First of all, let me just say that sure, I understand why some of you think it’s funny that an email about a 2.5% fee being added starts with the text ‘We have some exciting news to share!’ 🙂

But leaving that aspect aside, the changes actually do represent great news for a lot of domainers.

First of all, let’s see what the announcement was about in the first place:

1) PayPal and Alipay are being added as payment methods

2) The maximum payment amount for credit card payments is being increased from $2,500 to $5,000 (the $5,000 amount will also be the maximum for PayPal and Alipay payments)

Let me just say that for a lot of domainers, especially non-US domainers, these changes represent amazing news.

Why?

Simply because paying for a domain *QUICKLY* is a lot easier for them now because they have two new payment methods to choose from as well as a limit that’s been doubled for credit card payments.

Some of you, especially those who live in the US or in other developed countries, might be wondering:

Can’t non-US domainers simply pay via wire transfer, what’s the big deal?

Well, if you live in the US or in another developed country, it really isn’t that big of a deal.

Even in my country, international wire payments to the US for example are relatively quick and hassle-free.

However, I had to wait *weeks* for a wire from China to arrive due to all sorts of issues.

And when I was on the other side of the fence and had to send a wire payment to someone from India, the same thing happened: I think it took close to 3 weeks until the recipient actually got the money.

Therefore, it’s easy to understand why a lot of domainers will be happy about these changes, especially those who turn over inventory quickly. Reseller market flippers, for example.

But why did they add a 2.5% fee for PayPal and Alipay?

Well, I’ve never used Alipay before and therefore can’t comment on their fee structure but PayPal’s fees are huge and as such, that 2.5% charge simply covers the PayPal fee for the most part. NameJet isn’t going to pocket those 2.5%, that’s for sure.

But why add 2.5% for credit card payments as well, which were previously available? To answer this question, let’s ask ourselves: why did they limit payments to $2,500 in the first place?

The answer is simple: chargeback fraud risk.

Wire payments are a LOT safer for the recipients, whereas with credit card payments, senders can charge back the money they sent fraudulently and this obviously adds another layer of risk for the recipient, in our case NameJet. They implemented the $2,500 cap to limit their losses and by doubling that limit, they do need some kind of a safety cushion, which I assume explains the new 2.5% fee. The same principle applies to PayPal payments funded through the PayPal’s user credit card, same chargeback risk. Payments made through a person’s PayPal balance are less tricky in that respect but still, it isn’t hard to understand that these two changes come with increased risks for NJ.

Just wanted to share my two cents on this matter.

So, are these changes good news for YOU?

Well, it depends.

If you live in the US or in another developed country and weren’t in any way bothered by the lack of alternatives to cc and wire payments, it’s probably bad news because on the one hand, you’re not getting features of interest and on the other hand, the life of quite a few competitors (who live in less developed countries) has been made easier.

If however you live in a less developed country and sending wire payments is a royal pain in the you know what, these changes represent amazing rather than just good news.

So after drawing the line, do the pros outweigh the cons?

Well, given the huge volume of Chinese buying on NameJet and the fact that these changes have been requested by non-Chinese NJ users as well for a long time, my best guess is that yes, the pros tend to outweigh the cons at this point.