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

 

[Caleb Tweed]

dan had crypto payout
I think namesilo does too

u already use it to pay

are u thinking crypto payout too?

We're working on that as well.

 

[Joe drake]

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

Think Thats bad try buying crypto through paypal ,in the end they are loansharks.

 

[marijuanadomain]

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.

So are auto pay too
They want you to use your checking account...no fees
If you use credit card there will be a 3% charge
My local vendors want me to pay in cash and gets a discount

I guess cash is king again

 

[Eric Lyon]

With my business PayPal account its a flat 2.99% for sending/receiving goods/services and for credit card transactions. So, I always calculate that when ever I decide to use Paypal for anything. It can be chalked up as a cost of doing business.

Generally, you can compensate for all the different fee %'s by marking up your domains sale price.

For example:
If your domain is listed at $400 and you expect a 5% Marketplace fee + a 3% Paypal fee = 8%, that's roughly $32, so $32 - $400 = $368.

If you want to retain the $400, you'll need to compensate for that 8% by marking your price up to $435 x 8% = $34.80 - $435 = $400.20.