[registrars] Payments for multi year registrations.

["Robert F. Connelly" <BobC@xxxxxxxxxxxxxxx>]

Dear Members:

Those of us who were on the ill fated "Code of Conduct Task Force" felt that there should be a requirement that registrars taking multi year registrations should pay the registry immediately for the full registration paid for by the registrant.

Over the years, we have had some vigorous debates over this issue in the RC meetings.  To me, it was analogous  to taking out a "twenty pay year" life insurance policy and paying the broker for the first ten years -- with the broker paying the insurance company a year at a time.

When we had a run of five and ten year fraudulent registrations a couple of years ago, I was able to see the point of putting through the first year registration and waiting long enough for the chances of a Chargeback to elapse before paying for the full contract.

I can see two incentives for delaying payments beyond the chargeback issue,  1. building cash flow and 2. the expectation that registry fees would go down with time.  I certainly had expected them to do so.  Those of us in Core thought the six dollar fee to Verisign was very excessive.  

However, not only have the registry fees *not* gone down (except .net), they have gone up.  In addition, a very hefty ICANN fee has been added.  Registrars holding back on full payments for multi year registrations will be hit with a shortfall at some point.  Since the RegisterFly.com problem, we can all see the risks of building cash flow by such methods.  Some day there will be a day of reckoning.

Regards, BobC