11 replies
Hey all,

I only have a PayPal account would it be wise to use them for accepting payment for a website I'm selling? I'm hoping the price will be around $800 but I don't want to transfer the site and for the other party to claim their money back. I'm sure they wont.. just worried as Paypal usually just gives money back without thinking twice.

Thanks,
Lou
#flippa #paypal
  • Profile picture of the author motley
    Hey Lou,

    I don't believe anyone can prevent Paypal from giving buyer's money back to the buyer. If your buyer contact his bank and say that he didn't authorize this transaction, the bank will contact PayPal and they freeze your account until you proof that you received that money legally. But even when you proof your sale, which isn't too difficult, PayPal can unfreeze your account, but keeps the disputed amount frozen until the issues with the buyer's bank is solved. You don't have chances to get this money back if what I said above happens, because PayPal won't fight with the bank on your behalf. You are too small and the bank is too big... Finally, after a few month, the disputed amount of money will be sent back to the buyer.

    Based on my personal experience.

    - Dmitrij
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    • Profile picture of the author thedark
      Originally Posted by motley View Post

      Hey Lou,

      I don't believe anyone can prevent Paypal from giving buyer's money back to the buyer. If your buyer contact his bank and say that he didn't authorize this transaction, the bank will contact PayPal and they freeze your account until you proof that you received that money legally. But even when you proof your sale, which isn't too difficult, PayPal can unfreeze your account, but keeps the disputed amount frozen until the issues with the buyer's bank is solved. You don't have chances to get this money back if what I said above happens, because PayPal won't fight with the bank on your behalf. You are too small and the bank is too big... Finally, after a few month, the disputed amount of money will be sent back to the buyer.

      Based on my personal experience.

      - Dmitrij

      I had cases when paypal disputed the chargeback, and won. They always say that they are disputing it, but the truth is that they won only about 1 or 2 to 20 losses. The problem is that the decision is at the bank, and they think that sending money to paypal is like using your credit card anywhere on the web. They do not take into account that for paypal you need to provide utility bills, proofs, credit card is verified, etc.

      I recommend anyone to use escrow, even for small amounts. If you think that the amount is too small to use escrow, then a possible scammer knows that you think that and this is why they are working mostly on amounts that are considered "small". If you get a lower amount than you expect, this means that the buyer makes a good deal so he should be willing to use escrow in exchange of a small fee. If you get a higher amount than you think the website is worth, then this might be a flag. Scammers usually seem to not care about how money they give, then you think that you found a gold mine and you find it hard to believe but you are hoping that this is true and you are ready to take the risks ( of losing the money, like on lottery, despite there are very very small chances, people still play in masses ).

      If you still don't want to use escrow, make some small "mistakes" to try to catch him. For example, say that he have to pay a little more than you negotiated, and then say that it was a mistake. A scammer will tell you that he will pay anything, because he does not use his money. Then send him a contract to sign, in this way, you are protected if the buyer is legit, but after he gets the domain he finds out that he can get the money back and the domain too, while he claims that someone entered into his account or got his credit card details. With the contract you can have a higher chance against the bank.

      Then, make sure that the person who sign the contract is the same as the person who owns the paypal account. If the name is different, then ask him to use his own paypal account or to go to escrow immediately.

      If the buyer is from nigeria or something simmilar, then step out right now.

      Again, if he pays a higher price and you took all steps to protect yourself, then consired it a risk that you assume. Even if you put your money on bank to get an interest rate of 4% a year, you can still lose the money.
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  • Profile picture of the author Thomas Smale
    Use Escrow.com if you want to be 100% safe. Costs a little more but is almost entirely safe, whereas Paypal is not at all.
    Signature
    I specialize in selling websites over $10,000 in value. No obligation, confidential valuation here.
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    • Profile picture of the author onegoodman
      Originally Posted by Thomas Smale View Post

      Use Escrow.com if you want to be 100% safe. Costs a little more but is almost entirely safe, whereas Paypal is not at all.
      I agree with Thomas. Escrow is much safer ( not 100% safe but better ) than paypal.

      It is also a good experience to figure it out for future purchases. Escrow is not usually good on small amount ( but around 1K would be reasonable to use them )
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  • Profile picture of the author Brad Gosse
    If you want to cover your butt with this all you need to do is ensure your buyer has a shipping address and verified account with paypal.

    Fedex a short bill of sale to him/her and keep the tracking #.

    If they claim non receipt all you do is quote the tracking #
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  • Profile picture of the author Louis Raven
    Thanks guys, brilliant suggestions.

    I've only done a 3 day auction so hopefully can get an escrow account by then. If not I'll use PayPal and send a bill of sale
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  • Profile picture of the author sbucciarel
    Banned
    For that amount, I've used Paypal frequently. Actually, I've used it for Flippa for amounts up to $2,500 without any problem, but escrow.com is the safe way to go. If there's any doubt at all about your buyer, be safe rather than sorry.
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  • Profile picture of the author Street Jammer
    I have been with flippa 3 years now , check the buyer profile if he is new dont accept payment more than $500 in paypal , go for escrow
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  • Profile picture of the author Jonathan Joseph
    Escrow.com is perhaps your best bet in this case, it's a trusted service, and protects you and the buyer.
    Signature

    Jon

    "Success comes when people act together; failure tends to happen alone." -- Deepak Chopra

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  • Profile picture of the author Reinhart Osmond
    Maybe you should use www.escrow.com/index.asp to anticipate this.
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