I was thinking about transferring my domains to RegisterFly but a friend of mine send me an excerpt from RegisterFly Payment Policy:
"In the event of a charge back by a credit card company (or similar action by another payment provider allowed by us) or other non-payment by you in connection with your payment of the applicable service or renewal fee, you acknowledge and agree that the Service for which such fee has not been paid may be suspended, canceled or terminated, in RegisterFly.com's sole discretion, or, in the case of a domain name, transferred to RegisterFly.com as the entity that has paid the applicable fee to the registry. In addition, we reserve all rights regarding such domain name registration including, without limitation, the right to make the domain name registration available to other parties for purchase. We will reinstate any such Service solely at our discretion, and subject to our receipt of the applicable Service or renewal fee and our then-current reinstatement fee."
I'm really scared by this statement. What do you think about it? Is RegisterFly a serious company?
Short version: If you do a chargeback or reverse payment they have cause to take the names backs and put them back on the market. This is similiar to Godaddy, enom and most registrars. There is a lot of fraud in the domain business so they are protecting their interests.
here is another scaring article in the RegisterFly ToS:
"5. Transfer to another Registrar:
...You agree to provide authorization to Registerfly.com for the transfer of the domain name to another registrar and agree to pay any and all fees that may be charged by Registerfly.com to effect the transfer..."
Does RegisterFly charge his customers when they want to transfer the domain to another registar?