"Unauthorized" PayPal payment - can a domain be frozen?

[randomo]

Hi guys,

I just got an email from PayPal, saying that a substantial payment I received this morning may have been "unauthorized". I had already pushed the domain into the buyer's GoDaddy account.

I called GoDaddy, but a clueless-seeming representative said there was nothing they could do to stop the domain from being transferred elsewhere. I was hoping I could file a dispute that would put a temporary hold on that domain.

Was he right? Is there really nothing they can do?

Thanks in advance for any advice.

Dave

P.S. Since it was "intangible goods", PayPal doesn't cover it ... so if this really is a scammer and GoDaddy can't help me, then I've just lost this domain for nothing. I hope it was just an honest misunderstanding somehow.

 

[psalzmann]

Hi guys,

I just got an email from PayPal, saying that a substantial payment I received this morning may have been "unauthorized". I had already pushed the domain into the buyer's GoDaddy account.

I called GoDaddy, but a clueless-seeming representative said there was nothing they could do to stop the domain from being transferred elsewhere. I was hoping I could file a dispute that would put a temporary hold on that domain.

Was he right? Is there really nothing they can do?

Thanks in advance for any advice.

Dave

P.S. Since it was "intangible goods", PayPal doesn't cover it ... so if this really is a scammer and GoDaddy can't help me, then I've just lost this domain for nothing. I hope it was just an honest misunderstanding somehow.

I don't want to burst your bubble but you were scammed. This happened to me quite often but the way around it is simple. You have a 72 hour holding clause to your clients or you suggest escrow.com. I haven't been scammed using this method in over 2 years.

Sorry about your loss

Peter

 

[randomo]

I don't want to burst your bubble but you were scammed. This happened to me quite often but the way around it is simple. You have a 72 hour holding clause to your clients or you suggest escrow.com. I haven't been scammed using this method in over 2 years.

Sorry about your loss

Peter

Uh, yes, I know I was scammed.

As a result, I have already started delaying domain pushes after receiving payments. I guess we all need to learn that lesson sometime. (Escrow is such a hassle, but maybe it is a necessary evil above a certain price.)

 

[ak007]

In GoDaddy's Domain Ownership Transfer email it states:

If for any reason this information is incorrect or you feel this change of registrant request was made in error, please contact us within 15 days at mailto:[email protected].

Maybe the only way you can get it back is to email godaddy that it was made in error. I don't know if it would work but worth the try.

 

[mr-x]

I just got an email from PayPal, saying that a substantial payment I received this morning may have been "unauthorized". I had already pushed the domain into the buyer's GoDaddy account.

What was the name / paypal id of the buyer ??

 

[randomo]

In GoDaddy's Domain Ownership Transfer email it states:

If for any reason this information is incorrect or you feel this change of registrant request was made in error, please contact us within 15 days at mailto:[email protected].

Maybe the only way you can get it back is to email godaddy that it was made in error. I don't know if it would work but worth the try.

Thanks, that's great advice - I just sent them an email. I appreciate your help!

What was the name / paypal id of the buyer ??

The buyer apparently accessed someone else's PayPal account and used their name. If you get a buyer from France named Sabrina, be careful ....

 

[Rom]

Just reply to paypal's email with proof.

Once it happened to me when I sold a script. I just sent them the sale page and they gave the $ back in few hours.

 

[randomo]

In GoDaddy's Domain Ownership Transfer email it states:

If for any reason this information is incorrect or you feel this change of registrant request was made in error, please contact us within 15 days at mailto:[email protected].

Maybe the only way you can get it back is to email godaddy that it was made in error. I don't know if it would work but worth the try.

I wrote to the "undo" address. Here is their reply:

*****
Thank you for contacting Domain Services. We received your email regarding a changes made to domain CZV.net. After reviewing the changes, we have determined that the changes were made by a verified or authorized party. For that reason, we will be unable to reverse the changes.

Any disputes over the ownership or wording of the domain name itself will need to be sent either to the registrant, through an arbitration forum such as World Intellectual Property Organization (http://www.wipo.int), or the local court system. Per ICANN regulations, domain registrars are prohibited from becoming involved in domain ownership disputes.

