Go Daddy added a new bidder verification process for Go Daddy auctions using Paypal. After many complaints from many users, including my own, Go Daddy implemented this new system. But is it enough?

Go Daddy introduced the verification process to protect both buyers and sellers:

Now, the domain aftermarket experience promises to be even better. That’s because we just introduced a new bidder verification process to further protect both buyers and sellers against fraudulent activity. Designed to limit the way unverified bidders can place bids, this revamped process helps to ensure a fair and open marketplace through a two-tier bidder verification practice.

There are two types of auction inventory that will now require verification:

1. Value Priced – These are domain names that have been reacquired by GoDaddy that are now up for auction.
2. Expiry Auctions – These are domain names that have expired and are not renewed by the original owner that are now up for auction.

But what happens with domain auction of up to $1,500? That is 99% of all Go Daddy auction on any given day. I wrote a post suggesting 13 changes that Go Daddy can make to improve the whole auction platform.

I said that there is a need for multiple tier verification system. And it should start from the first $1. And I wrote “Make a credit card bidder verification mandatory: Sorry but paypal is not enough.”. 10 days after the post this new verification process is introduced by Go Daddy which a good step to the right direction but using Paypal not enough.

How will the new bidder verification process affect you?

If you’ve already been using GoDaddy Auctions, chances are you won’t notice a thing. Just log in and continue to bid as you’ve done in the past.

If you’re new to the auctions site, Go Daddy will ask you to verify your account in order to place more than two bids or to bid more than $1,500 total – whichever is reached first. These are the current limits for a Tier 1 auction account, which impact bidding only on our expired and value-priced auctions. Regardless of what tier you fall into, you’ll still be able to make offers or use Buy It Now options. The bidding interface will make it clear where you stand and provide you with an easy path to get verified if necessary. Verified bidders move to Tier 2, which allows you to bid on anything without limits.

GoDaddy Auction Bidder Verification Process

To Complete the Verification Process

In order to be verified, you must provide valid PayPal contact information!

1. When attempting to place a bid from the GoDaddy Auctions page, click the Continue to Review button.
2. On the Review Domains window, click verify your account with PayPal.
3. Enter your first name, last name, and PayPal email address in the window and click Submit.

NOTE: The PayPal account must be a verified account. Not every PayPal account will work. Visit the PayPal Seller Verification FAQs for more information.

1. You will receive a confirmation message that GoDaddy has emailed your PayPal address, OR that the PayPal contact information you’ve provided is not valid and you must enter valid information.

NOTE: Your contact information is validated against PayPal in real-time.

1. Click on the secure link included in the message to your PayPal email address to complete verification.
2. You will be redirected to your GoDaddy account without having to log in, and there will no longer be bid limitations on your account.