Be Careful When You Use Paypal as mode of Payment
Just a heads up for those who are into domain selling business/hobby or web design or programming services that uses Paypal as the medium of payment.
I’ve read in some forums horrible experiences by domainers and freelancers being scammed of hundreds to thousands of dollars.
This is how the scammer works:
The scammer will buy your domain name and will advise that he only pay by Paypal. You received the money on your Paypal, and then you transfer the domain name to the buyer/scammer.
Sounds safe already, right? WRONG.
A few days or months later the scammer/buyer will file a chargeback at Paypal. Paypal will always allow chargeback. Paypal practically concedes to chargebacks. Paypal will get the money from you and send it back to the buyer/scammer.
If it involves hundreds to thousands of dollars use Escrow.com and other escrow services.
You can still accept Paypal payments if the buyer is someone you already knew and trust.