NameCheap.com

[NameVisual]

I own over 100 domain names at Namecheap,com and last year I issued a few charge backs that I tried to resolve with customer support. They are trying to charge me $200 per charge back and they attempted to hijack all my domain names.

I got them to unlock all my domain names that they tried to steal and they told me I couldn't use any of their services until I paid their ransom demand.

I thought it was resolved after I told them I was not paying their ransom and that charging for a charge back is very unethical.

In the last week, I starting receiving more threatening emails informing me to not use their service and after my domains expire, I would have to transfer them out. They didn't like my response to their threat so they are now saying I have to transfer all domain names out by tomorrow or they will once again hijack them from me.

What is everyone's thoughts on this?

Do I need to hire a domain name attorney?

Thank you.

 

[NameVisual]

Plus I have the expense of transferring domains that I paid Namecheap for and still have 10 months left on some of them. That seems like another scam too since they are just going to keep that money as well. Then they will sell my domains and get that money too.

 

[anantj]

Okay. So you understand the concern with chargebacks, you (hopefully) now realize why Namecheap is charging you chargeback fees. Not sure if you're planning to transfer out remaining domains out or not. What solution are you now looking for? There are three options that you now have: 1. Don't do anything and lose all your domains, 2. Transfer out the remaining domains and lose the domains you chargebacked against, 3. Pay the chargeback fee and eat your losses as a mistake.

If the locked domains are not very valuable, option 2 remains the best outcome for you currently.

 

[NameVisual]

Okay. So you understand the concern with chargebacks, you (hopefully) now realize why Namecheap is charging you chargeback fees. Not sure if you're planning to transfer out remaining domains out or not. What solution are you now looking for? There are three options that you now have: 1. Don't do anything and lose all your domains, 2. Transfer out the remaining domains and lose the domains you chargebacked against, 3. Pay the chargeback fee and eat your losses as a mistake.

If the locked domains are not very valuable, option 2 remains the best outcome for you currently.

I do. However, the chargeback fee is too high in my opinion and they should have resolved this when I tried to with them. It's kind of strange that they didn't seem to care about me issuing a chargeback before I did it and now charge me $200 or hijack all my domain names.

So now I am going with option 2 and transferring out my valuable domains, which is costing me more expenses. I have a lot of time remaining on them so what about the money I paid them for the yearly registration? They just keep it? Not ethical in my opinion.

 

[anantj]

So now I am going with option 2 and transferring out my valuable domains, which is costing me more expenses. I have a lot of time remaining on them so what about the money I paid them for the yearly registration? They just keep it? Not ethical in my opinion.

When you transfer, the registration of all the transferred domains will be extended by a year. So your funds were not really wasted. You just have more time before you need to renew again (or to sell them )

 

[Name Trader]

I do. However, the chargeback fee is too high in my opinion and they should have resolved this when I tried to with them. It's kind of strange that they didn't seem to care about me issuing a chargeback before I did it and now charge me $200 or hijack all my domain names.

So now I am going with option 2 and transferring out my valuable domains, which is costing me more expenses. I have a lot of time remaining on them so what about the money I paid them for the yearly registration? They just keep it? Not ethical in my opinion.

Point 1: The support knew what the remedies were in their ToS for chargebacks and supposed that you knew too since you were threatening to make these chargebacks. And I presume you put this forcefully to them, just like you said, "no way", that you were going to pay the chargeback fees and accuse them of holding your domains for ransom. It doesn't leave any room for any discussion if they half their chargeback fees and you don't accept any responsibility for erroneously making these chargebacks in the first place. Which is a completely untenable position. IMHO. You reap what you sow.

Point 2: Was answered by @anantj above. It's not that you have actually lost any money, you just paid early for the transfers. You don't lose any time if you transfer early. You get 1 year added to the end of the current expiry period. Jeez! This is Domaining 101.

Point 3. I think you should take some third party advice on what you think are your valuable domains. Because the 2 examples you gave earlier in this thread, were way off mark. If you like, you could PM me a list of your domains I will run it through Estibot.com and give you the results. I'm not saying Estibot is accurate at predicting the future sale price of your domains. But it would give at least another point of view. Since the evidence so far is you are way overvaluing your domains. You might be able to save some (more) bucks by leaving some domains at NameCheap. Which seems to be the policy you have decided upon.

