advice How safe is payments through PayPal

TerriJ said:

People can do chargebacks or refunds on you... and PP has been known to side with buyers not matter how obvious it is that they're defrauding or scamming you.
This happened to me on eBay (non-domain related sale. Ebay refused to refund this person so they went to PP and made up a completely different reason to receive a refund. Also, I prematurely gave positive feedback and they gave a negative! I complained but nothing was done.I know never to leave positive feedback first now on eBay, as a seller.)

Back to domaining:
I'd only use Paypal for sales under $100 or if you absolutely trust the person you're dealing with.

There are many threads discussing this topic on this forum. (Use the search function on the top right)

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Justin Matmor said:

If you pay for a domain using paypal and the seller doesn't deliver the domain you have no way of receiving a refund from paypal because domains are considered non tangible purchases.

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aramyus said:

shortly said: paypal is not-safe-at-all for a seller. A bad faith buyer can easily get refund and keep your domain.

Paypal is one of the worst company to work with because they have rigid procedures and they don't read your emails unless fraud is involved (they primarily use robots).

I recomment against using paypal for anything strategic.

That said, for small payments, they are ok. The rule of thumb is: can you afford to loose the money ?

You need to do your own due dilligence and decide if your buyer is of good faith or not. You also need to have a way to dialog with him (it's unbelivable how many transactions get into trouble simply because your mail was intercepted by some spam filter and the other party does not even know how to inspect a spam folder)

I've read a trick I never tried: in addition to sending the domain codes to your buyer, send him a CD with the same information. You'll get a proof of shipment and it makes your paypal case much stronger in case of buyer's bad faith.

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deez007 said:

It depends on a few factors....

I mean if it's a large transaction then obviously PP is not at all ideal.

if it's not a large transaction then some of the factors to consider is the age of your own PP account?, is your account in good standing with PP? Have you had many disputes lodged against you?

My PP account is in good order and in the rare case of a dispute then it's smashed out quickly and always in my favour. This is mainly because of the age of my account and the account being in good standing BUT a Paypal representative also said that the fact that I always send the buyer an Paypal generated invoice and clearly stipulate the terms and conditions of the sale in the Invoice notes area, helps a lot when it comes to disputes. This is more or less what I say in the invoice notes area:

Terms and Condition Of Sale
This transaction is for DOMAINNAME.COM - Currently registered at: (Godaddy) under account number: (12345562) in my name: (My Name). The domain name will be transferred to: (Godaddy) Account number: (4567879) linked to this email address: ([email protected]). The transfer will be initiated immediately after payment has been received. Please note that once the transfer has been initiated, no refunds or chargebacks will be permitted. Proceeding with payment confirms that you have accepted the terms and conditions stipulated above.

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domaintribe said:

Thanks for the value ble info......... 'paypal generated invoice' sounds better bet.. i didnt know about this PP generated invoice.

Can you Kindly tell me , if this 'Paypal Invoice', is it had to be generated before the transaction taking place? or after receiving the funds and before pushing the domain to them , or after all the transactions are completed??? sorry, i am a newbie with regards to paypal and domain sales, so not much knowledge in this.

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deez007 said:

No Probs mate.....basically you go into your Paypal account and generate an invoice from within you Paypal account. This is then send via Paypal to your Buyer. He/She will then make payment on the Paypal invoice... so it's done before any transaction takes place... it's an invoice requesting payment... hope that makes sense?

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Kuffy said:

I don't know why people still use PayPal, as payment is only a loan for six months, as either the buyer or PayPal can decide to take it back, They can even run it back a level, so PP could have invented an imagined dodgy transaction for your buyer's buyer.

Somewhere I have copy a copy of the court case where they were ordered to pay $600million for the misuse of clients funds - it was this case that caused them to move their head office out of the US.

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Kuffy said:

For some reason bad services and suppliers rise to the top. It's all based on marketing. Look at the list
Microsoft
Tesco (UK supermrket chain)
VHS recording technology
Seagate hard drives
Several of the banks.

I'm sure you can add a load more.

It can come from aquisitions - for example Seagate bought Conner peripherals. Suppression of bad information - PayPal. Fortunately it doesn't always work - Trump was elected despite the lies and misinformation that is spread about him.

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ChelseaDott said:

Using Escrow will be better I guess.

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