There is no seller protection with Paypal when intangible goods, like domains, are involved. If you search this forum and Paypal's Seller Protection Policy, you can confirm this.
There is a
good GREAT chance what will happen here is that, after you transfer the domain to the "buyer",...
- the charge will be disputed on paypal.
- Paypal will tell you to provide proof of delivery
- You will provide proof of successful transfer as proof of delivery
- Paypal will reject your proof of delivery because paypal does not take electronic transactions as proof, only tracking #s of actual shipments (and if selling price is over $750 they required signature delivery proof along with the tracking #). You cannot provide either of these since the product sold was an intangible product delivered electronically.
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Here are excerpts from Paypal's Plocies regarding Seller Protection...
Source:
https://www.paypal.com/webapps/mpp/ua/useragreement-full#seller-protection
To be eligible for PayPal’s Seller Protection, you must meet all of the following requirements:
- The primary address for your PayPal account must be in the United States.
- The item must be a physical, tangible good that can be shipped.
- You must ship the item to the shipping address on the transaction details page in your PayPal account for the transaction. If you originally ship the item to the recipient's shipping address on the transaction details page but the item is later redirected to a different address, you will not be eligible for PayPal Seller Protection. We therefore recommend not using a shipping service that is arranged by the buyer, so that you will be able to provide valid proof of shipping and delivery.
- You must respond to PayPal's requests for documentation and other information in a timely manner as requested in our email correspondence with you or in our correspondence with you through the Resolution Center. If you do not respond to PayPal’s request for documentation and other information in the time requested, you may not be eligible for Seller Protection.
- If the sale involves pre-ordered or made-to-order goods, you must ship within the timeframe you specified in the listing. Otherwise, it is recommended that you ship all items within 7 days after receipt of payment.
Item Not Received additional requirements
To be eligible for PayPal’s Seller Protection program for a buyer’s Item Not Received claim, you must meet both the
basic requirements listed above and the additional requirements listed below:
- Where a buyer files a chargeback with the issuer for a card-funded transaction, the payment must be marked “eligible” for PayPal’s Seller Protection on the Transaction Details page.
- You must provide proof of delivery as described below.
Ineligible items and transactions
Your sale
is not eligible for coverage under PayPal’s Seller Protection program if:
- It involves intangible, non-physical, items, including digital goods, and services. Digital goods are delivered and used in an electronic format, like a song delivered online or through a mobile application.
- The buyer claims (either with us or their card issuer) that the item you sent isn’t what was ordered (referred to as a “Significantly Not as Described” claim).
- It involves an item that PayPal determines, in its sole discretion, is a counterfeit item.
- It involves an item that you deliver in person, including in connection with a payment made in your physical store.
- It involves sales that are not processed either through a buyer’s PayPal account or a PayPal guest checkout transaction. For example, if the sale was made using the PayPal Payments Pro/VT product, PayPal business payments or using PayPal Here, then it is not eligible for coverage.
- It involves items equivalent to cash including gift cards.
- It involves a donation.
- It relates to the purchase of a financial product or investment of any kind.
- It involves a payment sent using PayPal’s friends and family functionality.
- It involves a payment made using PayPal Payouts and Mass Pay.
- The item is a vehicle, including, but not limited to a motor vehicle, motorcycle, recreational vehicle, aircraft or boat.
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This is a huge red flag. This "marketplace" listed your domain for sale without your consent. That alone should tell you to proceed with caution if you even proceed at all.
Tell "Kim" that you will gladly sell your domain through an escrow service where buyer pays all escrow fees. I bet "Kim" will never accept this.
