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That sounds a bit excessive IMHO. What if the customer in question does not have a fax machine? Many individuals, without a fax machine, buy domain names.
Another thing does not add up. What are they going to do with a photo ID? If you buy from a retail store, I can understand that they want to verify that your name on the credit card is your real name: a photo ID proves that you are the name on the card because the clerk can see you and compare with your photo. But here, it's over the internet. They don't have the person in front of them to verify anything.
Does not make much sense.
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