Afternic stops accepting PayPal for sales

[aww]

(Afternic) recently received unfortunate news from PayPal. They are changing their policy and limiting the receipt of funds to our PayPal escrow account. This limit is far below what we normally receive in this account. They have other premium accounts which do not include this limit. However, these premium accounts to not include the ability to block the receipt of credit card payments. We cannot accept credit card payments for the purchase of domain names because of the high risk of charge backs.

Effective February 12, we will quit accepting PayPal payments for the purchase of domain names because of this change in PayPal policy. We will still accept PayPal for other Afternic services such as appraisals and listing upgrades. Sellers will still be able to choose escrow disbursement by PayPal. They have not placed limits on our ability to send funds.

 

[g0ldy]

So is bazzar effected?

 

[Bill1]

i think so

 

[inflames]

i think the only reason that pay-pal is doing that because its an ebay company . and they are seeing how much business there are loosing on domain auctions to other sites

 

[webscorpion]

Nice point, inflames

 

[aww]

Actually if you read between the lines on the Afternic annoucement, I *think* they were trying to get away using a personal PayPal account for escrow to save the 3% fees for themselves?

This sounds like positive spin on a PayPal personal account: "ability to block the receipt of credit card payments". It's not an ability, it's a limitation on personal PayPal accounts.

PayPal recently made an annoucement about $1000 per month caps on personal accounts, which is completely fair as they are free. So this timing seems about right. If they keep 3% and lose 3% to PayPal, they'd have to charge 6% which noone in their right mind would accept.

Escrow can be a tricky thing as a regular merchant account could experience chargebacks and leave them in jeapordy.

I think they will have to negotiate with PayPal for a better rate, which PayPal has done recently for the music industry (2.5% + 9 cents, instead of 3% + 30 cents)

 

[billinchina]

Afternic

PayPal is a great tool and Afternic is not dropping PayPal because it is an eBay company. Infact, you can still pay for Membership fees, Appraisals and receive funds for name sales via PayPal.

The Bazaar is not affected because members conduct the transactions themselves and Escrow is seldomly used.

Bill Kerr
IT Specialist
Afternic, Inc.

 

[Jeanco]

Thanks for the info billinchina