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Industry's alternative to Paypal?

Labeled as discuss in General Domain Discussion, started by abstractdomainer, Sep 12, 2020

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  1. abstractdomainer

    abstractdomainer Upgraded Member Gold Account

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    PayPal takes as high as 4% - 5% of the credit amount.
    Then, there is the conversion rate factor as well. A huge chunk goes there, depending on the currency.
    All big platforms like Sedo, Afternic, Dan, Flippa etc. have PayPal as one of the important and easy Payment options.

    As a buyer, it makes sense to pay since you are paying at the price you agreed to, but as a seller, it is a big hole in the pocket. My credit is 6 - 7% lower.
    For a $5,000 sale on Afternic, you pay:

    1) A 20% commission (in this case, it would be $1000)
    2) $4,000 gets credited in your account
    3) PayPal takes approx 5%
    4) Actual amount in the Paypal ($3,800)
    5) Currency converts at a different of 2% (average for any country)
    6) I receive $3,724



    If a platform does the same at 2% commission, the same sale would look like this:

    1) A 20% commission (in this case, it would be $1000)
    2) $4,000 gets credited in your account
    3) Platform takes approx 2% overall
    4) I receive $3,920


    Difference = $3,920 - $3,724 = $196.
    Let's consider some more buffer and find it at $150 as the difference.
    That is equal to the investment in 1 4L .com that can then have a potential to sell for high $$$ or low $$$$. Just by using a platform that takes higher commission, I am actually foregoing a possible 4 figure sale.


    What's the option? Most buyers prefer PayPal because everyone has it. Is there an alternative to get away with 2% or so as the fees and not the 6-7% that we end up paying, without causing an issue with the deals, such that the buyer is also comfortable?
     
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  2. NameDeck

    NameDeck Top Contributor VIP

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    You missed the currency conversion in your second calculation.

    I use Dan (or private) and payout by wire. zero fees.

    As an alternative, Epik/masterbucks maybe? You can withdraw by wire. Not sure what the fees are.
     
    Last edited: Sep 12, 2020
  3. pb

    pb Established Member ★★★★★★★★★★

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    Why convert currency? I get USD payment from afternic and then I spend USD at godaddy etc., no problem here. Sure, you'll have to convert the amount you want to withdraw, but why withdraw the full amount? Then you have to convert (and lose) twice, once when you sell/withdraw and once when you buy/pay.

    Also not sure what 5% you're talking about in 3) but maybe it depends on country or whether you have a private or company pp account?
     
  4. Grilled

    Grilled Black Lives Matter VIP

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    upload_2020-9-12_11-43-36.png


    Sav.com charges what I believe is an industry low 4% commission. Leaving 96% to the seller!

    upload_2020-9-12_11-33-42.png
     
    Last edited: Sep 12, 2020
  5. abstractdomainer

    abstractdomainer Upgraded Member Gold Account

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    It is auto-convert for some countries.

    Ya. So if someone sends you $100 via PayPal, you get $95 as credit. The other $5 is PayPal fees.
    Will check masterbucks in that case.
    This is good. But I am talking on an average. You won't list your name on one platform.
     
  6. Samer

    Samer Top Contributor VIP

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    Epik Escrow especially if domain @ epik
    ZERO RISK if domain at epik
    (Same commitment youll need hold Dn at Sav)

    @Rob Monster?
     
    Last edited: Sep 20, 2020
  7. Grilled

    Grilled Black Lives Matter VIP

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    Sav marketplace is registrar agnostic.

    You can sell a domain registered at any registrar on Sav.com for an industry low 4% commission. (y)

    @Nick R
     
    Last edited: Sep 20, 2020
  8. Kuffy

    Kuffy Name Stag VIP

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    Bitcoin is becoming the medium of exchange for the Internet, and it is the obvious choice for virtual assets such as domain names. Bitcoin is my major method of accepting payments, and I make a surcharge of 10% for other methods (except English gold coins ). I'm a small investor, so I won't make much difference at the moment, but the more people who start to accept Bitcoin, then the easier it will be for us.
     
  9. Samer

    Samer Top Contributor VIP

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    I like @DAN.COM Dan Escrow

    Thank you for self-lead 5% Reza :)


    works like charm; and always excellent support Shout out;@LaszloSchenk^^

    Give them try if able : ))
     
    Last edited: Sep 20, 2020
  10. newdawndomains

    newdawndomains Established Member

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    Can't you do an ACH transfer from Afternic?
     