 

[Name Trader]

It's now 7AM EST Friday 16th February. So have they now locked down your domains?

 

[MapleDots]

It's now 7AM EST Friday 16th February. So have they now locked down your domains?

I very much doubt they will, it would be a customer relations nightmare. Domainers are watching this topic, namecheap can never lock down domains. The blowback from that would be horrendous. If I cannot trust my registrar they will lose hundreds of registrations.

 

[Name Trader]

I very much doubt they will, it would be a customer relations nightmare. Domainers are watching this topic, namecheap can never lock down domains. The blowback from that would be horrendous. If I cannot trust my registrar they will lose hundreds of registrations.

They are only applying what it says in their ToS. Which is open for everyone to read BEFORE doing a chargeback, or deciding not to do business with them. The latter is a bit of a problem, because most registrars have some kind of chargeback system implemented in their ToS. If any registrar doesn't follow their ToS, I'd say that would be a big black mark about ever using them as a registrar.

I think there are plenty of people watching this thread, including me, who think NameCheap are in the right here to implement their ToS. They have said they sent the renewal reminders to NameVisual. For him to receive those reminders and not take any action, and then complain after the renewals were charged, is incompetent, at best. I also don't buy the "oh I didn't know is wasn't always free" argument. When it's plastered all over their website and every promo that mentions NameGuard says it's $2.99/year after the first year. Just click on the NameGuard link at the bottom of their website. What does it say? They haven't just buried this away obliquely inside their ToS. NameCheap even offered a compromise and offered to reduce their chargeback charges by 50%. This was also rejected. There is only so much a registrar can do to bend over backwards to satisfy a customer. There was no counter offer from NameVisual except abusing NameCheap by claiming they have hijacked his names and are charging a ransom to get his domains back. Which is completely untrue. If the OP doesn't even bother to read the ToS before making a chargeback, so he knows what he is getting into. More fool him.

On a side issue. This is why I NEVER have automatic renewals set on ANY of my domains. It takes away options to change your mind about your registration. Which NameVisual had selected for all his domains, it seems.

 

[Platinums]

it was autorenewal?

 

[Name Trader]

it was autorenewal?

Obviously. Otherwise why would he allow to be charged for NameGuard if he renewed them manually.

 

[MapleDots]

On a side issue. This is why I NEVER have automatic renewals set on ANY of my domains. It takes away options to change your mind about your registration. Which NameVisual had selected for all his domains, it seems.

Unless you're superman that is a very bad move. People die or get critically insured and your most valuable domains can expire. The only correct way to do that is to be diligent and set your most valuable domains on auto renew and your so so ones on non. Personally I think there should also be an option for two different credit cards to be attached to the registrars account just in case one get declined.

Just like deposit insurance or life insurance, you must always be prepared for the worst. Nobody is immune to sickness or accidents. Stub you give a ton of great advice but it is very easy to turn on auto renew and review your domains 60 days before renewal to adjust them where necessary.

I have all my domains on a spreadsheet and I can sort them by expiry and then registrar. I can tell at a glance and I keep a tight grip but to shut off auto renewal on my valuable domains would never be something I would do or advise other people to do.

 

[MapleDots]

It's now 7AM EST Friday 16th February. So have they now locked down your domains?

They said previously they would only lock down the ones affected by the chargebacks. I still hope they don't hold any domains for ransome, that would not be good. I do understand their TOS but they should tell him to move to another company if they don't want his business. They have to be very careful to never insinuate someone could lose a domain. I have to have full trust in my registrar, that is everything, if they ever threaten to take a domain I will be so gone it's not even funny.

 

[anantj]

I very much doubt they will, it would be a customer relations nightmare. Domainers are watching this topic, namecheap can never lock down domains. The blowback from that would be horrendous. If I cannot trust my registrar they will lose hundreds of registrations.

I don't agree. What is to stop every other customer to start doing this for registrations that they later regret? Regged a junk name last night. Don't like it anymore today morning, let me just file a chargeback. What's the most NC can do because they are afraid of domainers? Lock down the junk domain and I'm home scot free!

Nah, I support NC in this matter and to run a viable business, these are calls/decisions that they have to take

 

[anantj]

They said previously they would only lock down the ones affected by the chargebacks. I still hope they don't hold any domains for ransome, that would not be good. I do understand their TOS but they should tell him to move to another company if they don't want his business. They have to be very careful to never insinuate someone could lose a domain. I have to have full trust in my registrar, that is everything, if they ever threaten to take a domain I will be so gone it's not even funny.

