> I just spoke to a new hosting client about his domain registrar and
> I'm not sure if what they are doing is even legal or contravenes
> CIRA's rules.

I can't speak for the legal aspect; however, the registrar in question
most likely has it in the 'fine print'. This specific issue came up with
the original CIRA board.

CIRA decided this is a business model just like giving a domain name away
for free for hosting with a company. The incentive of course is the
registrar is making money on holding the funds.

> The registrar apparantly accepts payment for multiple domain years,
> and yet, does not actually pay CIRA for them.  My client paid them for
> 5 years and I noticed that his expiry date showed Dec. 2001.  I asked
> him about this and when he contacted the registrar, he was told that
> they had a problem with people registering for multiple years and then
> transferring their domain elsewhere...therefore they only register one
> year at a time and the money is held in trust in the meantime.  My
> first thought was what if they went out of business?

Exactly. Or if they want to transfer the domain your client looses
whatever he paid for. There is a bit of buyer beware here though. Your
client really should have read the fine print. Don't get me wrong. I never
read them either; however, it is clearly stated in there.

> I know I would not be comfortable dealing with a registrar who did
> this, but it may be common practice for all I know.

It is actually very common.

> The other thing that irked my client was that they openly pass
> along the credit card fees.  They advertise the price as $x.xx but
> when you are billed, they tack the 4% credit card fee on top!  I
> know that is against my credit card merchant agreement.  Makes me
> wonder.  Needless to say, even though I charge $10 more to register
> domains than this company, my client is using us to register them
> from now on!

Also in their fine print.

>
> Curious to hear what everyone else thinks of these business
> practices.  I also apologize if this is received more than once, I
> had trouble sending.

Thats the key. Offer better service and people will slowly move towards
you.

Regards,

        Paul


---
Paul Andersen (InterNIC:PA137)          [EMAIL PROTECTED]
E-Gate Communications Inc.              T: +1 (416) 447-7700x23

"The Trouble with doing anything right the first time is that nobody
appreciates how difficult it was." - NANOG


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