Web Hosting Talk







View Full Version : Paypal and chargebacks? Do I have to be affraid?


DennisCitus
07-06-2008, 12:44 PM
I am looking to buy a few domains this week and I've been in touch with several persons.

Also I am looking to offload a few domains and have been in touch with some people.

I have bought and sold domains before, but at this moment I am looking to sell a domain for $200 and buy a domain for $500.


How do I make sure that I get my domain after having paid the first part?
How do I make sure, that I keep my money after having sold my domain?

MH-Stefan
07-06-2008, 01:34 PM
To make sure that you can keep your money, have your client sign the invoice and optionally ask him for a copy of his ID or drivers license. This way you should be safe if he decides to make a chargeback.

Make sure to pay with your credit card when you buy a domain. You can always make a chargeback if you don't receive the domain. Better yet, write an agreement which you and the domain owner will sign before the transaction.

chennaihomie
07-06-2008, 01:34 PM
With Paypal you can never be sure of anything. They create their own rules and do as per they please.

Make sure you pay and get funds only by a verified paypal account(important)

If you have all the documents such as pdf bills/recipts/agreement from the parties involved in the transaction, then i think you can manange if you can get a charge back or some other issues.

linux-tech
07-06-2008, 01:45 PM
With "services" (such as domains), the seller is always protected. Paypal will never side with the buyer on a service dispute. All you need to do is reply to the dispute stating that this is a service (or non tangible good) and it'll be sided in your favor almost instantly. If not, call them up and explain (again) to the rep that it's a service, or intangible good. That ALWAYS works when the chargeback is handled through paypal.

That isn't to say that the buyer's BANK won't do anything. Depending on how the buyer paid (transfer, the bank can't do much about, credit card, they CAN, and you'll usually lose), you may end up with a lot off a hassle.

Keep documentations of everything, transfers, signatures, auctions, everything. As soon as they have the domain(s), then make a copy of the NEW registration to prove to the bank that they did, in fact, gain registration. Make a copy of the OLD registration BEFORE you send it in to them, again, just to prove the changes.

Documentation is key. Since most banks will allow (up to) 6 month chargebacks, you'll want to make damn ssure you have that documentation handy for a year, just to cover your own tail.

Mike D
07-06-2008, 10:39 PM
With "services" (such as domains), the seller is always protected. Paypal will never side with the buyer on a service dispute. All you need to do is reply to the dispute stating that this is a service (or non tangible good) and it'll be sided in your favor almost instantly. If not, call them up and explain (again) to the rep that it's a service, or intangible good. That ALWAYS works when the chargeback is handled through paypal.

That isn't to say that the buyer's BANK won't do anything. Depending on how the buyer paid (transfer, the bank can't do much about, credit card, they CAN, and you'll usually lose), you may end up with a lot off a hassle.


Good point, thanks. I recently had an issue with a clown who decided to take me for a ride after I paid him with Paypal. My bank seems a lot more willing to fix the problem.

u4t2t
07-07-2008, 12:43 AM
escrow would be also one ooption for payment, this would be secure for buyer and seller

RDOSTI
07-07-2008, 12:44 AM
Use Escrow services. Don't use paypal for high costing one time transactions like these.

linux-tech
07-07-2008, 12:51 AM
Escrow is good for larger purchases (1-5k+), but for < 1k, you're still going to probably want to use paypal, at least from what I've seen.

I've had a few recent high(er) end transactions (5-900) and the most they've taken for them is $35 (for the 900 of course), which is pretty good. I don't know what escrow would take out, but it would be a pretty good bet you wouldn't get them that low, and the access to the money would be limited for X number of days (until you can actually get it in the account)

If you're doing two transactions (around $200, $500), you're probably safer using paypal, security wise, and fee wise. They're not THAT bad, really.

Mike D
07-07-2008, 01:44 AM
Use Escrow services. Don't use paypal for high costing one time transactions like these.

Agreed. I always use sedo or escrow.com for domain sales.

HBZSoftware
07-07-2008, 01:48 AM
If you want to guarantee you get the money, use Escrow.com.

Even with all the documentation, PayPal will still not return your money if they can't get it back from the buyer's credit card company. (They will in some cases, but this seems to be a completely arbitrary decision.)

WorldStream
07-08-2008, 09:59 AM
Just fulfill the remaining balance by wire transfer?
Thats always safe...