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Using PayPal when paying for domain..

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urljunky

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What is the proper way to pay when buying a domain from another domainer with paypal?
Should I send the money "to a friend" and pay the fees? Or should I send money "purchssing an item" and have the other party pay the fees? I've always paid the fees, but they have never been over a dollar. Paying an extra .18 cents or .30 cents doesn't seem like a big deal to me, but I was also wondering if there is anymore protection by paying as purchasing an item? Just in case they never forward the domain is your purchase protected under paypal rules? Just wondering.
 
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If the transaction is for a significant amount it would be best to use some form of escrow.

Paypal is fine for smaller sales, which you can just come to an agreement with the buyer on who is to cover any fees.
 
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I have always just paid.
And the buyer pays the fees as the buyer gets the money.
I have never paid fees.
 
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Check PayPal's policies with regard to sending under the 'friend' status. I would not risk it. I would just pay for it as a product or service. You're protected under PayPal.
 
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Buyer can claim dispute after domain transferred
 
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Buyer can claim dispute after domain transferred
Doesn't always mean they will win. PayPal will in fact investigate it and determine if it's legitimate. On the same note no one will trust sending their money to a stranger through an unsecured service. They run the risk of being scammed. Upseo probably seen the nasty side of a PayPal dispute for not delivering what he promised :-D There's also Escrow.com but they charge a bit. Normally people selling really high priced domains use Escow.
 
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I'm in Japan and I look at things a little bit differently after being in the US. In the US; while I was there in WA State (don't know if this has changed everywhere or even in my home state), the price states $2.00 for Widget A.

Everyone from Washington knows the policy on sales tax, so Widget A may be a consumable good which isn't taxed (besides cigarettes, alcohol, beer, etc.) or has sales tax on it.

However, in Japan we have two prices which are clear: the price of the product and what you will pay for it at the counter.

If the domain name isn't a considerable amount and the person is trusted, I will pay through PayPal. I will send the amount plus cover the fees. Let's say for instance it costs $100, I will send $102 (don't have a PayPal calculator handy and figured they're not accurate to the penny anyway). The person on the receiving end will get $100 and I will put down the cost of the domain being $102, but track it with 3* entries: total cost of ownership ($102, or more if I renewed it on a transfer*), listing price ($100) and fees paid ($2 + transfer/renewal*). This gives me a clear and concise way of measuring exactly how much I paid for a domain, whether I used PayPal or Escrow for the transaction (as Escrow could be no fees, full fees or split fees).

Sometimes it works in my favor (I get it right on or a penny above for the seller) or below (a penny to dollars under, which I will then make for up in a gift if there is anything to settle).

I do this as a polite gesture though and as @iowadawg stated, it's up to the seller to pay the fees for the domain. I could very well send $100 as it was listed for $100 and them receive $97.50.

In addition to that, it is in the rules of this forum, you are supposed to send money as paying for goods or services (auctions, seller rule #4). Which in this case, if an auction ended at $100, you pay $100 and the seller will receive $97.50. If there are any disputes on why they didn't get $100 and fail to push the name and/or refuse to refund the money, report them immediately.

Nobody; and I repeat nobody, is required to follow the same practices that I do (send more for goods and services to cover fees). I solely do this for the purpose of others as I was once a beginner and that extra $2.50 or so could have helped me out buy another 2 domains, getting ahead a lot quicker (possibly). The way I see it is, it's all about paying it forward.
 
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Just as a friendly reminder PayPal does NOT protect buyers of intellectual property. This includes domains, websites, etc. If you believe you would be at risk of a scam use Escrow.com.

If you already sent money to an individual you think would scam contact your credit card provider immediately so they can place a stop payment.
 
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Just pay using the friend option.
No fees on either side.
I do this, and others on this forum do it.
Just recently today here, a domain I auctioned for 8 bucks.
The buyer sent me 8 bucks.
I got 8 bucks.
One way to avoid the fees for sure.

Yes, paypal will investigate, so if you do it on namepros, send them the thread.

Also, in July this year, paypal will now cover digital goods!

Last note, to date in all these years and years of using paypal (hey, I joined at the start when they offered 25 bucks to join!).
Have yet to either lose a dispute or got scammed.
 
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Buyer can claim dispute after domain transferred

When selling a domain and collecting payment via PayPal I always send PayPal invoices with a clear terms and agreements section.. at the very least stating "By paying this invoice you agree that there will be no refunds, no chargebacks and no returns permitted. We agree to transfer the domain name [Domain] to your [Registrar] account once payment is made. From there we are no longer responsible for the domain name and are in no way responsible to return the payment in anyway."

Something along those lines.
 
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It's best to use Escrow.com. You want to make sure the transaction goes smooth. They're experts in that as long as both parties follow through. I would certainly use them especially if exchanging something of high value. The cost of Escrow.com is a very small price to pay versus the headache you can potentially encounter of the transaction goes south. Hopes this helps.
 
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It is always better to clear things in TOA before the auction, be wise to mention that the domain will be transferred in 3-4 day once payment is made, gives you enough time to withdraw the money from Paypal.
Else use Escrow.
 
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