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Payment Methods for Domains

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Earthian

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I thought I should post a couple of payment methods for domains in case you haven't thought about the points below (especially method No.3 and the 3% SEDO and Afternic fees for a domain not found/sold on the respective sites) or for newer domainers ...





PayPal (link)

Pos: Very fast
Pos: Credit Cards can be used by the buyer
Neg: there is the possibility that the buyer might initiate a Credit Card chargeback which (if granted) would cause the funds to be withheld or withdrawn
Fees: seller pays ~ 3% of the transaction for receiving funds (Premier/Business accounts only ... for Credit Crad payments , not PayPal balance payments)





Escrow.com (link)

Pos: Secure and known method (even for non-domainers) of payment , especially for higher amounts
Pos: Credit Cards can be used from the buyer for amounts up to $5000 at extra cost (Premier Service) ... though there is a chance for a CC scan
Pos: PayPal can be used for US to US transactions
Neg: if the seller backs out of a deal after the contracts are accepted (and fees are set for buyer to pay) , the buyer will end up paying the fees without receiving anything
Fees: $0-$5000: 3.25% (6.3% for Premier) with $25 minimum ... $5001-$25000: $162.50 + 0.26% for the amount over $5000 ... $25000+: 0.89% ... buyer or seller can pay the fees ("buyer pays fees" usually recommended so that the seller does not get stuck with the fees if the buyer backs out , after the contracts are accepted)





PayPal Mass Pay (link)

Pos: Low fees ... 2% of transaction capped at $1
Pos: No Credit Card chargeback ... funds should be only from PayPal balance (not Credit Card)
Neg: funds must be in account beforehand , either from another transaction or from bank account (not from CC which could be chargebacked)
Fees: 2% of transaction paid by the buyer (capped at $1)





SEDO Escrow (link)

Pos: Credit Cards can be used from the buyer from amounts up to $500
Pos: PayPal can be used from the buyer (theoretically a chargeback against SEDO won't be granted)
Pos: SEDO takes possession of both the funds and the domain
Pos: low fees (in the case that the domain is not listed at SEDO)
Neg: sometimes SEDO transactions take alittle time
Fees: 3% if the domain is not listed at SEDO ... 10% if it is listed ... buyer or seller pays fees ... 3% added to the buyer if the amount is larger that $500 and PayPal is used





Moniker Escrow (link)

Pos: Secure , since both the domains and the funds must go at the Moniker escrow account
Pos: Fairly good prices
Neg: the procedure asks for signing of contracts which might be time-consuming (but I think they can also be accepted online)
Neg: the procedure demands a transfer to Moniker (not a push to "the escrow company's account" in the current registrar) which might be time-consuming
Fees: starting at 10% for amounts lower than $500 the percentage lowers gradually (as the amount rises) to 0.93% for amounts $50000 or higher





Afternic Escrow (link)

Pos: known marketplace , possibilities for the transaction to complete rather fast
Pos: low fees (in the case that the domain was not sold at Afternic)
Neg: no Credit Card or PayPal (except eCheck) ... (FAQs are not very clear about payment methods though)
Fees: 3% if the domain is was not sold on Afternic ... 10% if it was sold (or buyer/seller communicated through Afternic)





Disclaimer: the above are from experience and from what I read in the respective sites

 
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