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My Ongoing Horrible experience with DAN.com

Dynadot

aryindey

Established Member
Impact
888
What happened...

On one of our local web development forums, a friend who is a web developer requested for some .co domains for a project he’s developing for one of his clients. I sent him some of my .co domains and he opted for BeCute.co informing me that his client loves the name.

Upon agreement on price, I asked him to pay me directly without any third party involvement just to avoid any commission fee but he said he want everything to be formal because receipts and invoices will be presented to his client and what have you. So, I imported the lead into DAN to serve as an escrow and he was sent those DAN transaction mails.

Upon him receiving the BUY NOW mail, he called me saying he doesn’t seem to understand the DAN transaction process so well. I told him that it should be as straightforward as possible and if possible for him, he can visit me in my office to put him through.

He came to my office and I put him through the transaction process and he successfully paid with no issues.

After his payment, I was sent an email as expected from @DAN.COM that the payment has been received and that I should provide the auth code which I did.
Auth code request.png



Few moments later after submitting the auth code, Dan sent me another email which reads:
The buyer would like to receive the domain at Epik. Could you please push the domain to our Epik account?
Please use the following details: Email address: [email protected]
Thank you!

I then transferred the domain name to DAN’s epik account which was done successfully as shown below:

transfer to Dan's account.png



After few hours that same day, I received an email from DAN’s transfer specialist that the domain name has been transferred to the buyer successfully and that my payout will be processed within one business day or so. I also confirmed from the buyer if he has received his domain and he confirmed receiving the domain.

Dan's transfer successful.png




As the scheduled payout time was approaching, I received a mail from DAN’s Simon that “This payout is currently on hold due to compliance reasons. Our team will get back to you at the beginning of next week.”

simon payment on hold.png


N.B: I have received this type of email around 2020 when I sold a certain domain name to a Nigerian. Dan asked me then to provide ID and I should Explain how I knew the buyer which I did and the transaction was later completed.

But in this case, it was totally different. On the Monday of the following week, Dec 27, 2021, 4:35 PM, I received a mail from DAN, which reads:

“ We unfortunately are forced to cancel the transaction for the domain becute.co. Please check your transaction window for more details about the reason”
transaction cancelled.png


One Minute later, I received another email stating their proposed reason for cancelling the transaction. The mail reads thus:

Jeffrey - Senior Transfer Specialist has sent you a new message regarding the domain name becute.co.

Dear,

Our fraud detection team, in cooperation with Adyen, has marked your transactions as fraudulent. After conducting additional research, we’ve assigned a high fraud score on your user profile and therefore have terminated your account, canceled and refunded all your current sales with us.


The above email of an alleged fraudulent activity stated that they have "refunded all current sales" which is an absolute lie.

Up till the moment of writing this, I have not been paid, nor has my domain been returned to me, neither has the buyer been refunded. No explanation whatsoever on why the transaction was categorized as "fraudulent".

I tried my best to contact DAN's support, but it seems those guys aren't getting the point. One was even saying they never took possession of the domain like wtf.






My questions are as follow,

  • is it because the buyer and seller are from the same country (Nigeria) that made the transaction Fraudulent? (because this is not my first time of successfully selling domains to Nigerians on other platforms like Afternic)

  • Why is DAN chat support keep saying since the transaction was cancelled, I never transferred the domain to their account? Which is absolute false. Dan took possession of the domain and transferred it to the buyer before they cancelled the transaction and never returned my domain.

  • Since DAN cancelled the transaction after taking possession and transferring the domain name yo the buyer, When will my domain name be returned to me and the buyer refunded?
 

DAN.COM

Domain Marketplace
Dan.com Staff
Impact
4,292
We're very sorry to see this and that you had to go through this negative process.

We've asked our team to review their decision again to see if there's a solution here after all.

Having said that, please do note that this case seems like an edge case since the situation looked quite similar to how fraudsters operate.

We'll be in touch with you shortly.
 

Kachi

Established Member
Impact
176
Seller and buyer both using the same ip probably set off some alarms. I can see why they wanted to investigate further.

Annoying but reasonable. Good luck, hope you get this resolved and congrats on the sale.
My thought too. But it's up to DAN to state the reason ...... if at all they will.
Our team will follow up with you in a bit and will make an exception and pay you out for this transaction only.

