Transfer fee loophole - Registrars are charging for a service they aren't fulfilling

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rodash

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There seems to be a loophole in that ICANN is allowing registrars to charge a fee for attempting to transfer domains, as opposed to actually transferring them.

Two days ago I transferred 80 names from BulkRegister to GoDaddy. I checked all 80 names for 60-day ICANN transfer restrictions but regrettably missed one name. The result: I got an email from GoDaddy saying it couldn't transfer the name. However, a fee had already being charged and after querying whether I would get a refund I was told that I may not get one because "As some of our services are non-refundable, this does not guarantee that the refund will be given."

The same thing happened with Enom some months ago. No domain transfer but my transfer fee still stood.

I'm amazed. Registrars can so easily check among themselves whether a domain has transfer restrictions imposed on it yet they don't. They then charge you for a service that they know may not be fulfilled. There is no reason why that check can't be carried out before a transfer fee is imposed. In fact, ICANN should make it mandatory that a pre-transfer check is carried out.

This is easy money for registrars and apart from being unethical you wonder whether it is in fact legal.

I've written to ICANN about this and requested them to close this loophole:

One of the most disturbing things I have come across in recent months is that some registrars are billing people for a service they aren't fulfilling. I'm referring to the transfer of domain names. I've recently had a situation whereby I've tried to bulk transfer names through Enom and GoDaddy and on both occasions some of the transfers weren't carried out due to ICANN 60-day period restrictions. The transfer fees, however, were charged. I believe that is inappropriate when you consider that a service hasn't been provided. Domain names are timestamped by registrars and there is no reason why the 60-day restriction can't be checked prior to transfers. So why are some registrars going through the motions of attempting to transfer the domain when they know there is a likelihood it can't be transferred? The answer is that they are crossing the white line and are taking advantage of an ICANN loophole in a grab for more cash.

I'm requesting that ICANN close this loophole and make it mandatory for registrars to amend their software so a 60-day check is applied before a transfer fee is charged.

Can you please respond and advise if you will be taking action on this matter.


If anyone else has experienced this happening and would like to see something done about it, please email ICANN at [email protected] and complain. This practice will remain in place until enough people complain and ICANN is compelled to do something.


UPDATE

Shortly before posting this message I complained to Support at GoDaddy about there being a question mark over refunds on domain transfers that don't go through. Since then GoDaddy have got back to me and said "I apologize for the miscommunication. Domain transfers are fully refundable.'

Is this because I complained and said I was putting my next bulk transfer on hold? What would have happened if I hadn't complained and simply accepted that I'd lost my transfer fee? Judging by the first Support email it seems unlikely I would have received a refund.

Does anyone know for sure what the situation is with ICANN in regards to transfer fees being refunded? I still can't see why a restrictions check isn't made by registrars prior to them charging you. That would make more sense. Of course that would put an end to registrars picking up easy money on transfers that don't go through.



.. :)
 
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AfternicAfternic
rodash said:
The result: I got an email from GoDaddy saying it couldn't transfer the name. However, a fee had already being charged and after querying whether I would get a refund I was told that I may not get one because "As some of our services are non-refundable, this does not guarantee that the refund will be given."
Did I read right that Go Daddy charged you a fee for trying to transfer out a
domain name that, unfortunately, is still within their internal 60-day thing? If
so, how much?

As to your question whether registrars can charge a fee for transferring out:

http://icann.org/transfers/dnholder-faq-03nov04.htm

My registrar is charging me a fee to transfer to a new registrar. Is this allowed?

Yes. Registrars are allowed to set their own prices for this service.
If what you say is true, it seems Go Daddy is the only one doing this by far.
 
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The same thing happened to me at Godaddy. I called billing and told them what happened, and they immediately refunded my money, no questions asked. You probably just got a CS rep that was having a bad day, I'd call again if I were you.
 
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Since when have they started charging for transfers period?!?! All the more reason to stick with the people who care anout domainers: Fabulous/eNom/Moniker
 
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they can either keep trying (godaddy has automatically waiting 30 days) or
refund your money. I have done both ways.
 
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