If you find that you are unable to contact the registrant because the contact information given on the Whois database is invalid, please write back to [email protected] and let us know.

Thank you.

Domain Services
*****

Frustrating. I have just written to the invalidwhois address, but do not really have any hope that it will help.

 

[champ_rock]

I don't want to burst your bubble but you were scammed. This happened to me quite often but the way around it is simple. You have a 72 hour holding clause to your clients or you suggest escrow.com. I haven't been scammed using this method in over 2 years.

Sorry about your loss

Peter

please tell me why a 72 hour delay? the refund period is 7 days right?

 

[ak007]

I wrote to the "undo" address. Here is their reply:

*****
Thank you for contacting Domain Services. We received your email regarding a changes made to domain CZV.net. After reviewing the changes, we have determined that the changes were made by a verified or authorized party. For that reason, we will be unable to reverse the changes.

Any disputes over the ownership or wording of the domain name itself will need to be sent either to the registrant, through an arbitration forum such as World Intellectual Property Organization (http://www.wipo.int), or the local court system. Per ICANN regulations, domain registrars are prohibited from becoming involved in domain ownership disputes.

If you find that you are unable to contact the registrant because the contact information given on the Whois database is invalid, please write back to [email protected] and let us know.

Thank you.

Domain Services
*****

Frustrating. I have just written to the invalidwhois address, but do not really have any hope that it will help.

Yes it is very frustrating that they won't help when payment is being reversed. And I don't understand what they mean by "error" if they won't get involved anyway. Are you going to try wipo? I think you should still try every avenue possible as you need to put the pressure on the buyer. And in the process you will find out what works and doesn't. It's not right that people can scam and get away with it. I have the opposite problem where I was sold some websites at a very overinflated price (not even worth 1/3 what I paid) as seller misrepresented sale with false traffic and income. So the way I see it I didn't receive what I paid for. I will fight to get refund and if necessary warn others not to do business with this person in any forum.

According to this thread
http://www.namepros.com/legal-issues-and-disputes/332520-paypal-resolution-process-i-am-angry.html
paypal can go either way on the issue even if considered intangible goods but since it is "unauthorized" rather than buyer filing complaint, it may be difficult to get your money through them because he could have used someone else's account or credit card without authorization, provided false information in opening paypal account or is reversing it himself through his credit card. But whatever paypal is asking you do provide complete proof just in case it may help.

If I find out anything that can help I will let you know.

 

[psalzmann]

please tell me why a 72 hour delay? the refund period is 7 days right?

I'm not sure what the refund period is but the fact remains is whenever someone's paypal account is charged without consent it is usually within 24 to 48 hours until an "Unauthorized Funds" email response is sent to our inbox from Paypal. 72 hours (3 days) is sufficient enough time for the client to wait for the software before they can download.

Honest people understand this clause. It's just terrible it has to be this way. Existing clients experience no delay.

 

[longd]

make sure the buyer has confirmed address in paypal. It is more protected..

 

[randomo]

Well, GoDaddy and PayPal were zero help. Meanwhile, a new owner is listed in whois for this domain.

Do you think I should contact that owner, and if so, what would be the point? (How would you feel if someone contacted you and said, "You know that domain you just bought from someone else? It was stolen from me, and I'd like it back.")

 

[mwzd]

Ask the new owner to provide payment details.

Though at $50 it might be better to get the domain.

Isn't it a criminal offence in the states to buy stolen property?

 

[Alan Glennon]

If nothing else, perhaps a group like DNOA could maintain a database of stolen domains.

Any idea of how often this occurs? What the magnitude of the problem is?

 

[gmtfan]

Next time, push your domain to email address or information include in Paypal payment. Could help!

 

[randomo]

Next time, push your domain to email address or information include in Paypal payment. Could help!

I did that! The problem, of course, was that the scammer was accessing somebody else's PayPal account and email address.

Appreciate the thought, though ....

 

[gmtfan]

I see!
I don't know why you did not use escrow in this case: Valuable domain, high price and for un trusted buyer.

 

[randomo]

I see!
I don't know why you did not use escrow in this case: Valuable domain, high price and for un trusted buyer.

I had reasons ... but they weren't good reasons.

I handle such transactions differently now.