What is Godaddy Dormancy Charge

Godaddy is a leading domain registration and web hosting company, offering various relatable services, but it’s been in the news, where many people are reporting unknown dormancy charges from them mentioned as Godaddy dormancy charges on their credit card. Well, for those who don’t know, dormancy is the fee mainly charged by financial institutions like banks, when there is inactivity in your account, as a service or maintenance charge, but Godadyy also charges this, because there are credits in your account.

A dormancy fee can be understood as a charge that some financial institutions or service providers like Godaddy levy on accounts that have been inactive for a certain period of time. This period of inactivity varies among different banks and other service providers but is often for several months to a year. Godaddy has stated in its terms about these charges and may not always send prior notice before levying the charges.

We will understand the charges from Godadyy in this post extensively under what scenarios they would levy them and how you could verify them. If they turn out to be unauthorized or scams, then what shall you do further is also mentioned below, make sure you understand the terms, policies, and the possibilities of yourself falling under the criteria.

What Does Godaddy Dormancy Charge On Credit Card Mean?

GoDaddy’s dormancy charge is a fee that is applied to your account if you have In-Store Credits that you have not been using for any service or fee for 12 consecutive months.

Once the credits are deemed dormant, GoDaddy will start deducting a monthly fee, which is the lesser of $25 or the total amount of your remaining In-Store Credits, until your credits are used or depleted. Godadyy levies this charge to help themselves manage inactive accounts and covers the cost of maintaining them.

What Are In-Store Credits?

If you purchased domains with Godaddy, you must have Instore credits and you must understand that these credits in your GoDaddy account could come from refunds, promotions, or other forms of credit provided by GoDaddy. You can use these credits to pay for GoDaddy services or fees.

Dormancy Criteria

GoDaddy considers In-Store Credits to be dormant if:

1. Age: The credits are 12 months old (one year).
2. Inactivity: The credits are unused or have not been used to pay for any service or fee within those 12 months.

Dormancy Fee Application

If your In-Store Credits fall under the dormancy criteria (both 12 months old and inactive), GoDaddy will then start applying a dormancy fee.

1. Amount of Dormancy Fee: The dormancy fee is the lesser of:
   • $25.00
   • The total amount of In-Store Credits available in your account on the date the dormancy fee is applied
2. Frequency: Godaddy generally applies the dormancy fee monthly which simply implies that every month, GoDaddy will deduct the fee from your In-Store Credits as long as the credits remain dormant.
3. No Prior Notice: GoDaddy as per their policy(mentioned below), may apply this fee without giving you prior notice.

Example Scenario

1. Initial Situation:
   • You have $50 in In-Store Credits in your GoDaddy account.
   • You don’t use these credits for any GoDaddy services or fees for 12 months.
2. First Month of Dormancy:
   • After the 12-month period of inactivity, GoDaddy will then consider your credits dormant.
   • They apply a dormancy fee.
   • Since $25 is less than your total credits ($50), they deduct $25.
   • Your remaining balance: $50 – $25 = $25.
3. Second Month of Dormancy:
   • Another month closes, and you still haven’t used the credits.
   • They apply another dormancy fee.
   • Since $25 is now equal to your total credits ($25), they deduct $25.
   • Your remaining balance: $25 – $25 = $0.
4. After Depletion:
   • After the n-Store Credits reach $0, no further dormancy fees will be applied because there are no more credits to deduct from.

What Does Godaddy Dormancy Charge On Credit Card Indicate? 

Dormancy charges from Godaddy simply indicate charges for your inactive account with Godaddy, try reading their policy mentioned below;

“Please be advised that if a customer has an outstanding account balance (a credit positive balance) whether in In-Store Credits, a Good as Gold Account or otherwise, for three (3) years or more for any reason, then GoDaddy shall turn over such account balance to the applicable U.S. state in accordance with state law. You acknowledge and agree that we will deem In-Store Credits dormant if they are both 12 months old and have not been used to pay for a Service or fee. In the case of dormant In-Store Credits, GoDaddy may, as permitted by law, withhold a monthly dormancy charge from the available In-Store Credits in an amount equal to the lesser of $25.00 or the total In-Store Credit available on the date of the dormancy charge. If there are no In-Store Credits available we will not apply further dormancy charges. We may apply the dormancy charge to In-Store Credits without prior notice to you.”

