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That was my thoughts too that if they were serious then why wouldn't you wait so long as they had a working email/web site while waiting.
I can envisage genuine reasons for them wanting to use PayPal, there are people out there who use PayPal as their online business account, and for others it allows them to effectively pay for a domain with a credit card.
I too only sell .uk, something I've wondered about is whether Nominet offer any support to Registrars in the case of non-payers/fraud?
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