Dan.com

opinion DAN.com FAKE BUYERS?

NameSilo
100% MY OPINION based on my conversations

My latest DAN.com "fake buyer" mystery solved. So it turns out my buyer was attempting to pay but more than one of their credit cards failed due to foreign transactions in Netherlands. Dan.com didn't bother to inform me. They told the client to WIRE the funds to their international bank in Netherlands which they were hesitant to do.

So it was not a buyer that never responded as Dan.com said it was a buyer that COULDN'T pay because the way Dan's banking is set up. Dan neglected to inform me of an attempted payment they said the buyer never replied. When I talked to the buyer they said more than one bank credit card failed due to suspected FRAUD and then they were wary to wire to bank in Netherlands plus foreign wires are pain in the ass. So unless they buyer is just DYING to get your domain name they are going to move on.

In this last case the buyer invoice allowed to locate them online and they are now purchasing via Afternic.

Point here is Dan.com doesn't tell you they are TRYING TO PAY and if the buyer doesn't answer phone call from unknown number or open email from unknown sender Dan.com just claims buyer never responded which to me is VERY different than TRIED to pay then got discouraged and moved on.

Once you agree to accept price you are no longer able to message the buyer and they can't message you so Dan.com cuts off any communication that would be beneficial.

I am likely moving away from Dan.com but from now on I am going to try to at least get contact information from the buyer before accepting the offer so i can follow up directly if payment never comes.

Also many of my buyers want to use corporate AMEX cards for the points and the security and Dan.com will apparently never move to allow AMEX.
 
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jim h

Top Contributor
Impact
1,098
It's really a problem. There have been too many defaults in Dan in the past few months.

I hate to say it shakes my confidence because your domain name has to be locked for a week if you park there. At the same time, if other platforms came offers, it's really a pain. Then, you are defaulted by the buyer and lose other customers.You have to work to make up for it. When this happens again and again, you're tired.

This also happens in other platforms of course.

Are there only a few people in this situation? How did everyone deal with it? Just can only wait?
 
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ReallyBigIdea.com

Top Contributor
Impact
1,309
buyer was attempting to pay but more than one of their credit cards failed due to foreign transactions in Netherlands. Dan.com didn't bother to inform me
Thank you for the valuable information. I have sold many domains through Afternic that was parked on dan and didn't realize why do buyers choose Godaddy. Now the mystery solved.
 

karmaco

Top Contributor
Impact
10,452
If they are wary to wire funds they are probably a fake buyer. High percentages of my sales buyer chooses wire because they get a small discount.

Its not DAN’s fault if your buyer doesn’t pass security clearances/checks on multiple cards and then is “scared” to pay in cash. Red flag.

They also could have paid in crypto an option that is not available on Afternic.

Why you guys think its DANs fault you have fake buyers makes no sense. There are fake buyers everywhere.
 
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100% MY OPINION based on my conversations

My latest DAN.com "fake buyer" mystery solved. So it turns out my buyer was attempting to pay but more than one of their credit cards failed due to foreign transactions in Netherlands. Dan.com didn't bother to inform me. They told the client to WIRE the funds to their international bank in Netherlands which they were hesitant to do.

So it was not a buyer that never responded as Dan.com said it was a buyer that COULDN'T pay because the way Dan's banking is set up. Dan neglected to inform me of an attempted payment they said the buyer never replied. When I talked to the buyer they said more than one bank credit card failed due to suspected FRAUD and then they were wary to wire to bank in Netherlands plus foreign wires are pain in the ass. So unless they buyer is just DYING to get your domain name they are going to move on.

In this last case the buyer invoice allowed to locate them online and they are now purchasing via Afternic.

Point here is Dan.com doesn't tell you they are TRYING TO PAY and if the buyer doesn't answer phone call from unknown number or open email from unknown sender Dan.com just claims buyer never responded which to me is VERY different than TRIED to pay then got discouraged and moved on.

Once you agree to accept price you are no longer able to message the buyer and they can't message you so Dan.com cuts off any communication that would be beneficial.

