Namecheap is taking an additional step to help prevent abuse in its Namecheap Market. New users who wish to bid on auctions in the Namecheap Market will be required to pre-fund their accounts with $100. This requirement is an effort to authenticate auction participants to combat auction fraud. Most current users won’t be impacted by this change.
Here’s what Namecheap shared with customers about this policy change:
“The account fund requirement is part of our updated bidder authentication process. By having new users add a minimum of $100 to their account funds, we can ensure that only verified bidders are participating in our Auctions. Preloaded funds help to prevent instances of a bidder winning an auction and then failing to make the required payment.
In addition to new users, select current users will also be required to top up their accounts to maintain a minimum balance of $100. Any funds uploaded to a Namecheap account can be applied in Auction bids.”
According to the email I received this morning, most current users won’t be impacted by this requirement nor will they be required to pre-fund their accounts. Some current users may be required to fund their accounts. Here’s who could be required to add funds to their account:
“For verification purposes, if you are a new user, or a current user with only a few purchases, you may get a message asking you to add funds to your account before bidding. In this case, you will need a total balance of $100 in your Namecheap account. This will not affect users with a proven record of several Market Auction wins.
This is an additional step we’ve taken to protect the integrity of our Auctions. As with the $5 annual subscription fee, the $100 account balance minimum helps to ensure that only valid users are participating in these Auctions. The goal is to prevent instances in which a user fails to complete their purchase when they have the winning bid.
Please note that neither a yearly subscription nor a $100 account balance is required to make a purchase from any of our Buy Now listings.”
Godaddy should do this too.