This AUsome! blog addresses the technical portion of the .au Registry Transformation Project. In today’s post, we address another critical milestone:  enabling registrars to fund their accounts.

We have already written extensively about many technical enhancements, especially in security, that are being put into place as Afilias implements the detailed transition plan approved by auDA.

However, as the old saying goes, if you want to understand how things work, follow the money!

All registrars charge for domain names because registrars must connect to the registry to obtain the names, and registries charge registrars to cover the costs of servicing the name.

Registrars (and therefore registrants) pay for the names in full year increments at the time of purchase.  If I register www.example.com.au today at registrar DDNS, I will pay for a full year of service, and won’t have to pay again until I renew the name a year from today.  If I want the name for 5 years, I can add 4 years to the registration, but will have to pay for the entire period upfront.  Registries work this way because: 1) this avoids the costs of managing “receivables,” improving efficiency; and 2) domain names are inexpensive, so even a 5 year registration is quite affordable.

To ensure adequate funds, registrars maintain an account at each registry (e.g. the .com registry, .org registry , .au, etc.).  As the June transition approaches, it is important that registrars establish an account with Afilias Australia Pty Ltd. so the funds are available to pay for transactions as soon as the new registry opens. If funds are unavailable, transactions cannot proceed.

A few weeks ago, Afilias began accepting funds for registrar accounts. These accounts are directly linked to the registry system so that funds are applied in real time as transactions are processed.  Registrars can check their balances anytime using the “registrar info” command and will know exactly how much is still on deposit. Afilias also provides a daily balance update via email to every registrar.

Information on how to interact with the financial system is available 24x7 in the Registrar Customer Portal (secure log in required).

Have a question or want to suggest a topic for us to cover? Email us at transformationblog@afilias.com.au.

More information on Afilias plc is located at www.afilias.info.