The easiest way to think about a backorder is that you are placing an order to have an chance to own that domain if the current registrant allows it to expire. Take John.com for example. With a backorder for that domain, I am holding my place if the current owner decides to let the domain go. What my backorder does is give me a chance to get 'the drop'. When domains with backorders against them are deleted by the registry, those back orders all have a chance to be the next owner of the domain.
If the current owner of a domain chooses not to renew the domain, it will be deleted by the registry 77 days after the expiration date. If you are the one Name.com customer with a backorder on that domain, then if Name.com wins the drop, you will receive notification that you are the new owner of that domain.
Any backorders you place will stay in our system until one of three things happen.
1) You cancel the backorder. In that case the amount would be refunded to Account Credit, if you wish to have the amount refunded to the original form of payment, we can do that as well.
2) The domain is deleted and you do not win the drop. The same refund conditions apply as above.
3) The domain is deleted and you win the drop. In that case the domain is entered into your account and we keep the backorder fees.
If you had placed a backorder and wish to cancel it you can do so from within your Name.com account. I have included instructions on how to for your reference.
1.) Log into your Name.com account and click the Account icon at the top of the screen
2.) Click on the link entitled Domain Nabber Management on the right hand side of the screen
3.) To the right of your backorder it will say 'Cancel' which will then initiate the refund process of that backorder.
Typically if the backorder fails, the refund is processed within the next 1-3 business days. Usually sooner, rather than later.