Buying domains from GoDaddy is almost impossible for folks who wishes to pay using an unverified PayPal account. I asked GoDaddy support about this issue and they promptly replied :
Thank you for contacting customer support.
I apologize for the inconvenience, but we are unable to accept Paypal payments from accounts that are not backed by a debit or credit card.
Please let us know if we can help you in any other way.
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Customer Service Representative
General Support: 480-505-8877
Well, I said it’s almost impossible to buy without a credit card, not completely impossible. Here comes in the GoDaddy Gift Cards. All you need to do is find somebody who has a verified PayPal account and a GoDaddy account. Tell them to send you a gift card by filling in your name and email address and the amount at this page : GoDaddy.com Gift Cards. You can always pay your friend later using your unverified PayPal account.
Within 15 minutes, you’ll get an email like this :
Dear Soumik Ghosh,
Congratulations! Someone special just bought you a Go Daddy® Gift Card. Find out who and for how much below… and then start shopping!
Gift Card Code: XXXXXXXXXXXXXXXXXX
Gift Card Balance: $XX.XX
Use your Go Daddy® Gift Card for ANY product or service sold at GoDaddy.com: Domain names, email accounts, Web site builders, secure certificates (SSL) – you name it. Simply place the Gift Card Code (above) in your cart at checkout.
Not sure where to start? Let the Go Daddy Product Advisor help. Just answer a few simple questions and we’ll tell you what products you need to get where you’re going.
Now, whenever you need to pay for something just select “Gift Card” as the payment option; enter the Gift Card code and the Captcha and you’re done!
Note : The only disadvantage of paying with a gift card is that you cannot apply coupon codes to your purchase.