This is the problem with prepaid and low limit credit cards... oftentimes, pre-authorizations will be placed on certain transactions to ensure that the funds are available. If that authorization amount exceeds whatever available credit you might have, or whatever funds you have loaded on the card, it can cause the transaction to be declined, thus causing the merchant (GoDaddy) to think there's something the matter with the card.
Another instance where the same card may have been denied could have been when you had a domain on autorenew, and you didn't have the necessary funds on the card to cover the renewal fee. This happened to me on domain renewals before I got my first credit card when I turned 18.
My advice to you would be to either load some "extra" funds onto the card so that you're always able to cover purchases (up to a reasonable amount), or to get a "real" credit card.
Even if you have no credit history, many banks will let you have one if you put down a deposit for the full amount of the credit limit.
Hope this helps!