I am likely moving away from Dan.com but from now on I am going to try to at least get contact information from the buyer before accepting the offer so i can follow up directly if payment never comes.

Also many of my buyers want to use corporate AMEX cards for the points and the security and Dan.com will apparently never move to allow AMEX

Thank you for the valuable information. I have sold many domains through Afternic that was parked on dan and didn't realize why do buyers choose Godaddy. Now the mystery solved.
From Dan.com
" Sorry to hear you are leaving.

Of course you have more cancelations at Dan.com than on the other platforms. Our marketplace is significantly differently designed than other marketplaces.

The leads that get canceled you wouldn’t even notice on other platforms ..."

oh ok its a FEATURE not a BUG ... so i get to waste time with your platform that wouldn't waste my time otherwise. Cool.
 
If they are wary to wire funds they are probably a fake buyer. High percentages of my sales buyer chooses wire because they get a small discount.

Its not DAN’s fault if your buyer doesn’t pass security clearances/checks on multiple cards and then is “scared” to pay in cash. Red flag.

They also could have paid in crypto an option that is not available on Afternic.

Why you guys think its DANs fault you have fake buyers makes no sense. There are fake buyers everywhere.
lol. i sell lots of geo service names to small buyers. Once Bank of America or SunTrust declines payment due to potential fraud (which happens all the time on foreign bank transactions) they get spooked. And no these people don't use coinbase or even know what a MetaMask is so forget the crypto. My clients live in real world and they don't like putting their credit card into some place named Dan.com they never heard of - anyway back to getting reamed at GoDaddy - rather pay 20% of something than 10% of ZERO
 

DAN.COM

Domain Marketplace
Dan.com Staff
Impact
4,344
100% MY OPINION based on my conversations

My latest DAN.com "fake buyer" mystery solved. So it turns out my buyer was attempting to pay but more than one of their credit cards failed due to foreign transactions in Netherlands. Dan.com didn't bother to inform me. They told the client to WIRE the funds to their international bank in Netherlands which they were hesitant to do.

So it was not a buyer that never responded as Dan.com said it was a buyer that COULDN'T pay because the way Dan's banking is set up. Dan neglected to inform me of an attempted payment they said the buyer never replied. When I talked to the buyer they said more than one bank credit card failed due to suspected FRAUD and then they were wary to wire to bank in Netherlands plus foreign wires are pain in the ass. So unless they buyer is just DYING to get your domain name they are going to move on.

In this last case the buyer invoice allowed to locate them online and they are now purchasing via Afternic.

Point here is Dan.com doesn't tell you they are TRYING TO PAY and if the buyer doesn't answer phone call from unknown number or open email from unknown sender Dan.com just claims buyer never responded which to me is VERY different than TRIED to pay then got discouraged and moved on.

Once you agree to accept price you are no longer able to message the buyer and they can't message you so Dan.com cuts off any communication that would be beneficial.

I am likely moving away from Dan.com but from now on I am going to try to at least get contact information from the buyer before accepting the offer so i can follow up directly if payment never comes.

Also many of my buyers want to use corporate AMEX cards for the points and the security and Dan.com will apparently never move to allow AMEX.

Hi Aj,

We offer a plethora of payment options including local bank transfer options for buyers.

If a credit card payment fails because the buyer is going through our European CC acquirer and due to us being based in the Netherlands, then any payment from that buyer would fail in any attempt outside of the location they are based from.

If the buyer had informed our team about this, we had informed them about how to remove their card limit for non-internal transactions. This is a basic CC security measure. They also received an email automatically if that's really the case here.

Your feedback almost makes it sound as if Dan wishes to faciliate as little as possible transactions while that goes against the mission of the company. Our business model is also tied to buyer/seller success. The more friction our marketplace introduces, the less commission revenue we make. Our checkout flow is pretty optimized at the moment for conversion.