Without diving into too much detail here, we're afraid we cannot reinstate your account with us.
I am a Nigerian, and I know several Nigerians on NP and DAN would want you to go into details on the the reason a Nigerian selling to a fellow Nigerian on DAN would be termed a fraudulent transaction.

Since Nigerians risk their accounts being closed permanently on DAN without the opportunity of being asked for clarifications, this will make us really skeptical about the successful completion of future transactions.

We need some clarifications
 

FolioTeam

AMDB.tv
Impact
6,477
My thought too. But it's up to DAN to state the reason ...... if at all they will.

I am a Nigerian, and I know several Nigerians on NP and DAN would want you to go into details on the the reason a Nigerian selling to a fellow Nigerian on DAN would be termed a fraudulent transaction.

Since Nigerians risk their accounts being closed permanently on DAN without the opportunity of being asked for clarifications, this will make us really skeptical about the successful completion of future transactions.

We need some clarifications
It might be a payment method issue. I have purchased domains from Dan as a Nigerian and the transaction wasn't flagged.

However, I had a flagged payment with Epik last year when I tried paying for an aftermarket domain with my flutterwave barter visa card due to the $100 limit on our normal bank cards. Long and short of it was I had to do some series of verifications before that could be rectified.

Payment processors like Adyen, PayPal etc have systems that check through things. I even believe that's why PayPal allows some cards to be added to your wallet while some other cards just throw up red flags left, right and center. I notice this more with prepaid cards/virtual cards.

Another thing, in cases that deal with payments, most platforms (GoDaddy etc) won't really tell you that's why they are banning you so as not to expose those loopholes for others to take advantage of
 
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Kachi

Established Member
Impact
176
You purchased domains on DAN from fellow Nigerians?
It might be a payment method issue. I have purchased domains from Dan as a Nigerian and the transaction wasn't flagged.

However, I had a flagged payment with Epik last year when I tried paying for an aftermarket domain with my flutterwave barter visa card due to the $100 limit on our normal bank cards. Long and short of it was I had to do some series of verifications before that could be rectified.

Payment processors like Adyen, PayPal etc have systems that check through things. I even believe that's why PayPal allows some cards to be added to your wallet while some other cards just throw up red flags left, right and center. I notice this more with prepaid cards/virtual cards
 

sharfab

Top Contributor
Impact
1,877
I like the way both Dan and the other OP are handling this dispute. This is how business is supposed to be conducted when an issue arise. The OP stated his opinion and backed it up with screen shots and Dan responded by researching the claim and paying him for the (1) transaction. There was no name calling or slander from neither side.. This is an example for many on the forum to read and simulate so that an amicable agreement can be reached when someone feel there is a matter to be addressed. Imo
 

Escanor

Established Member
Impact
12
Our team will follow up with you in a bit and will make an exception and pay you out for this transaction only.

Without diving into too much detail here, we're afraid we cannot reinstate your account with us.
If your "team" have realized it was a legitimate transaction, realized your obvious folly and have decided to make the payout, why then would you not reinstate the posters account?
Is this how you now operate @Dan?. Flagrant disregard and insensitive to your sellers.
This Hubris is indeed legendary
 
I like the way both Dan and the other OP are handling this dispute. This is how business is supposed to be conducted when an issue arise. The OP stated his opinion and backed it up with screen shots and Dan responded by researching the claim and paying him for the (1) transaction. There was no name calling or slander from neither side.. This is an example for many on the forum to read and simulate so that an amicable agreement can be reached when someone feel there is a matter to be addressed. Imo
I agree, however I am still curious why Dan stated "Without diving into too much detail here, we're afraid we cannot reinstate your account with us."

So seems there's more to the story that either Dan or OP is not telling us.
 

Etim Abasiama

Established Member
Impact
60
We're very sorry to see this and that you had to go through this negative process.

We've asked our team to review their decision again to see if there's a solution here after all.

Having said that, please do note that this case seems like an edge case since the situation looked quite similar to how fraudsters operate.

We'll be in touch with you shortly.
Please do look into it, it's very sad for someone to go through such stress just bcos he's from Nigeria.

Can you tell me that if the transaction was done between 2 Americans you'll be saying all this?

I trust you guys to look into it.

Modified.

