Hello,
Lately, we have been using Paypal because buyers are demanding it regularly. At times, it seems like a selling point even - which is weird considering the buyer wants the domain - you would think they do not mind paying with another method.
For large sales, we use our own merchant account with documents for the sale prior to transfer; or, a wire or escrow.com.
The bread and butter for us though lately are sale of names between $250 - $1000. We have run into an issue where a name was paid for with Paypal and 3 days later, we were notified thaty the account that was used to pay for the name was stolen/hacked/phished
. The buyer has an itrader feedback rating that was a 3. Losing names due to hacked paypal accounts or due to chargebacks months late is very costly and frustrating. The principle of a scammer walking with a fine name for free is also annoying.
If a buyer has no itrader or low itrader feedback/reputation, then we notify them to use escrow.com, wire transfer, or approve a security delay in transferring the name(s). We point the name to them so they get use of it, but we will not transfer the name until after a holding time that varies from 15 days to 60 days.
Paypal mass pay can supposedly not be charged back and carries lower fees for the merchant as well.
Reputation is the key factor.
Is there any way to eliminate the risk without losing a sale? Any new escrow providers that accept paypal and can insure against fraud?