  11. alcy

    alcy Top Contributor VIP

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    Dude whats the planet u live on...all big guys like afternic gd sedo ...do mass payouts so no 4 or 5% pp fee..u just pay their commissions
     
  12. alcy

    alcy Top Contributor VIP

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    Be bit careful with dan cause they charge extra 5% for over 2k pp payouts... its beter to do bank wire or btc then
     
  13. tonyk2000

    tonyk2000 Top Contributor VIP ★★★★★★★★★★

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    If the seller is profitable, he should be able to withdraw or otherwise spend what he earned. So, in paypal case, withdrawal is a must. While it may be acceptable for U.S. based sellers with linked USD-denominated bank accounts, the situation would be different for non-U.S. based selllers. Want to withdraw? Fine, but paypal would require an exchange from USD to the sellers country currency. And they'll offer very unfriendly rates. I'd say that currency exchange is one of the main sources of income for paypal ;-().

    So, if a marketplace offers "paypal only" payouts - then it is indirectly asking non-U.S. sellers not to use them. This happens on a new (and promsing) porkbun registrar / marketplace for example ( @SlackJawedYokel maybe you can share in this thread or in porkbun-related thread why you do paypal only? Your registrar is great. Is the marketplace part still under development?).

    Bitcoin would be a good alternative. The problem with it that not too many real-life (including offline) merchants accept it, so we should probably wait. Someday, we will not read "bitcon price raised / dropped" in news headlines, as it would be changed to "USD/EUR raised / dropped" (against bitcoin). Which is what it should be. The nature of bitcoin is that it should be used, not exchanged....
     
  14. Kuffy

    Kuffy Name Stag VIP

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    I agree that Bitcoin is not for everyone. It is extremely volatile, and will continue to be so in my opinion. Bankers and finance houses are busy accumulating, and it is my belief that they are doing this to maintain its volatility. Price trebling,and then halving does not attract the general public, but it does give the scalpers amongst us to pick up a bit of extra profit. If you are accepting Bitcoin, then you need to be prepared to hold your coins for a year or so. You also need to stop watching the high points in the price ( unless you are a trader ) and watch the long term trend of the low points.

    If you need immediate income from your domain sales, then it would probably be better to quote prices in a fiat currency
     
  15. abstractdomainer

    abstractdomainer Upgraded Member Gold Account

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    But does that mean same exposure to the names. Why would someone limit to just one platform?
    Also, the question here would be PayPal fees. I am okay paying 10% to Afternic if they bring in sales for mw. But over that, 7% to PayPal is a lot. And that's my concern.

    Ya but the platforms won't pay in Bitcoin. Imagine selling on Afternic and expecting BTC payment. One won't get that.
     
  16. garptrader

    garptrader Top Contributor VIP ★★★★★★★★★★

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    Rather than BTC which is volatile in price and can take (in practice) 75-90 for transactions to clear, why not use a stable coin like USDC ? Transfers clear in a matter of minutes and fees are modest around 1%.
     
  17. Kuffy

    Kuffy Name Stag VIP

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    Bitcoin "clears" as soon as your transaction gets into a block, but a low miner's fee may delay this. I't the number of confirmations that you require that can extend the duration. 3 seems to be the usual quantity that most accept, but that could take up to an hour with "average" block generation times of 10 minutes. If you compare that with PayPal's 6 months, it's pretty good in my opinion. PayPal can reverse a transaction at any time within the following six months, and this is one of the disadvantages of these centralised payment methods.

    Pegging a stable coin to fiat doesn't really make it stable, as fiat currencies are unstable, but not as volatile as Bitcoin I agree. If I wanted to use a fiat payment system, then I can get free instant transfers using faster payments in the UK, but that doesn't help with international payments of course.

    Bitcoin is immutable, and cannot be reversed. This is great for the seller, but it does mean that the buyer has to trust the seller to push the name over to him. Transactions are a matter of public record, and now seem to be accepted as payment records by the courts, so the buyer does have some legal redress.
     
  18. Don Gondon

    Don Gondon Established Member

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    No, PayPal does not "take" that from Afternic sales. Only $0.10 gets deducted. You should be receiving 3999.9 from a 5K sale.
     
    Last edited: Sep 23, 2020
  19. abstractdomainer

    abstractdomainer Upgraded Member Gold Account

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    Again. Crypto is risky. But USDT could be used as a currency itslef, given its stability.

    Okay. So no fees after these platforms deductions, you mean?
    So in total, I end up paying 10% which is the platform commission, that's it?

    How does that happen? In personal sales, deductions are 5%. In platform sales, is it not?
     
  20. brandpainvestment

    brandpainvestment Established Member

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