Is Paypal still risky?

[Toonz]

Reading old threads it seems that buying domains entirely through Paypal is risky and you should only do it if you can afford to lose the money you're spending. Is that still the case? Or have Paypal since introduced any new measures to protect buyers of intangible goods like domains?

 

[Skinner]

For a buyer its still good, for the Seller not that great. This isn't first hand experience, my friend sold a website and domain, the buyer did a "not as described" claim and got refunded before returning the domain because he says paypal were only interested in the website NOT domain.

 

[RobM]

I didn't use paypal in the old days until I believe 2007 or 2008 it became regulated and answerable to financial complaints. Having said that twice I've had to phone customer service due to their appalling website. The first time I was on hold for 45 mins (to US at a high rate - cost me something like 50 euros for the phone call) and the second time shorter but when I said 'Hello I'm having a problem with my account' the operator said 'Sir don't raise your voice' and hung up! Twice in several years I've had paypal disputes against me both of which I won when I put in my side of the story so didn't take too long. However I would still never leave too much money in your account and if you're using them for high value domain purchases or sales I would recommend NOT using them - look to some kind of escrow.

 

[RobM]

Oh I should also add they have never... ever... ever... responded to an email query or complaint.

 

[Toonz]

OK, thanks for your replies. Yes I generally try to keep my Paypal balance to a minimum.

 

[ImageAuthors]

The main issue is that a buyer can file a chargeback through Paypal after receiving the domain. In that case, they just yank the funds out of your balance unexpectedly. There's a time limit on resolving such disputes, and dishonest people will string a seller along until the opportunity to file a dispute has elapsed.

Trust isn't the only issue. I had a guy file a charge back by accident because – months down the road – he didn't recognize the transaction and assumed it was fraudulent. He wasn't trying to cheat me. But he didn't refund me on time either. So the deadline for filing an official response with Paypal came and went while this guy kept telling me he'd resolve things. He admitted his mistake and ultimately repaid me. But the charge back itself was automatically decided in his favor even though he admitted it was erroneous and completely his fault. Huge pain in the neck dealing with him and Paypal. Having my balance suddenly drop without warning wasn't fun either.

Paypal itself is fine. But ask yourself how inconvenient it would be if the transaction amount were deducted from your balance or bank account one day down the road. If the amount is large enough to cause a problem, then don't use "naked" Paypal. Instead, use an escrow service. Clothing a Paypal transaction with Escrow.com means that Escrow.com deals with Paypal charge backs, if and when they occur. You just get the money and are done.