They said they will lock down the account because chargebacks are marked against the account. Also, they have given OP time to transfer out all unaffected domains. The op mentioned that they plan to do so... I think that's what @stub was asking about

 

[Name Trader]

@MapleDots - How do you know I don't already have a backup plan in case of emergencies? Well it's true I don't at this time, but I'm working on it, in case of death or incapacity I just think you get 30-40 days at most registries to renew your domains, and a whole 12 months before renewal to renew them also. There is ample time to actually renew your domains. You are not forced to have the funds available on a particular day just because you have auto-renewal turned on. It leaves some flexibility in your renewals.

I tend to work in rolling 3 month blocks when I manage my domains. So up to 3 months before the expiry I will look at the domains expiring and renew all my must have domains. Which then give me to time to ponder on the rest. Do I drop them? Do I lower the price? Do I knock them out on NPs? Try something different with them? This system has worked for me quite well up till now. In fact I think it works just as well as placing all the must have domains on permanent renewals. Also your opinion on some domains might also change with time.

Well after defending my strategy of renewing domains which is partly tangential to this thread. Let me ask you that given the facts of this case, as far as we know them, do you honestly and seriously think NameVirtual still has a case to win? Or do you think it's a lost cause? And why? Are you happy to see registrars go against their own ToS just to keep an undeserving customer happy? What does that say to other customers? Is it fair for previous and future customers? Don't you agree with me that if you see a registrar making decisions against their own ToS, they don't deserve to keep any customers?

 

[MapleDots]

@stub you bring up a lot of valid points but the OP is not a regular client of the registrar, he is a domainer and therefore the registrar has to be careful when making decisions. Cutting off domains would have to be an absolute last resort. If I had hundreds of domains with them and talked turned to me not having access to my domains then all trust would be gone. They need to work with the client, they need to tell him he is responsible for a debt and if he does not pay he has the option to take his business elsewhere. Threatening to lock domains is not a good idea.

I think the deadline will pass without a lock, I have more faith in namecheap, I think they will settle it amicably. I think they are owed a fee, the only question is what is fair and in the end this topic will be a lesson for all of us.

 

[NameVisual]

It's now 7AM EST Friday 16th February. So have they now locked down your domains?

The last email they sent me said I now have until February 19th so they are still unlocked. I appreciate them adding more time for me.

 

[NameVisual]

When you transfer, the registration of all the transferred domains will be extended by a year. So your funds were not really wasted. You just have more time before you need to renew again (or to sell them )

Oh I see,that is nice to know. Thank you!

 

[NameVisual]

I very much doubt they will, it would be a customer relations nightmare. Domainers are watching this topic, namecheap can never lock down domains. The blowback from that would be horrendous. If I cannot trust my registrar they will lose hundreds of registrations.

I hope not but they actually did lock all my domains last year and I was able to convince to unlock them. I basically explained that it was really bad business practice to hijack all my domains that had nothing to do with the chargebacks. I told them the BMW car dealer scenario that I posted on this thread and they unlocked them.

 

[NameVisual]

@stub you bring up a lot of valid points but the OP is not a regular client of the registrar, he is a domainer and therefore the registrar has to be careful when making decisions. Cutting off domains would have to be an absolute last resort. If I had hundreds of domains with them and talked turned to me not having access to my domains then all trust would be gone. They need to work with the client, they need to tell him he is responsible for a debt and if he does not pay he has the option to take his business elsewhere. Threatening to lock domains is not a good idea.

I think the deadline will pass without a lock, I have more faith in namecheap, I think they will settle it amicably. I think they are owed a fee, the only question is what is fair and in the end this topic will be a lesson for all of us.

Last response from Namecheap:


Risk Management Team
Feb 15 (1 day ago)

Hello Michael,

Thank you for getting back to us. Please accept our apologies for the delay in replying.

It has come to our attention that you have not transferred all your services to another company yet.

This is our ***final*** notice that you need to transfer out your domain names until EOD Monday, February 19.

Thank you for understanding.

------------------
Regards,
Julia Gaivoronska
CFC Shift Leader
Risk Management
Namecheap, Inc.

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