So, I was ordering a domain name from GoDaddy, and I click the Paypal option expecting to pay with the funds in my verified Canadian account. When I went to purchase the domain, it said it required a CC or debit card to pay. I was logged in at the time. Doesn't this defeat the purpose of paying with Paypal or am I missing something here? Are all domain/host sites like this?
No, it does not defeats the purpose. It does not necessary need to withdraw from your credit card but Godaddy just want to only accept Verified Paypal account holders and checking your credit card would be one way to determining that. Once you verify your credit card, you are free to use your paypal funds to buy through Godaddy. It is nothing really to worry about since in most cases you will need a credit card to verify your paypal account anyways.
As far as i know they require credit card details when you pay through your paypal because if there is not enough funds in your paypal they will debited that funds from your credit card. Someone correct me if i am wrong
I guess you'll need to add one. Well,to make things easier,you can try www.namecheap.com ,they do accept payment from unverified accounts and they are a great registrar.Most of my domains were registered there.
The Credit card verification in this case is done on GoDaddy's end. Basically, Paypal does not provide an option to accept or reject unverified accounts.