The feedback from your account manager can indeed be interperted wrong. What your account manager meant was that even though we lower the barrier of entry for buyers to acquire a secondary market domain immediately without any hassle, this also introduces more "tire kickers" to engage with you via the "Make offer" flow. Of course a customer that for some reason cannot pay and doesn't want to communicate with us isn't seen as a non-serious buyer, however, if the Dan team is never informed by the buyer that they have problems with paying then there's not much we can do about that.

Our checkout flow is highly optimized. When a buyer tries to pay with a credit card and it fails, we check the error code and send the buyer a tailored solution for the problem they had. For example, if they had too little funds on the card, we inform them about the actual cause so they can try again.

Kind regards,

Dan
 
Well luckily I was able to locate the person attempting to use your service to buy my name and sell it to them via Afternic. So while your feedback to me was never anything but "we have sent the buyer several notices and left phone calls and they never replied' the ACTUAL facts were that their credit card failed as a foreign transaction and they never heard of "Dan.com" and felt uncomfortable wiring funds or sending Bitcoin to a bank or entity in Netherlands that they had never heard of.

Plethora meaning what ? Credit Card (but not AMEX which is what most American business people love to use since they get reward points and buyer protection) Wire or Crypto - so plethora is 3 of which 1 which likely fail for any large transaction unless the buyer calls their bank before they try to use it - which they wouldn't know to do - and crypto is used by a tiny number of people and what happens once you send crypto? not much of a comfort of ever getting refunded if you feel like you were unhappy with your purchase.

Also my eventual buyer WANTED the domain. Your feedback to me was 1) he never paid and 2)never responded to follow-up which BOTH were inaccurate - he did in fact attempt to pay and he did try to find out why his card declined .

Solution is simple - raise my prices another 10% and move everything back to Afternic.

p.s. when I mentioned this to Laz PRIOR to making any public post his position was this was an isolated incident. In my experience many of my domain buddies have had the exact same experience as I have so this is not as isolated as it seems. Also Laz said Dan processes so many cards per day they don't have time to track down the failed credit card transactions and follow-up on each one.
 
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DAN.COM

Domain Marketplace
Dan.com Staff
Impact
4,344
Well luckily I was able to locate the person attempting to use your service to buy my name and sell it to them via Afternic. So while your feedback to me was never anything but "we have sent the buyer several notices and left phone calls and they never replied' the ACTUAL facts were that their credit card failed as a foreign transaction and they never heard of "Dan.com" and felt uncomfortable wiring funds or sending Bitcoin to a bank or entity in Netherlands that they had never heard of.

Plethora meaning what ? Credit Card (but not AMEX which is what most American business people love to use since they get reward points and buyer protection) Wire or Crypto - so plethora is 3 of which 1 which likely fail for any large transaction unless the buyer calls their bank before they try to use it - which they wouldn't know to do - and crypto is used by a tiny number of people and what happens once you send crypto? not much of a comfort of ever getting refunded if you feel like you were unhappy with your purchase.

Also my eventual buyer WANTED the domain. Your feedback to me was 1) he never paid and 2)never responded to follow-up which BOTH were inaccurate - he did in fact attempt to pay and he did try to find out why his card declined .

Solution is simple - raise my prices another 10% and move everything back to Afternic.

p.s. when I mentioned this to Laz PRIOR to making any public post his position was this was an isolated incident. In my experience many of my domain buddies have had the exact same experience as I have so this is not as isolated as it seems. Also Laz said Dan processes so many cards per day they don't have time to track down the failed credit card transactions and follow-up on each one.

What you're writing here in response doesn't really match with the conversations you've had with our team. We took the time to provide context and feedback but it doesn't seem you're receptive to that. We're happy you found a solution to your problem. All the best with your future sales!
 
What you're writing here in response doesn't really match with the conversations you've had with our team. We took the time to provide context and feedback but it doesn't seem you're receptive to that. We're happy you found a solution to your problem. All the best with your future sales!

I'm sorry are you calling me a liar?
 

