Will the security payment we paid into an account with Afilias be used for processing registrations, or will we be invoiced each month?

The amount of the payment security deposited in the Afilias bank account will determine the amount of registrations that can be processed for a Registrar — a credit limit, if you will.

As each successful registration is processed, the credit limit is reduced. At the end of the month, an invoice is mailed to the Registrar for the prior month's processing. Payment of the invoice replenishes the credit limit.

In the Registrar Financial Information Form, each Registrar establishes a Notification Threshold percentage. Once that threshold is reached, an email will be sent to your billing contact notifying them that the account balance has gone below the threshold and that additional payment security will be required. In this instance you will not receive an statement. However, the month-end statement would reflect any interim payment security received.