PayPal extends intangible goods coverage to sellers, but it might not be easy to make a claim.
PayPal has updated its intangible goods coverage for transactions to covers both buyers and sellers of domain names. Previously, PayPal’s protection guarantee only covered buyers of domain names.
The updated coverage protects against someone buying a domain name from you and then disputing the transaction on the grounds that they didn’t receive the domain name. How this will work in practice, however, is a bit tricky.
You’ll need to show proof that the domain was transferred to the buyer:
For intangible or digital goods, proof of shipment or delivery means compelling evidence to show the item was delivered or the purchase order was fulfilled. Compelling evidence could include a system of record showing the date the item was sent and that it was either:
– Electronically sent to the recipient, including the recipient’s address (email, IP, etc.), where applicable; or
– Received or accessed by the recipient.
If there’s a way to verify the email address on the registrar account the domain is being transferred to, it would be smart to make sure this matches up with the PayPal address that paid you.
And, oddly, PayPal’s terms say that signature confirmation is required on purchases over $750 for intangible goods. I understand this requirement for physical goods, but don’t understand how you can get signature confirmation of delivery for an intangible good.
All of this is to say: PayPal might be safe for selling low-value domains, but it’s still worth using a service such as Escrow.com or a marketplace for larger transactions.
On one hand it seems like a complete waste of time for them to even mention this and on the other I applaud their stepping up to address issues 20 years later. I have never had to dispute a domain transaction with PP but have a few times over other things. It comes down to who answers your call.
Mark Thorpe says
20 years late, but better late than never.
Still not enough coverage for domain sellers IMO.
I’ve bought and sold many domains through PayPal. You just cross your fingers and hope the transaction goes through without any problems.
I swore off Paypal and Ebay until a couple of years ago (I still refuse to use ebay) because I was salty for over a decade when they didn’t honour their seller protection on an item I sold. I wasted time faxing documents to their international number because as a leading tech company there was no online support (makes sense right?).
Then I recall adding a note under all my ebay listings that I no longer take paypal, but it wasn’t allowed to deny paypal as a payment so I kept getting my listings suspended.
I was too stubborn to give in and I proudly spread my disgust about Paypal online and anyone that asked, and I sincerely hope it cost them dearly.
“And, oddly, PayPal’s terms say that signature confirmation is required on purchases over $750 for intangible goods. I understand this requirement for physical goods, but don’t understand how you can get signature confirmation of delivery for an intangible good”.
What’s odd about it?
The domain bloggers must start treating “domaining” or domain investmenting as something from out of space. It is not, it MUST comply with all business norms, and traditions. There’s nothing special about domain name sales. It is the same as other products and services being sold out there.
If Paypal requires signatures, that is what they are supposed to require.
Get out of the pond, and jump into the sea.
I truly believe that my Listings at paypal influenced their decision to add Domains. It could not be a coincidence that since I started selling that service, and made a rather beautiful, clear, and simple listings, this positive result occured.
You can see some of my Listings at:
I am also promoting some via Twitter promotions, and ads.
I have decided to treat domaining like orthodox business, where you have to run ads to thrive. I am also buying from domainers, unlike other successful domainers. They talk a good game of people selling their names cheap, but they never take some of the profits they make in million dollar sales and buy from smaller scale domainers.
And, Allemann, I know you are not intended to to protect Escrow.com, because you are a straight shooter, it just comes off like that. I like Escrow.com, but I also want Paypal, as well as others for options.
What type of fee’s do you see using paypal vs escrow.com? Also what risk is there of a buyer at escrow.com backing out and reversing payment vs paypal?
I understand pp is faster, we all like that aspect but beyond that explain why it is equal to or greater in terms of security?
That is creating a fallacy of false choice, you don’t have to choose, we need them both.
I think you answered the question in a unique way.