I think this has been answered by someone here. But you can still clear the air by providing more clarifications to this since it's incumbent on you and not those. Thanks
 
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Etim Abasiama

Established Member
Impact
60
Seller and buyer both using the same ip probably set off some alarms. I can see why they wanted to investigate further.

Annoying but reasonable. Good luck, hope you get this resolved and congrats on the sale.
Will similar procedure be followed if the IPs were all from Florida?

I just want to knw that? Thanks
 
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Etim Abasiama

Established Member
Impact
60
My thought too. But it's up to DAN to state the reason ...... if at all they will.

I am a Nigerian, and I know several Nigerians on NP and DAN would want you to go into details on the the reason a Nigerian selling to a fellow Nigerian on DAN would be termed a fraudulent transaction.

Since Nigerians risk their accounts being closed permanently on DAN without the opportunity of being asked for clarifications, this will make us really skeptical about the successful completion of future transactions.

We need some clarifications
Exactly my point, e.g. if I list a domain for a quick flip and someone with a deep pocket also likes the domain and wants to buy for reselling purpose, will they classify the transaction as fraudulent?

My question is, is that the same procedure they(Dan) follows if the IPs were coming from another country other than Nigeria?

I just need explanation Please
 

branding

Who's afraid of red, white and blue?
Impact
7,277
Will similar procedure be followed if the IPs were all from Florida?

I just want to knw that? Thanks

Oh please, you guys are the ones who entered the 'being from Nigeria' issue into the discussion. That's just silly.

I'm not affiliated with Dan but yes, that's usually a big fat red flag for a lot of businesses no matter where you're from.

Combine that with log activity they surely have regarding this purchase, I'm not surprised this happened.

Does it suck for OP? Sure. But nothing out of the ordinary. All part of the game when you're a business.
 

branding

Who's afraid of red, white and blue?
Impact
7,277
Exactly my point, e.g. if I list a domain for a quick flip and someone with a deep pocket also likes the domain and wants to buy for reselling purpose, will they classify the transaction as fraudulent?

My question is, is that the same procedure they(Dan) follows if the IPs were coming from another country other than Nigeria?

I just need explanation Please


You're missing the point. I never mentioned ips being Nigerian, nor did I state that's the reason.

If I would run Dan, and I would log both the seller and buyer using the same ip, no matter where they're from, I'd block the transaction. Basic stuff really.

Edit: I'm mentioning you guys using the same ip as the buyer went over to the sellers office to get the sale done. Why he couldn't just hand over cash, wire, crypto with an invoice is beyond me. He mentioned having an office, implicating with that it's a business, hence my presumption it wouldn't be do hard to close a sale in private.

In short, lots of red flags when it comes to risk assessment/management for an escrow service like Dan.
 
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Oh please, you guys are the ones who entered the 'being from Nigeria' issue into the discussion. That's just silly.

I'm not affiliated with Dan but yes, that's usually a big fat red flag for a lot of businesses no matter where you're from.

Combine that with log activity they surely have regarding this purchase, I'm not surprised this happened.

Does it suck for OP? Sure. But nothing out of the ordinary. All part of the game when you're a business.

I think as Dan customers, getting some explanation will help us further appreciate the protections Dan has in place. In this scenario, was it flagged because it was a Nigerian transaction? or a fraudulent form of payment used? or log/IP history showed same location? or fraudulent seller and/or buyer? or something else valid?

I'm also curious why both seller/buying using same IP would be flagged as fraud if a valid form of payment was used. Maybe I don't understand how scammers work.

I can also appreciate if Dan wants to keep it secret to not expose their methodology.
 
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branding

Who's afraid of red, white and blue?
Impact
7,277
I think as Dan customers, getting some explanation will help us further appreciate the protections Dan has in place. In this scenario, was it flagged because it was a Nigerian transaction? or a fraudulent form of payment used? or log/IP history showed same location? or fraudulent seller and/or buyer? or something else valid?

I can also appreciate if Dan wants to keep it secret to not expose their methodology.

No serious company is gonna give you that exact info for security reasons.
 
No serious company is gonna give you that exact info for security reasons.
That's fine and what I expected.

It's just in this particular situation, Dan said they'll make an exception and still pay out, but blocked the sellers account going forward. I'll give Dan the benefit of the doubt and infer there's something amiss about the OP/seller.
 
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biix