Lost Domain after Fraudulent Payment

17 replies
Hello All,

I'm hoping you can give me some advice on how to proceed in this situation. A few months ago I sold a website on flippa, and after receiving a Paypal payment, I pushed the domain from my Godaddy account to the buyer's Godaddy account. A couple months later I received notice from Paypal that they had determined the payment to have been fraudulent, and I was forced to return the payment I had received.

Because it was a "digital" transaction, Paypal was not able to offer me any seller's protection. Of course I wanted to get my domain back, but Godaddy was not helpful--they told me to contact the buyer or flippa. The buyer did not respond to my emails, and flippa gave me a relisting credit but said they could do nothing about returning my domain. And of course I can't relist the site until I've regained possession of the domain.

I feel that Godaddy should be helping me more with this situation, especially since they acted as the registrar for both buyer and seller. At the very least I would hope that they could point me in the right direction for taking action to regain my domain.

Does anyone have experience with this situation, and can anyone give advice on how best to proceed?

Thanks so much,

Ralph
#domain #fraudulent #fraudulent payment #godaddy #lost #lost domain #payment
  • Profile picture of the author Pdomain
    Banned
    You may have had communication with the buyer in Flippa private message, take the screen shot of those private messages and show it to Paypal...

    If the case is in process then you can win if you provide supportive documents.
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    • Profile picture of the author rlorenzmusic
      Originally Posted by Pdomain View Post

      You may have had communication with the buyer in Flippa private message, take the screen shot of those private messages and show it to Paypal...

      If the case is in process then you can win if you provide supportive documents.
      Thanks--I actually did that, but Paypal said they couldn't do anything because there were no physical products.
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      • Profile picture of the author Pdomain
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        Originally Posted by rlorenzmusic View Post

        Thanks--I actually did that, but Paypal said they couldn't do anything because there were no physical products.
        There should be reason, without reason Paypal can't refund money to the buyer.. talk to Paypal again.

        You have one more option that is domain changes history from one owner to other, you can get that history and you can show it to Paypal that the domain ownership was changed from you to buyer, there would be time, buyer name, seller name etc.

        Try finding this.

        Anyway, what is the figure of amount, more or less than 1K?
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        • Profile picture of the author rlorenzmusic
          Originally Posted by Pdomain View Post

          There should be reason, without reason Paypal can't refund money to the buyer.. talk to Paypal again.

          You have one more option that is domain changes history from one owner to other, you can get that history and you can show it to Paypal that the domain ownership was changed from you to buyer, there would be time, buyer name, seller name etc.

          Try finding this.

          Anyway, what is the figure of amount, more or less than 1K?
          These are good ideas, thanks. It wasn't a huge amount fortunately (around $70), but I would still like to get the domain back--
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  • Profile picture of the author samkadya
    Originally Posted by rlorenzmusic View Post

    Hello All,

    I'm hoping you can give me some advice on how to proceed in this situation. A few months ago I sold a website on flippa, and after receiving a Paypal payment, I pushed the domain from my Godaddy account to the buyer's Godaddy account. A couple months later I received notice from Paypal that they had determined the payment to have been fraudulent, and I was forced to return the payment I had received.

    Because it was a "digital" transaction, Paypal was not able to offer me any seller's protection. Of course I wanted to get my domain back, but Godaddy was not helpful--they told me to contact the buyer or flippa. The buyer did not respond to my emails, and flippa gave me a relisting credit but said they could do nothing about returning my domain. And of course I can't relist the site until I've regained possession of the domain.

    I feel that Godaddy should be helping me more with this situation, especially since they acted as the registrar for both buyer and seller. At the very least I would hope that they could point me in the right direction for taking action to regain my domain.

    Does anyone have experience with this situation, and can anyone give advice on how best to proceed?

    Thanks so much,

    Ralph
    I guess the contract is between and the seller. In that case then you can sue the buyer to recover your domain.
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  • Profile picture of the author mojo1
    Unfortunately, this might have to chalked up as a lost but in the future, I would strongly advise you to use Escrow.com

    I've used them 3 times this year and have always gotten paid even when a client has paid using paypal. There is a small fee but it's so worth the peace of mind.

