does not seem to be any chargeback involved in this transaction, godaddy should not benefit by charging me $35. If they really suspect fraud, then they should simply refund the original payment (to forestall a chargeback), then charge *me* reg fees on my newly-transferred domain!

What do you guys think? Has this happened to anyone else?

 

[Grrilla]

Never had this problem, but because most of my regs are w/ GoDaddy am very interested in seeing more detailed facts about the transaction, (excluding domain in question and sellers name, of course, and already know you had this in mind),and how the senario plays out, as well as what GoDaddy's justification and actual incurred expense would be.

 

[GTech]

Most of my regs are at godaddy.com. In fact, with what I normally buy (self-interest), I usually pay and transfer them over.

I've not seen this kind of problem. I've never seen a million dollars either, but I know it exists.

 

[nicholas]

I haven't had this particular problem with GoDaddy, BUT I've had OTHER problems with GoDaddy, unfortunately, which is why this particular event isn't surprising.

 

[Anthony]

GoDaddy has been my main domain service and I've never had any problems with them, but this latest problem you detail is worrisome. Please let us know what happens!

 

[Jeffrey]

Thankfully, i no longer have any domains with Godaddy as of present. Namecheap is my main registrar.

 

[aww]

The only thing I can think of is that they sent GoDaddy a bad check or used someone else's CC without permission (maybe their parents considering the age of some folks around here) and then the charges were disputed.

Can't blame the company for wanting payment, however $35 is full list price and that is not playing fair. At least they gave you the option to continue owning the domain, because technically if the charges were reversed they don't even have to do that much.

Did you ask GoDaddy why $35 and not their standard $8.95 price (assuming it is a .com)

 

[armstrong]

The domain was regged Feb 6, and godaddy revoked the reg Feb 16. No bank I know moves this fast to process a chargeback, so I believe the seller when he tells me that his bank honored the charge.

Am currently awaiting godaddy's response to my email. BTW, I also gave them the link to this thread, so its likely that someone on their end will read our comments on this incident.

 

[RJ]

What is the justification for the $35 price? It certainly does not seem fair that you should have to pay a fee when you are uninvolved in the credit card transation.

 

[armstrong]

The only justification they gave was what I quoted:

Unfortunately the domain has been removed for fradulent reasons and it would cost $35 to get it back and moved into your account.

 

[Anthony]

Originally posted by armstrong
The only justification they gave was what I quoted:

That's a pretty sparse explanation and not one generally in the form of GoDaddy's support responses. Really weird.

 

[armstrong]

Here's a more detailed explanation from godaddy:

The original purchase of the domain name was refunded due to the contact information for the purchase being invalid, and our fraud department was not able to verify the charge. Unfortunately this means that the domain is repossessed in our system, and is only available for purchase from our 'Used Domain Store' for the price of $35/year.

The reason that we cannot allow you to continue owning the domain is that we have no way of verifying that you are not the same person that made the fraudulent charge to purchase the domain, or are not in any way involved with that person, and just moved the domain to a new account to cover the fraudulent purchase.

Since it is most likely that you are not connected with the fraudulent account in any terms other than the fact that you purchased the domain name from them, in good faith that it was registered legitimatly, it is unfortunate that you had to lose the domain name because of another person's actions.

However, we are not able to return the domain to you. I want to apologize for that inconvenience. The only thing that I can recommend is for you to contact the person through which you purchased the domain name to see if they will return the funds that you paid for it, as they were refunded for their purchases in our system when the domain was repossessed.

Please let us know if we can help you in any other way.

So goadaddy can "repossess" domains, then charge $35 for it. Amazing!

 

[Riceman]

Originally posted by -RJ-
What is the justification for the $35 price? It certainly does not seem fair that you should have to pay a fee when you are uninvolved in the credit card transation.

I echo that, just another godaddy way to squeeze more money out of people


:yell:

 

[CenterPoint]

Originally posted by armstrong
Here's a more detailed explanation from godaddy:



So goadaddy can "repossess" domains, then charge $35 for it. Amazing!

In some ways I really can't blame godaddy. If the buyer cannot be verified and there are red flags it is not worth the possibility of a chargeback

Normally questionable transaction result in the domain being canceled and returned to the pool

 

[Raf]

Thats really weird, I feel sorry for you armstrong.

 

[Ivanshih]

Their give me this refund mail, but no reason why refund my money and take the domain back. Then I check with the bank through tel and email, they comfirmed payment dealed and godaddy.com take the pay.

Dear #####

Thank you for ordering from GoDaddy.com!

==============================================================
CUSTOMER NUMBER: 3064424
LOGIN NAME: #######
RECEIPT NUMBER: #########
ORDER TOTAL: $(4.95)
CUSTOMER SERVICE: (480) 505-8888

==============================================================
You may review your refund status at any time at:
https://www.godaddy.com/gdshop/orange/receipt.asp?order_id=10554538R

==============================================================

QTY ITEM PRICE -1 .BIZ Domain Name Registration - 1 Year ($4.95) *****.BIZ -------------------------------------------------------------------------------- Subtotal: ($4.95) Shipping & Handling: $0.00 Tax: $0.00 Total: ($4.95)

==============================================================

Sincerely,
GoDaddy.com

 

[armstrong]

I won't blame godaddy for cancelling the purchase based on statistical fraud indicators (ie, red flags). I myself do this routinely for my online businesses. But to turn around and charge me $35 for a $5 item?

Also, what if I succcessfully backorder a valuable name through them? Can they 'repossess' the name, refund my $15 backorder fee, then turn around and sell the name for several hundred?

Ridiculous!

 

[CenterPoint]

Originally posted by armstrong
I won't blame godaddy for cancelling the purchase based on statistical fraud indicators (ie, red flags). I myself do this routinely for my online businesses. But to turn around and charge me $35 for a $5 item?

Also, what if I succcessfully backorder a valuable name through them? Can they 'repossess' the name, refund my $15 backorder fee, then turn around and sell the name for several hundred?

Ridiculous!

I would pick up the phone and speak directly with GD support. Given the situation they may be willing to make a concession

 

[Grrilla]

I would pick up the phone and speak directly with GD support. Given the situation they may be willing to make a concession

I have had some success by developing a relationship w/ the individual at the other end of the phone, and then transacting through them. The customer service/sales people (merged at GoDaddy) are motivated to work for you because they work off of a commission. In turn, they will run down problems for you and you will have a direct email to them and avoid getting passed around. There is a turnover, however, so it is necessary to "refresh" your contact periodically. :talk:

 

[Bill1]

Originally posted by Grrilla
I have had some success by developing a relationship w/ the individual at the other end of the phone, and then transacting through them. The customer service/sales people (merged at GoDaddy) are motivated to work for you because they work off of a commission. In turn, they will run down problems for you and you will have a direct email to them and avoid getting passed around. There is a turnover, however, so it is necessary to "refresh" your contact periodically. :talk:

nice advice