I recently learned about Punycode when I was trying to forward an English character domain name to a Spanish character domain name and it failed in GoDaddy.
” á “
But… every time I tried to forward to SánchezHandyman.com it would say “Invalid Characters”.
After a call to tech support, I learned how Punycode works. I haven’t had the honor to make websites for many foreign individuals so I haven’t come across this issue before. It turns out that foreign characters don’t make good domain names and must be converted to Punycode for the domain registrar to work.