Editing Backorder (section)

== How do Backorders work? ==

Resellers have access to lists of domains that are about to be released in the following hours, but Backorders for any domain can be submitted at any time. Resellers can place Backorders for currently registered domains in supported TLDs via the web-interface or through the API. 

These Backorders remain dormant in the system until the requested domain is scheduled to be deleted by the Registry. Backorders in this condition have the status REQUESTED in the system.

Once a release date for the domain has been determined, a '''Finalization Date''' is calculated by the system. This is the deadline until which new orders for the domain are accepted by the system. This is also the deadline to cancel existing Backorders. Reseller can check the Finalization Date of a specific domain by checking the pending delete lists or through the Backorder search function. This information is also provided by the system when querying existing Backorders.

3 days before the Finalization Date, the Backorder system will lock the funds necessary to cover the cost of the Backorder in the Reseller's account, according to the listed price for the specific Reseller's tier. Once funds have been secured, the status of the order turns to "ACTIVE".

If the Reseller account does not hold enough funds to cover the cost of the Backorder, the system will keep retrying until the Finalization date.

Only orders for which we were able to secure funds before the finalization date will be considered valid. Once the finalization date has passed, these orders will have the status "PROCESSING" in the system. The system will only attempt to register domains for which at least one valid order exists. Also, in case our system catches a domain for which multiple valid orders have been received, only those customers with valid orders will be invited to the auction.

The lock on the funds in the deposit is released shortly after the Backorders are processed and the system has attempted to register the domain. 

In case the system fails to register the domain, no charges are applied to the Reseller account.

In case of success, the next step will depend on the number of valid orders received for that domain. In case of a single valid order, the system will finalize the charge of the amount that was locked for the Backorder in the Reseller's account. In case of multiple valid orders, a [[#Auctions|private auction]] will take place among the customers that had submitted those orders.



=== Pricing and Billing processes ===

Backordered domains like all objects in the system have a price class associated with them. 

Pricing information for each extension available for Backorder can be obtained via the web-interface or the API. Different discount levels apply to Backorders depending on each Reseller's tier. Queries via the web-interface/API will return the final discounted price for the tier the Reseller submitting the query belongs to.

The following values are returned (where "TLD" is replaced by the actual TLD, e.g. COM or SE):

* PRICE_CLASS_DOMAIN_TLD_BACKORDER_APPLICATION  
* PRICE_CLASS_DOMAIN_TLD_BACKORDER_CURRENCY  
* PRICE_CLASS_DOMAIN_TLD_BACKORDER_DEPOSIT 


For TLDs with Premium tiers, the following values are returned for each premium class:

* PRICE_CLASS_DOMAIN_PREMIUM_TLD_A_BACKORDER_APPLICATION
* PRICE_CLASS_DOMAIN_PREMIUM_TLD_A_BACKORDER_CURRENCY
* PRICE_CLASS_DOMAIN_PREMIUM_TLD_A_BACKORDER_DEPOSIT


The CURRENCY relation returns the currency in which successful backorders will be charged. If this relation in not defined, then the system will use the standard currency for regular domain registrations in the respective class (PRICE_CLASS_DOMAIN_TLD_CURRENCY). If a standard currency for that extension is not defined then the active currency set in the Reseller account will be used.  

The DEPOSIT relation returns the amount that will be reserved in the Reseller's account 3 days before the Finalization Date to guarantee the Backorder. The reserve on the DEPOSIT amount is lifted shortly after the Backorder has been processed and the system has attempted to register the domain object of the Backorder. Please note that only Backorders for which a deposit could be secured by the Finalization Date will be considered valid and processed.

The APPLICATION relation returns the amount that will be charged to the Reseller's account in case the Backorder completes successfully. In case of single Backorders, this amount is charged right after the domain is caught by the Backorder system and the domain is then placed in the Reseller's account. In case of multiple valid Backorders for the same domain, the APPLICATION amount will be charged to the Reseller that submitted the Backorder for the customer that won the auction, once customer has paid the auction price to the Auction provider. The domain is then placed in the Reseller's account and its ownership is transferred to the customer that submitted the Backorder.



=== Important things to remember ===

* Backorder applications with incomplete domain contact handles will show  with a status INCOMPLETE (contact handles can be created by navigating to MANAGE PRODUCTS > CONTACT ADMIN). These orders will NOT be processed unless all required information has been provided by the Finalization Date at the latest.

* Please ensure account balances have enough funds to secure deposits for all backorders expiring within the three day window. The status of currently locked deposits is displayed in the upper right corner as "Reserved Deposits". Backorder applications for which a deposit could not be secured due to insufficient funds in the Reseller account will display a REQUESTED or INACTIVE status. These orders will NOT be processed unless a deposit can be secured by the Finalization Date at the latest. 

* Funds locked to cover the deposit for a Backorder are not available to cover the cost of other operations. You should always ensure your account holds enough funds to cover both upcoming Backorders and any other operation, so that new registrations, transfers and renewals do not fail due to lack of funds in your account.


=== Possible scenarios ===

The image below shows the possible outcomes of Backorders processing, and the statuses that Backorders have in our system in the various processing phases.

[[File:Backorder-order-processing.png]]