PayPal Risk

[cybermonkey]

Hi, everyone!

I need some advice on how do I protect myself using (PayPal) buying and selling domains. Is it important to have a verified (PayPal) for both seller and buyer? Can a buyer do a "Charge Back"? In which case would you recommend to use (Escrow) service?

Thank you,

 

[webfreak]

Unfortunately, you really cannot fully protect yourself using PayPal to complete domain transactions. Even with a verified buyer, there is a risk that you will lose the domain and the money.

I'd recommend using escrow.com or Moniker Escrow with transactions in the high $xxx on up.

Moniker Escrow: http://www.moniker.com/aftermarket/domain-escrow.jsp

 

[mis_chiff]

Isin't there a way to invoice the buyer and
put a clause in the description about it being
"the sale of a domain name and there is no refunds. And by agreeing
to this purchase - buyer agrees to terms?"

Would paypal honor that - knowing the buyer was aware
of the terms?

 

[Daniel]

It's useful to have both verified, but not a guarantee.
They can charge back (anyone can).
Use www.Escrow.com for any large $XXXX deals.

Dan

 

[r72gs]

Would paypal honor that - knowing the buyer was aware
of the terms?

Paypal might, but if a credit card was used to add to paypal it could be up to the credit card comapny. Who knows how they would see it.

Best best, use escrow.com.

 

[Porte]

PayPal won't fully protect you against digital goods; including web sites, web products and domain names. So I would not certainly recommend PayPal for high-priced transactions. And using Escrow would be safer bet.

 

[SimpleDomaining]

it is really hard to protect yourself from fraud, which happens sometimes when you use paypal, but there are steps i always do at least to have a chance to fight back. i have had situation when i sold domain via paypal, got money, pushed domain and next day buyer claimed his money back. So after that i first of all always keep the email conversations with buyer, where he mention that he is going to send me payment via paypal. Next, i open my domain account, put mouse over the clock on the monitor to see date and time and make a print screen image that at this day and time, which was BEFORE buyer sent me payment via paypal, domain belonged to me. Next i do print screen of confirmation page of pushing domain to the buyer's account again with day and time on the image. This is giving me some prove, that right before i got payment, domain was mine, and that right after i got payment i have pushed domain to buyers account, which he provided via email, which i sure keep. This does not giving me guarantee to get my money back, when fraud happens, but giving some hope. And i sleep well . Anyway, i never do any sales over $100 via paypal.

 

[JoeCanadian]

Here's my suggestions:

- know your buyer. If you are dealing in an environment like NamePro's where there is a buyer feedback - look at the feedback and if you don't feel right about a transaction its ok to pass.
- require that payment be from the seller's cash balance. Your buyer can't do a credit card chargeback if he doesn't use a credit card. Also saves on fees if your money is paid to a personal account.
- agree with suggestion of using alternative with higher priced amounts. One platform I've used for smaller amounts is TDNam. Cost is only $5 for transactions under $100 and I've been told by TDNam that they absorb the risk of chargebacks. Of course both buyer and seller have to both be members of TDNam which is I think $4.99/year.

 

[domainco.us]

PayPal won't fully protect you against digital goods; including web sites, web products and domain names. So I would not certainly recommend PayPal for high-priced transactions. And using Escrow would be safer bet.

Why is this so?