    Escrow clears the money first and hold the money until both parties delivers their goods including domain name only type sells.

    You could also list your domains for sale via Godaddy. Just be sure to mark the domain price up enough to cover Godaddy's exorbitant 30% broker fee on the premium side.
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    • Profile picture of the author rlorenzmusic
      Originally Posted by mojo1 View Post

      Unfortunately, this might have to chalked up as a lost but in the future, I would strongly advise you to use Escrow.com

      I've used them 3 times this year and have always gotten paid even when a client has paid using paypal. There is a small fee but it's so worth the peace of mind.

      Escrow clears the money first and hold the money until both parties delivers their goods including domain name only type sells.

      You could also list your domains for sale via Godaddy. Just be sure to mark the domain price up enough to cover Godaddy's exorbitant 30% broker fee on the premium side.
      I appreciate the recommendations to use escrow.com and will definitely look into it--thanks!
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  • Profile picture of the author hashif16
    For a Digital product like Domain name always use ESCROW..
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    Make offer Via Pm:QUALIENT.COM for sale
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  • Profile picture of the author Moneymaker2012
    For a Digital product like Domain name always use ESCROW..
    yup, I also use them for domains selling, haven't seen any fraud like this, also they give importance to both the seller and the buyer on digital products.
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  • Profile picture of the author Ron Killian
    Many years ago sold some domains and websites through pay pal, I got lucky. I sure wouldn't do it these days. Even though it stinks, least you only lost $70. Costly learning experience.

    As for pay pal, the account the buyer used was probably bad, or more likely they used an account they phished access to. In that case, nothing they could do for you. From what you've said, that sounds exactly like what happened.

    While escrow is a much safer payment option, with their fee's, it's not really cost effective if your only selling something for $70.

    As for Godaddy, they won't do crap about anything. Several times I've contacted them about stolen content and more, and they don't do anything.
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    • Profile picture of the author TanM
      As others mentioned, Escrow is definitely the way to go.

      Cheers
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  • Profile picture of the author OrangeBull
    File an action with ICANN to recover your domain.
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    • Profile picture of the author rlorenzmusic
      Originally Posted by OrangeBull View Post

      File an action with ICANN to recover your domain.
      Thanks, this is the type of information that I had hoped Godaddy would give me, at the least.
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      • Profile picture of the author davezan
        Originally Posted by OrangeBull View Post

        File an action with ICANN to recover your domain.
        In my past registrar work, ICANN doesn't "recover your domain". The most they'll
        do is check if the registrar followed their contract to the letter, and that's about
        it.

        Originally Posted by Ron Killian View Post

        As for Godaddy, they won't do crap about anything. Several times I've contacted them about stolen content and more, and they don't do anything.
        Originally Posted by ChrisDouthit View Post

        Godaddy clearly does not care about their customers, I would recommend you do not use them anymore if that is how they treat you.
        Pretty much every registrar will treat the OP's specific issue in the same way for
        this reason:

        Originally Posted by samkadya View Post

        I guess the contract is between OP and the seller.
        Another reason, of course, is the registrar doesn't want to involve themselves in
        he-said-she-said disputes between two parties. That tends to get complicated.

        Originally Posted by rlorenzmusic View Post

        Thanks, this is the type of information that I had hoped Godaddy would give me, at the least.
        That's because Go Daddy knows ICANN will either refer the matter to the former
        ...or do nothing.

        Sorry I don't really have any helpful response. On the other hand, I suppose the
        kind of information you're given may provide some direction.

        Frankly, your only other option is to seek legal advice -- or "other" means. Still,
        you do what you see fit.

        Good luck.
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  • Profile picture of the author ChrisDouthit
    Godaddy clearly does not care about their customers, I would recommend you do not use them anymore if that is how they treat you.
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  • Profile picture of the author packjack
    I recently sold a domain, buyer insisted to send payment through paypal but I didn't agreed.
    Sold it through escrow instead.
    I would never advice anyone to sell domain via paypal.
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