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Is Escrow the only seller protection..

by blue_sky
14 replies
I searched high and low but couldnt find the answer to my question -

when sellling something via paypal one of the biggest risks for a seller is that the buyer is using his credit card (and then asking the CC company to cancel the transaction)

It seems using a service like escrow or asking for a wire transfer is the only way to protect your sale??
#escrow #protection #seller
  • Profile picture of the author bhuff85
    Originally Posted by blue_sky View Post

    I searched high and low but couldnt find the answer to my question -

    when sellling something via paypal one of the biggest risks for a seller is that the buyer is using his credit card (and then asking the CC company to cancel the transaction)

    It seems using a service like escrow or asking for a wire transfer is the only way to protect your sale??
    I've used Escrow a lot for larger transactions (especially when flipping websites). I've heard PayPal horror stories where people have flipped a site, transferred it all over to the buyer and then the buyer makes an "unauthorized charge" claim, which PayPal eventually gives money back to the buyer. And, even if you did win the battle, to take a risk to go through all that garbage isn't worth it.

    Might as well pay a few bucks extra to use Escrow (which isn't much when you consider the fees PayPal takes out). Every transaction I've ever done through it went through seamlessly and without any issues.
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    • Profile picture of the author blue_sky
      thanks but its not about saving the escrow fee...

      I just wanted to see if there are other ideas - the only idea I came up with is to transfer the money in your paypal account to another account immediately after you received the payment (presuming that you are a legit seller here)


      Originally Posted by bhuff85 View Post

      I've used Escrow a lot for larger transactions (especially when flipping websites). I've heard PayPal horror stories where people have flipped a site, transferred it all over to the buyer and then the buyer makes an "unauthorized charge" claim, which PayPal eventually gives money back to the buyer. And, even if you did win the battle, to take a risk to go through all that garbage isn't worth it.

      Might as well pay a few bucks extra to use Escrow (which isn't much when you consider the fees PayPal takes out). Every transaction I've ever done through it went through seamlessly and without any issues.
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      • Profile picture of the author bhuff85
        Originally Posted by blue_sky View Post

        thanks but its not about saving the escrow fee...

        I just wanted to see if there are other ideas - the only idea I came up with is to transfer the money in your paypal account to another account immediately after you received the payment (presuming that you are a legit seller here)
        That wouldn't do anything or add any "protection". If an unauthorized claim came through and you lost that battle, you'd still be responsible for refunding that amount, regardless of if you sent the money onto a different account or not. So, if that money was long gone, you'd have to look for a way to get it back.

        If people could quickly transfer money and get away with it, there would have already been plenty of scam artists on that end of the spectrum, too (i.e. selling horrible products at a high price and when the refunds come through, the money is already gone).
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        • Profile picture of the author blue_sky
          that is a good question -

          I once won a claim against a fraudulent vendor and paypal just gave me the money back they recovered from the vendors account which was like 10% of the money he owed me...



          Originally Posted by bhuff85 View Post

          you'd still be responsible for refunding that amount, regardless of if you sent the money onto a different
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    • Profile picture of the author richrajeevkistoo
      Originally Posted by bhuff85 View Post

      I've used Escrow a lot for larger transactions (especially when flipping websites). I've heard PayPal horror stories where people have flipped a site, transferred it all over to the buyer and then the buyer makes an "unauthorized charge" claim, which PayPal eventually gives money back to the buyer. And, even if you did win the battle, to take a risk to go through all that garbage isn't worth it.

      Might as well pay a few bucks extra to use Escrow (which isn't much when you consider the fees PayPal takes out). Every transaction I've ever done through it went through seamlessly and without any issues.
      could you advise which system you used?

      thanks
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  • Profile picture of the author krjewellers
    I have bought and sold many sites. I have only used escrow services
    once. The key, in my opinion, is working with the buyer or seller through
    the transaction. I usually pay for sites through Paypal, and buy them through
    Paypal. I have even provided a buyer a payment plan in which they controlled
    the site, but I kept the domain until they made the final payment.

    I have never had a problem. But I have never been in a situation where
    someone was completely out to scam me. I think I would win the Paypal
    dispute, however, as I have a longtime problem free Paypal account, and
    I keep good records. Do what make you feel most comfortable for that
    particular transaction.
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  • Profile picture of the author remodeler
    A wire or using Escrow are your best options. I've done both and have never had an issue over the years with either method. Other than personally meeting the buyer who hands you over straight cash, I don't know of another safer method.

    I would never use paypal for any substantail transactions, but I know that some advise getting the other parties address and info, and then mailing them a copy of the site files and getting a return receipt. That way you are covered if they try to make a claim, although I can't vouch for how effective it really is.
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  • Profile picture of the author backoffice
    Well............as per my experience, ESCROW is safer for both parties.
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  • Profile picture of the author imfusa
    How can i get this escrow? I don't understand exactly what it is.
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  • Profile picture of the author GAVROCHE
    Selling/buying websites can be safer if using a WEBSITE SALES CONTRACT. Search on YAHOO or GOOGLE and will find such contracts. Of course, you have to pay for it, but, if you are in the business of selling/buying websites you have to protect yourself. You will also look more professional and will reduce the tentatives of potential scammers.

    Such an example of contract is THE DELUXE WEB SITE SALES CONTRACT on the webpages of sitepoint.com.

    I did not use it, I'm not associate with them, do your homework and see if is a solution for your business.
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    • Profile picture of the author Boricua
      Dude...

      My suggestion...

      If you can't afford to give away your hard earned work for free, use escrow.com when selling/flipping websites.

      Had your same question a few years ago right here on the forum, the customer service team is just fantastic over the phone.

      GL
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