Scale Business

Restricted (Market)
Impact
22
What you're writing here in response doesn't really match with the conversations you've had with our team. We took the time to provide context and feedback but it doesn't seem you're receptive to that. We're happy you found a solution to your problem. All the best with your future sales!
I believe charging an extra 2% on credit cards is very bad. Usually, people prefer to pay via cards and when they come to know about an extra 2% amount, many of my buyers cancel the transactions.

It's really so weird to see such activity. Moreover, for whatever the reasons the buyer isn't paying, Dan should communicate us the right message.
 

LaszloSchenk

Dan.com Staff
Impact
1,312
Well luckily I was able to locate the person attempting to use your service to buy my name and sell it to them via Afternic. So while your feedback to me was never anything but "we have sent the buyer several notices and left phone calls and they never replied' the ACTUAL facts were that their credit card failed as a foreign transaction and they never heard of "Dan.com" and felt uncomfortable wiring funds or sending Bitcoin to a bank or entity in Netherlands that they had never heard of.

Plethora meaning what ? Credit Card (but not AMEX which is what most American business people love to use since they get reward points and buyer protection) Wire or Crypto - so plethora is 3 of which 1 which likely fail for any large transaction unless the buyer calls their bank before they try to use it - which they wouldn't know to do - and crypto is used by a tiny number of people and what happens once you send crypto? not much of a comfort of ever getting refunded if you feel like you were unhappy with your purchase.

Also my eventual buyer WANTED the domain. Your feedback to me was 1) he never paid and 2)never responded to follow-up which BOTH were inaccurate - he did in fact attempt to pay and he did try to find out why his card declined .

Solution is simple - raise my prices another 10% and move everything back to Afternic.

p.s. when I mentioned this to Laz PRIOR to making any public post his position was this was an isolated incident. In my experience many of my domain buddies have had the exact same experience as I have so this is not as isolated as it seems. Also Laz said Dan processes so many cards per day they don't have time to track down the failed credit card transactions and follow-up on each one.
Aj,

I am sorry to state that this is not an accurate representation of what we have discussed regarding this buyer.

We have notified you of every follow-up that we have performed. A total of 3 phone calls, 3 account manager payment reminders and 2 automated reminders were issued to this buyer. None of our attempts resulted in any response from your buyer. We notified you that if the buyer had any issues, any of these 8 contact attempts should have sufficed in triggering a response.

On top of that, you asked us why we did not inform you that an attempt was made by this buyer, to which we also informed you that we have a separate follow-up sequence for failed payment attempts. This is to ensure that any who does not contact our support desk upon failure still gets several options proposed to overcome their problem and secure the domain name.

Our team puts in the maximum effort possible to track down and secure any payment for our users.
 
"we have 10s of thousands of attempted credit card payments on a daily basis through our provider Adyen. It would simply not be feasible to monitor every attempt. " - this is what you posted to me.

So once the buyer is spooked yeah they probably won't respond. My buyer tried several different cards ALL FAILED due which bank then messaged him failed due to possible FRAUD. So yeah maybe they don't want to do business with your company after they get a potential FRAUD message.
 

pinkdragon

Established Member
Impact
2,197
I believe charging an extra 2% on credit cards is very bad. Usually, people prefer to pay via cards and when they come to know about an extra 2% amount, many of my buyers cancel the transactions.

It's really so weird to see such activity. Moreover, for whatever the reasons the buyer isn't paying, Dan should communicate us the right message.

How "many" buyers, exactly, you've lost because of that extra 2%?

For a $2,500 domain, your client has to pay an extra $50. If the deal falls because of those $50, that's not a serious buyer.
 

Scale Business

Restricted (Market)
Impact
22
How "many" buyers, exactly, you've lost because of that extra 2%?

For a $2,500 domain, your client has to pay an extra $50. If the deal falls because of those $50, that's not a serious buyer.
When you make a deal after negotiating to 3 to 4 times, and then during payment, the buyer comes to know about extra amount to be paid, then yes a genuine buyer too steps back sometimes.

Well, one of my deal that gone cancelled was a deal at $11000 and because of extra amount buyer stepped back and then decided not to proceed with such things.


