Why does eNom require "pre-funding" an account?

[modalhosting]

I am new to domain name registration. I am wondering what prefunding an account does. Can anyone help?

Thanks,
Daimon

 

[TheOrbit]

It protects them. Domain names are non-refundable. If somebody scams your company by buying a few domain names only to issue a chargeback it goes out of your pfunds and not theirs. Also the more you put into your account the cheaper the domain names can be for you to sell. Think of pre-funding as insurance for them .

 

[modalhosting]

Ok. So it's like an insurance policy. Am I able to recover my "insurance?" Also, are there other alternatives to pre-funding-- so I don't have to purchase their "insurance."

Thank you for your help.

 

[TheOrbit]

I do not know if there is a way to recover your insurance. I believe it is non-refundable from what I remember reading. I used to use enom for my services but gave up. I believe it's just much better if you get ICANN acredited yourself . There is absolutely no alternative to pre-funding unless you become a reseller of a reseller himself who can create an account for you for free.

 

[modalhosting]

Thanks

Thanks Orbit.

I appreciate it.

-Daimon

 

[TheOrbit]

My pleasure as always . I'm starting to build a nice little nest here everybody is so friendly here and polite .

 

[diginode]

Yeah, basically they transfer their risk onto you. You will probably get stuck with that risk.