Based on the above-mentioned terms from GoDaddy, below is an explanation of their dormancy fee and the scenarios in which they will apply it;

Explanation of GoDaddy’s Dormancy Charge

1. Inactivity Period: GoDaddy considers In-Store Credits dormant if they are both:
   • 12 months old (one year)
   • Have not been used to pay for a service or fee within those 12 months
2. Dormancy Fee: For In-Store Credits that meet the dormancy criteria, GoDaddy may then apply a dormancy fee. The dormancy fee will be:
   • The lesser of $25.00 or the total amount of your In-Store Credits present on the date the dormancy charge is applied
3. Monthly Fee: The dormancy fee is applied on a monthly basis to the dormant your In-Store Credits. This means that each month, if the credits remain unused and dormant, the fee will be deducted until the credits depletes or the account is reactivated.
4. Cessation of Fees: When the In-Store Credits balance reaches zero, no further dormancy charges will be applied. This means that the dormancy fee will not cause a negative balance.
5. No Prior Notice: GoDaddy reserves the right to apply the dormancy charge without prior notice to the account holder.

Possibilities: Why is Godaddy Dormancy Charge On My Credit Card

Our teams of experts have listed some of the probabilities under which GoDaddy will charge you a dormancy fee for In-Store Credits under some specific conditions. Below I have outlined the exact scenarios in which these dormancy charges will be applied;

Scenarios for Godaddy Dormancy Charges

1. In-Store Credits in Your Account:
   • If you have a balance of In-Store Credits in your GoDaddy account. These credits could have been provided as refunds, promotional credits, or other forms of credit from GoDaddy.
2. 12 Months of Inactivity:
   • If the In-Store Credits remain unused or you don’t use them to pay for any GoDaddy service or fee for a consecutive 12-month period. In other words, there is no activity or utilization of these credits for one year.

Dormancy Fee Application

If the above conditions are observed, the following will happen:

1. First Month After 12 Months of Inactivity:
   • Fee Imposed: GoDaddy will then start imposing a dormancy fee on your In-Store Credits.
   • Amount: The fee will be the lesser of $25.00 or the total amount of your In-Store Credits available at that time.
   • Deduction: The dormancy fee will be deducted from your In-Store Credits balance.
2. Subsequent Months:
   • Continued Charges: Each month, if the In-Store Credits remain unused, GoDaddy will continue to deduct the dormancy fee.
   • Amount: Again, the fee each month will be the lesser of $25.00 or the remaining balance of your In-Store Credits.
   • No Prior Notice: These deductions may as per the policy happen without prior notice to you.

Example Scenarios

1. Example 1: Small Balance of In-Store Credits:
   • You have $20 in In-Store Credits.
   • You don’t use these credits for any GoDaddy services for 12 months.
   • GoDaddy will then impose a dormancy fee of $20 (since it is less than $25).
   • Your balance becomes $0 after the first dormancy fee deduction.
   • No further dormancy fees will be applied since the balance is now $0.

2. Example 2: Larger Balance of In-Store Credits:
   • You have $100 in In-Store Credits.
   • You don’t use these credits for any GoDaddy services for 12 months.
   • GoDaddy will then impose a dormancy fee of $25 (since it is less than the total balance).
   • Your balance becomes $75 after the first dormancy fee deduction.
   • If even the next month passes without activity, GoDaddy will then impose another $25 dormancy fee.
   • Your balance becomes $50 after the second deduction.
   • This process will continue month after month until the credits are either used or depleted.

Escheatment (Turning Over to State)

If a customer has an outstanding balance (e.g., In-Store Credits) for three years or more:

1. State Law Compliance: GoDaddy will turn over the balance to the applicable U.S. state, as required by state law. This process is known as escheatment.
2. Outstanding Balance: This applies to any positive balance in your account, not just dormant In-Store Credits.

Our research does also believe that these dormancy charges could be exploited in a scam. Below are the reasons to believe and how it might happen;

1. Phishing Attack: Scammers usually send fake emails or messages impersonating from GoDaddy and will pretend to inform customers of supposed In-Store Credits and urging them to log in to a fraudulent website to manage their account. These phishing sites are designed to record the customer’s login credentials.
2. Unauthorized Access: Using the stolen credentials, scammers will then access the customer’s genuine GoDaddy account and make changes or initiate transactions, quite potentially depleting any of your actual credits or even adding unauthorized services.
3. Fake Charges: The scammers, to keep you wondering, might then create fake notifications or statements which will show up as dormancy charges, misleading you into thinking these are legitimate fees from GoDaddy when, in reality, the scammers are siphoning funds or personal information.

How Could Godaddy Dormancy Charge Appear On Credit Cards?

