Exorbitant PayPal Fees on Domain Sales

[Haroon Basha]

Complaint Against Exorbitant PayPal Fees on Domain Sales via Dynadot

I am writing to express my deep concern and disappointment regarding the high transaction fees imposed on a recent domain name sale payment I received. thrthorough PayPal.

Last week I sold a domain name for $631 via Dynadot Lead, which rightfully deducted a 5% commission, leaving me with $599.45. However, upon receiving the funds via PayPal, I was shocked to see that only $567.97 was credited to my account. That’s nearly another 5% fee deducted by PayPal, on top of it their conversion charges will be levied (approximately 2% to 3%), and additionally my bank charges—altogether eroding almost 20% of my legitimate earnings.

Notably, I have never encountered such deductions when receiving domain sale payments through other major platforms like Afternic, Sedo, Brandbucket, Atom, where PayPal payments typically arrive in full without deduction.

This raises an important question: why is PayPal treating payments from Dynadot differently? Domain flipping is a legal, recognized business model—not an unconventional or illicit activity that warrants punitive deductions.

It is high time fair and transparent regulations were enforced to curb such unreasonable charges. Alternatively, sellers like myself may have to explore more affordable and equitable alternatives to PayPal—or stop accepting PayPal altogether.

I urge esteemed Namepros members to look into this issue seriously and brainstorm a clear alternative, solutions to stop this discrepancy. The commissions eats up all our profits. We need clarity, fairness, and respect for our business.

Sincerely,
Haroon Basha

 

[alcy]

Complaint Against Exorbitant PayPal Fees on Domain Sales via Dynadot

I am writing to express my deep concern and disappointment regarding the high transaction fees imposed on a recent domain name sale payment I received. thrthorough PayPal.

Last week I sold a domain name for $631 via Dynadot Lead, which rightfully deducted a 5% commission, leaving me with $599.45. However, upon receiving the funds via PayPal, I was shocked to see that only $567.97 was credited to my account. That’s nearly another 5% fee deducted by PayPal, on top of it their conversion charges will be levied (approximately 2% to 3%), and additionally my bank charges—altogether eroding almost 20% of my legitimate earnings.

Notably, I have never encountered such deductions when receiving domain sale payments through other major platforms like Afternic, Sedo, Brandbucket, Atom, where PayPal payments typically arrive in full without deduction.

This raises an important question: why is PayPal treating payments from Dynadot differently? Domain flipping is a legal, recognized business model—not an unconventional or illicit activity that warrants punitive deductions.

It is high time fair and transparent regulations were enforced to curb such unreasonable charges. Alternatively, sellers like myself may have to explore more affordable and equitable alternatives to PayPal—or stop accepting PayPal altogether.

I urge esteemed Namepros members to look into this issue seriously and brainstorm a clear alternative, solutions to stop this discrepancy. The commissions eats up all our profits. We need clarity, fairness, and respect for our business.

Sincerely,
Haroon Basha

no pp for from dd on over 500us for north America and or others

but check for your country

otherwise use afternic checkoit link at 5% after u check fees there

 

[AEProgram]

Complaint Against Exorbitant PayPal Fees on Domain Sales via Dynadot

I am writing to express my deep concern and disappointment regarding the high transaction fees imposed on a recent domain name sale payment I received. thrthorough PayPal.

Last week I sold a domain name for $631 via Dynadot Lead, which rightfully deducted a 5% commission, leaving me with $599.45. However, upon receiving the funds via PayPal, I was shocked to see that only $567.97 was credited to my account. That’s nearly another 5% fee deducted by PayPal, on top of it their conversion charges will be levied (approximately 2% to 3%), and additionally my bank charges—altogether eroding almost 20% of my legitimate earnings.

Notably, I have never encountered such deductions when receiving domain sale payments through other major platforms like Afternic, Sedo, Brandbucket, Atom, where PayPal payments typically arrive in full without deduction.

This raises an important question: why is PayPal treating payments from Dynadot differently? Domain flipping is a legal, recognized business model—not an unconventional or illicit activity that warrants punitive deductions.

It is high time fair and transparent regulations were enforced to curb such unreasonable charges. Alternatively, sellers like myself may have to explore more affordable and equitable alternatives to PayPal—or stop accepting PayPal altogether.

I urge esteemed Namepros members to look into this issue seriously and brainstorm a clear alternative, solutions to stop this discrepancy. The commissions eats up all our profits. We need clarity, fairness, and respect for our business.

Sincerely,
Haroon Basha

agree. If you have your own merchant account, depending on country, transaction fee, etc the fees ends up being closer to about 3% on average. I noticed some retail stores started charging a surcharge if you pay with a credit card.

 

[alcy]

oh and ps... pp fees have nothing to do with legal vs illegal biz lol

 

[Haroon Basha]

oh and ps... pp fees have nothing to do with legal vs illegal biz lol

Yes, their main aim is to suck the blood, they don't bother whichever way money comes from.

 

[pb]

The reason you receive full amount from afternic and sedo is that they cover the pp fees.

 

[karmaco]

The reason you receive full amount from afternic and sedo is that they cover the pp fees.

Exactly. Dynadot is not covering the fees to PP. Which they don't have to. Adjust prices accordingly.

