What are the best payment methods when selling domain names?
There are MANY different types of payment methods.
I personally use Paypal for any transaction under $10,000. Before the buyer and I come to an agreement I make him/her aware that I will require that he/she pay the paypal fees. A great tool for calculating paypal fees can be found at www.PPcalc.com. There are some downfalls to using paypal. If a buyer does a chargeback on their credit card or even disputes the transaction with paypal you will have a hard time winning. I suggest that you only use paypal with people that you know you can trust.
Escrow.com also provides a service for domain names. There is also a fee involved with this and usually the buyer will pay the fees or the buyer and seller will split the fees. Make sure to work this out before you initiate the Escrow transaction. Escrow is one of the best ways for a transaction, though the downfall is that there is no time limit on the transaction. The domain name will not be released to the buyer until all of the funds have been received.
A bank wire is another option. This is a great risk to the buyer since he will be sending the money to your bank account and relying on you to push him the domain name once you receive the funds. Usually the funds are available within 2-3 business days from the day of the wire, though it all depends on your bank. You will need to provide the buyer with your name, bank account number, routing number, bank name, address, and phone number. More information on bank wires can be found here.
There are some other smaller payment processors out there including Moneybookers.com and Epassporte.com. I have used both of them and they worked great for me. Both of them work similar to paypal. I recommend Western Union as well..as long as you and the buyer can trust each other. Western Union poses a great risk to the buyer.
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5 comments:
You are right.Paypal has always been the best choice for <$10,000 transactions. There is a new option now called stormpay(www.stormpay.com).StormPay.com has now added "StormClix". It's a paid to click program where StormPay will pay you into your StormPay account everyday for the ads you click. The ads you get paid for clicking range from 1 cent to $5. Pretty cool way to pick up some extra cash and it doesnt cost anything.
I've personally never been a fan of stormpay. I quit using them last year when there was all of that controversy surrounding them. I actually lost $400..
Sedo has also a escrow system, if you come to an agreement without using sedo services, they charge 3% over the transaction, it's the same as escrow, but germany based, i'm currently doing my first sale through this system, i hope it goes well.
Good luck Mr. Paco. I was reading on Afternic's site today and it seems like they also have an independant Escrow service. That might be something to try as well.
I actually had a fraud situation with PayPal where someone in New York with the same name as me tried to charge something to my paypal account. My paypal account showed the debit but thank goodness it never made it through to my bank account. I had to do an affidavit and everything to get them to remove the fraudulent charge on my paypal account.
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