You might have noticed sometimes that a same vendor could apply charge in many different ways and This depends upon the merchant, type of transaction, services used, location, and the payment processing method used;

• GODADDY DORM FEE 1234****5678 SCOTTSDALE, AZ POS
• GODADDY CRDT CHARGE 2345****6789 PHOENIX, AZ POS
• GODADDY INACT FEE 3456****7890 TEMPE, AZ POS
• GODADDY DORM CHARGE 1234****5678 SCOTTSDALE, AZ WEB
• GODADDY CREDIT FEE 2345****6789 PHOENIX, AZ ONLINE
• GODADDY INACTIVITY 3456****7890 TEMPE, AZ ECOM
• GODADDY MAINTENANCE 4567****8901 MESA, AZ WEB
• GODADDY SERVICE FEE 5678****9012 GLENDALE, AZ NET
• GODADDY ACCOUNT FEE 6789****0123 CHANDLER, AZ ONLINE
• GODADDY DORMANT 7890****1234 GILBERT, AZ ECOM
• GODADDY NONUSE CHRG 8901****2345 PARADISE VALLEY, AZ WEB
• GODADDY INACTIVE 9012****3456 TEMPE, AZ NET
• GODADDY FEE 0123****4567 SCOTTSDALE, AZ ONLINE
• GODADDY CHARGE 1234****6789 PHOENIX, AZ ECOM
• GODADDY CREDITS FEE 2345****7890 MESA, AZ WEB
• GODADDY INACT CHARGE 3456****8901 GLENDALE, AZ NET
• GODADDY MAINT FEE 4567****9012 CHANDLER, AZ ONLINE
• GODADDY SERV FEE 5678****0123 GILBERT, AZ ECOM
• GODADDY ACC CHARGE 6789****1234 SCOTTSDALE, AZ WEB
• GODADDY DORMANT FEE 7890****2345 PHOENIX, AZ ONLINE
• GODADDY NONUSE FEE 8901****3456 TEMPE, AZ NET
• GODADDY CRDT CHARGE 9012****4567 MESA, AZ ECOM
• GODADDY FEES 0123****5678 GLENDALE, AZ WEB
• GODADDY MAINT FEE 4567****8901 MESA, AZ POS
• GODADDY SERVICE 5678****9012 GLENDALE, AZ POS
• GODADDY CREDIT FEE 6789****0123 CHANDLER, AZ POS
• GODADDY FEE 7890****1234 GILBERT, AZ POS
• GODADDY DOM CHARGE 8901****2345 PARADISE VALLEY, AZ POS
• GODADDY ACC FEE 9012****3456 TEMPE, AZ POS
• GODADDY NONUSE 0123****4567 SCOTTSDALE, AZ POS

Avoiding Dormancy Fees

You can avoid dormancy charges from Godaddy, to avoid dormancy fees;

1. Use Your Credits: Make sure to periodically utilize your In-Store Credits to pay for GoDaddy services or fees. This will reset the inactivity period.
2. Monitor Account Activity: Always make sure that you track your credits and account activity. Logging in and managing your services always help prevent credits from becoming dormant.

How To Verify The Legitimacy Of Godaddy Dormancy Charges?

Verifying Charges

1. Check Official Communication: Always verify if there is any notification about the charge and if it’s from an official GoDaddy email address or contact method. Closely check for signs of phishing, such as misspellings, generic greetings, and suspicious links.
2. Log In Directly: Instead of clicking on links in an email you can always type in the GoDaddy URL to visit their browser and log in to your account to look for any notifications or details about the dormancy charges.
3. Review Account Activity: Review your account’s transaction history and check for any credits, fees, or charges applied. Search if the dormancy charges are listed there and try matching the details provided in the communication.
4. Contact Customer Support: If you are still uncertain about any charges, contact GoDaddy customer support directly through their official website or phone number. They shall confirm if the charges are legitimate.

Addressing Fake Charges

1. Report Phishing: If you have received a suspicious email immediately report it to GoDaddy’s security team. Make sure that you never click on any links or provide any personal information.
2. Change Passwords: If you suspect your account has been compromised, immediately change your GoDaddy account password and any other accounts with the same password.
3. Enable Two-Factor Authentication (2FA): Make sure to add an extra layer of security to your GoDaddy account by enabling 2FA, as this always requires a second form of verification apart from your password.
4. Monitor Your Accounts: Ensure to regularly monitor your account and closely look for any unusual activity. Also, check your bank and credit card statements for unauthorized transactions.
5. Dispute Unauthorized Charges: If you identify any unauthorized or fake charges, contact GoDaddy and your bank or credit card issuer to dispute the charges. You shall request them for card freeze and replace it with a new one.
6. Security Checkup: Perform a security check-up by ensuring the antivirus software on your device is up to date and also scan for malware that could have compromised your account.

Conclusion

Scammers have various methods to steal your information and then process it with descriptions stolen from various known names like Godaddy. It’s not only Godaddy, NordVPN after receiving various complaints of unknown charges from them, addressed the masses by forwarding safety measures and a guide on how to spot duplicate or fake ones.

Scammers are highly educated and qualified and know various ways by which companies charge their customers. They try to use the exact details of information to put on your records, but experts always have ways to identify them, but again they are no less than experts, you have to stay alert, prevention is way better than cure.

Frequently Asked Questions

Also Read – What is On Inc Credit Card Charge