 

[alcy]

juat read dyna tos

if under 500 u pay fee guaranteed

Ifover 500 they do mass payment and no fee depending on country.

I imagine india not covered.

north America free.

 

[The Durfer]

inflation and tariffs are showing up, see the consumer gets screwed in the end every time, raise your prices, join the inflation train.

 

[Janoss]

If they use Mass Payment they should be able to send without exorbitant fees like some marketplaces do.

@Dynadot @Caleb Tweed can you please see if this can done?

 

[alcy]

If they use Mass Payment they should be able to send without exorbitant fees like some marketplaces do.

@Dynadot @Caleb Tweed can you please see if this can done?

its already done
>500
not all countries

 

[Caleb Tweed]

@Dynadot @Caleb Tweed can you please see if this can done?

So it kind of varies on the Paypal account we're sending to. When we can, we send PP payments fee free (or a small $4.99 fee if it's outside of the US), though Some PP accounts aren't able to accept these kinds of payments. We'd obviously love to send it to you fee free so you can get your whole payment, but if your account won't accept non-business payments then we don't actually get the option too.

@Haroon Basha I checked into your recent payout and can confirm that was the case, and can even send the Paypal transaction from our side to show we didn't take anything out on our side if that helps! DM me if interested.

 

[Haroon Basha]

Thank you very much for explanation @Caleb Tweed .
Hard to believe that it was due to PayPal policy that my PayPal account does not accept non business fee-free payments. Even last week I got fee-free payment from Sedo. Afternic take only $1 fee, Atom is completely free.
Moreover, why I was kept in dark by Dynadot about the PayPal Fees when I preferred Payment through PayPal? I preferred PayPal because I have been receiving full payment, without any cut, all these years. Deducting 5% fees by PayPal is really a matter of concern. I have been using this PayPal ID for more than 10 years, and I have been receiving fee-free payments from Afternic, Sedo, Brandbucket, Atom etc regularly. How come Dynadot is an exception in this regard is surprising. @Dynadot .

 

[alop]

They ain't that free. Transaction is afterall just a credit

 

[alcy]

Thank you very much for explanation @Caleb Tweed .
Hard to believe that it was due to PayPal policy that my PayPal account does not accept non business fee-free payments. Even last week I got fee-free payment from Sedo. Afternic take only $1 fee, Atom is completely free.
Moreover, why I was kept in dark by Dynadot about the PayPal Fees when I preferred Payment through PayPal? I preferred PayPal because I have been receiving full payment, without any cut, all these years. Deducting 5% fees by PayPal is really a matter of concern. I have been using this PayPal ID for more than 10 years, and I have been receiving fee-free payments from Afternic, Sedo, Brandbucket, Atom etc regularly. How come Dynadot is an exception in this regard is surprising. @Dynadot .

ps was your payout over 500?? as far as I know 500 or more is mass payment no fee. under it is with pp fee...

but even above could depend on country..

however I really dont believe pp decides if fee.. and It depends how dyna sends it

so in that sense it's all on dyna

 

[Haroon Basha]

@alcy That is what I am saying it was Dynadot's mistake that they did not tell about this hidden PayPal Fees. Had they published anywhere in their website. I would not not prefer PayPal at all. You know the blood suckered PayPal again deducted another $19.30 from $567.97 towards their ridiculous conversion charges. Net I received only $548.67 against Dynadot transfer of $599.45. PayPal transferred only 46,807.87 Indian Rupees, that is $548.67).
If this is not loot, what else?
I want Dynadot should refund me the PayPal Fees (the difference between $599.45 and 567.97.
All proof attached herewith.
Domainers beware!

 

[AEProgram]

if sucking money wasn't enough, it seems they took a few percent from the phone battery too. Where does this end?

seriously though I am shocked what they hit people in India with. You basically pay 4.4% (in the US we pay about 3) and this is before they hit you with the FX fee etc.

 

[Bob Hawkes]

I am saying it was Dynadot's mistake that they did not tell about this hidden PayPal Fees.

I understand your concern about the charges, but in fairness the Dynadot ToS section regarding payouts does say this:

"NOTE: Dynadot is not responsible for any additional fees that may be charged by PayPal or any other payment method providers."

That said, it would be good if Dynadot could add a payout option like Wise that would probably have lower fees for those in a number of countries.

Personally, I almost always take Dynadot sales money as account balance, to get the 2% bonus, and use sales balance at other marketplaces when I want to get funds for other than domain registration, transfer and renewal costs.

Bob

 

[Caleb Tweed]

I understand your concern about the charges, but in fairness the Dynadot ToS section regarding payouts does say this:


That said, it would be good if Dynadot could add a payout option like Wise that would probably have lower fees for those in a number of countries.

Personally, I almost always take Dynadot sales money as account balance, to get the 2% bonus, and use sales balance at other marketplaces when I want to get funds for other than domain registration, transfer and renewal costs.

Bob

Wise might not be a bad idea for this, we actually already accept Wise payments through our site! I'll chat with our team about adding it as a Payout option.

 

[alcy]

Wise might not be a bad idea for this, we actually already accept Wise payments through our site! I'll chat with our team about adding it as a Payout option.

dan had crypto payout
I think namesilo does too

u already use it to pay

are u thinking crypto payout too?