I received the payment and the status of the transaction was "complete". So later that day I setup a transfer of the funds out of Paypal and to my bank. At the same time I transferred ownership via GoDaddy to the new owner.
The next day as I am getting a confirmation that the domain transfer was completed, I also get a notification that my Paypal withdrawl failed. Reason: insufficiant funds.
What?!? I login and find the payment I received for my domain is being reviewed. Paypal wants me to submit documentation supporting my side of the transaction in question.
I email the buyer, she claims she did not initiate the dispute. She the claims she emailed them to get it straightened out.
The same day the payment bounced I contacted GoDaddy to try and reverse the transfer. No luck. They said I would have to file a lawsuit and then forward them the legal docs to get them to lock the domain.
So now I'm back trying to deal with the buyer. She "seems" nice and legit, however I still don't have my money. The status of the dispute case with Paypal states they are waiting on her response. She claims she responded.
What can I do at this point? Right now I'm just trusting it all works out. But I have a little voice in the back of my head that wonders if this was all a scam?
I couldn't even cancel the transaction on our side to show good faith to the customer. Luckily, the customer agreed to pay directly with her credit card as it looked like PayPal's "investigation" was going to drag on and on. Weeks later, once the transaction finally "cleared," I promptly refunded the amount in full through PayPal.
It wasn't even a big transaction- maybe $150!
Anyway, maybe you could have her fax you a copy of her response to Paypal?
[edited by: LifeinAsia at 5:20 pm (utc) on Dec. 19, 2008]
I'll update if it works out. This just seems like a big loophole in Paypal that I wanted to warn folks about.
