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.