For your question towards how many buyers i have lost due to this is : 3 buyers in my know how...

Many accepted offers didn't went through so now i think this can be one of the reasons !!
 
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Impact
241
For a $2,500 domain, your client has to pay an extra $50. If the deal falls because of those $50, that's not a serious buyer.
I actually agree with @Scale Business . It's a psychological thing. He's right, people negotiate back and forth and then expect that specific price. Even if it's only a few dollars more, that's not the point -- the price was negotiated to the exact dollar amount so that's what the buyer is expecting to pay (not a dollar more). Quite frankly, I would rather cover that cost myself. In other words, charge me the regular 9% or 5% if they do not use a credit card but if they do use a credit card tack another 2% on to my fee. I would rather pay that fee than take a chance of potentially losing a deal just because of the 2% surcharge.
 
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Scale Business

Restricted (Market)
Impact
22
Please post a proof that he changed his mind due to 2% added. Did he wrote you that?
He dropped his contact number during negotiations... I called multiple times after the deal got canceled. Once he picked and told me all this story. He then decided not to continue further due to this !!

@Dane Exactly!! This is what a common people think !! and this is what i wanted to share here...
 

DAN.COM

Domain Marketplace
Dan.com Staff
Impact
4,344
When you make a deal after negotiating to 3 to 4 times, and then during payment, the buyer comes to know about extra amount to be paid, then yes a genuine buyer too steps back sometimes.

Well, one of my deal that gone cancelled was a deal at $11000 and because of extra amount buyer stepped back and then decided not to proceed with such things.


For your question towards how many buyers i have lost due to this is : 3 buyers in my know how...

Many accepted offers didn't went through so now i think this can be one of the reasons !!

The buyer could have paid with an alternative payment option that would give them a 1% discount even. To conclude that the payment fee charged for credit card payments only would result in a buyer just dropping their interest in a domain is one that keeps repeating without any validation other than it being a gut feeling.

The logic also doesn't make sense. Would you ever drop your interest in a brand you need for your business over a small payment processing fee?

A direct US bank transfer, EU bank wire or even Adyen's local bank transfer options are available for all buyers since the introduction of our new checkout flow. Besides that, based on the location of the buyer, our payment gateway offers all localized payment options that are popular in the country of the buyer.
 

Scale Business

Restricted (Market)
Impact
22
The buyer could have paid with an alternative payment option that would give them a 1% discount even. To conclude that the payment fee charged for credit card payments only would result in a buyer just dropping their interest in a domain is one that keeps repeating without any validation other than it being a gut feeling.

The logic also doesn't make sense. Would you ever drop your interest in a brand you need for your business over a small payment processing fee?

A direct US bank transfer, EU bank wire or even Adyen's local bank transfer options are available for all buyers since the introduction of our new checkout flow. Besides that, based on the location of the buyer, our payment gateway offers all localized payment options that are popular in the country of the buyer.
When you have multiple options, then yes, after negotiating, small fees of $100 or $200 can change mind of buyers which happened live with my case.

Usually bank transfer option takes time and payment receipt doesn't confirm immediately and that is why most of people dont prefer bank to bank transfer... For those people, credit card is the best option.

For those credit card persons, there is the saying that 2% charging extra can change the minds of few percentage of those people.

if you still think, the 2% is very small fees... then why dont you remove it from DAN side?
 
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topdom

Top Contributor
Impact
1,365
Dan has a major problem which they don't want to fix (parking speed), but in this topic (communication) it is slightly better than AN and Sedo. At least they show IP of the buyer.

Since looks like Dan will never fix the parking problem, it must be intentional,
and we must move somewhere else for parking, but others are not good either.
Looks like all marketplaces are trying to prevent sales and cash flow so they can grab/dropcatch
domains and sell at their own marketplace.
Clearly Dan was designed for bulk buyers: accept, decline, with one click, without opening the negotiation window.
Who would be that bulk buyer: themselves.

Can it be the case that Dan might have been bought by Godaddy, as a second Afternic?
Not impossible imo.
 
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