When can you start to spend the money after selling a domain name?

[petetas]

I recently sold 2 domain names at SnapNames (or SnapYourMoney) at their auction at a good price. The proceeds from the sale were in my
account on the same day the auction closed. However, 16 days after the sale, the proceeds were removed from my account. I just
happened to notice this on the same day this occurred in the Financial History screen. These showed as "Return" type transactions. The
domains were returned to my Moniker account the next day. I did not receive email notifications for any of this. When I sent an
inquiry plus a request for my money back, someone at SnapNames notified me within a day and said that there was a fraudulent buyer and
it affected one of my domain sales. She also said that a certain person would contact me within a business day. After repeated emails
and a phone call, I finally got the privilege of a response 9 days later. His vague reply to my question of when the seller is off the
hook after receiving the proceeds was 30 days. Other than that, the conclusion I drew from his email was that since I got the domain
names back, this issue is closed.

Their website explains that proceeds from any sales cannot be transferred out of SnapNames until 7 days. Other than this, there is no
other mention of any obligation by the seller after this time. The implication I get from this is that I am on the hook for 7 days
after receiving the money, but not more than that. I sent SnapNames a reply demanding my money back since the 30 days obligation is not
anywhere stated in their website. I believe I am now on their ignore list.

On the first day of this ordeal, I sent Sedo a hypothetical question as to what is their policy under this scenario without mentioning
my situation. The key part to their response is "If Sedo has issued a payment to you, it means we have confirmed a change of ownership
and that your role in the transaction has been completed." I have not contacted GoDaddy about their policy. I would guess since they
actually transfer the money to you, same as Sedo, instead of keeping it in your balance, it is not as easy for them to recall the money.

I used to feel that it was a convenience to have a credit balance at SnapNames. This also gave me an excuse for purchasing other domain
names. I no longer feel that my money is safe at SnapNames. This is further compounded by the recent incident of the fraudulent bidding
by a former SnapNames employee. If SnapNames is not able to survive the impact, I am worried that I could lose all proceeds. Given all
this and their high (20%) commissions, I do not feel it is a good place to sell names. However, I still feel it is a good place to
make purchases.

 

[Theo]

Sorry to hear about this mess. Never leave your universal pass (money) in another's Disney money account.

 

[petetas]

Sorry for drifting off topic in my wordy post - was just too angry at SnapNames after that experience. Basically, I was hoping for some feedback on what is a reasonable amount of time to put the money on hold before spending it after selling a domain name where the buyer used a credit card. For example, I believe the buyer could issue a chargeback, for up to 2 months after the purchase. If this occurs, is it the burden of the previous domain owner to pay back the credit card company, or the company that handled the transaction such as SnapNames, GoDaddy, etc? Or should the previous domain owner only be on the hook for a specified amount of time?

 

[DTalk]

I don't know if Snapnames has some 'hold funds' policy. But, They shouldn't imo.


For me, domain sales deals are not a 'try & buy' exercise....the deal is done the moment the cash is received, and the domain is transferred...

...The money should be yours immediately that is done.


Chargebacks, and the like, should only ever happen when there's a case of proven fraud - eg the domain is proven not to have been delivered....Nothing else makes sense, imo.

.

 

[stewie]

that is just amazing...Snapnames strikes again!!!!

sorry to hear this,

 

[britishbulldog]

More devious stuff by the oversee,snapnames,moniker group of companies,i am still waiting for ticket back from support after 3 months LOL

 

[dominator]

Basically, I was hoping for some feedback on what is a reasonable amount of time to put the money on hold before spending it after selling a domain name where the buyer used a credit card. For example, I believe the buyer could issue a chargeback, for up to 2 months after the purchase.

theoretically it could be 3 months or even 6 months

but for me as a seller, it would not be reasonable
(one week is long enough, 1-2 days is better)

escrow companies can wire you the payment
and that cannot be reversed

 

[Slipxaway]

Chargebacks, and the like, should only ever happen when there's a case of proven fraud - eg the domain is proven not to have been delivered....Nothing else makes sense, imo.

.

There is always the possibility, and probably the likely cause in the OP's case, that the buyer was using a stolen credit card. They probably assumed that they could use a stolen card, buy a domain, once they got it, maybe push it into another account or a friend's account and then they would be untouchable. Who knows, people try all kinds of stuff.

I know that Snap is shady, but really I would just be happy that you were able to get your domain back. Some people are victims of fraud and they never see anything returned (not necessarily talking about domains).

 

[tkstark]

this is bad news. i don't like the way snapnames holds your money hostage for seven days after a sale...and it actually can take up to 10 days because they only transfer funds twice a week - tuesdays and fridays, i believe. so if your seven days are up on a saturday, your money isn't released until the following tuesday. i've always transferred money out as quickly as i was able. this story shows that it's important, in my opinion, to keep doing that.

 

[petetas]

... i don't like the way snapnames holds your money hostage for seven days after a sale...

I do not fully see their logic in their 7 day lock down since you can you use the proceeds to buy domain names during this period. For example, I could immediately buy a domain name for larger price than the one I sold, and then cancel my credit card and close my account after paying, and there goes their protection. In addition to being very shady, the company is not also the sharpest pencil in the drawer.

 

[tkstark]

I do not fully see their logic in their 7 day lock down since you can you use the proceeds to buy domain names during this period. For example, I could immediately buy a domain name for larger price than the one I sold, and then cancel my credit card and close my account after paying, and there goes their protection. In addition to being very shady, the company is not also the sharpest pencil in the drawer.

I've assumed the 7-day lock down has nothing to do with protection but rather to encourage people to use the money onsite.

 

[Wilhelm]

What a coincidence.... Exactly the same happened to me.

November 14, i sold two domains at Snapnames to two different user names. The sales looked okay: the money of both sales was not "pending" but was allmost immediately in my "funds available for domain purchases" .

November 23, i requested a cash-out and a few days later the money was wired to my bank account in the Netherlands.

December 1, i logged in to my Snapnames account and i noticed that instead of a positive balance i had a negative balance. I emailed Snapnames what the reason was for this.

December 2, i received an email from Snapnames that the buyer appears fraudulent and that this had affected my sales. Someone else of Snapnames would research my case and would contacted me. I the meantime i allready had seen it in my Snapnames account that both domain sales were cancelled November 30.
My sold domains had soon new nameservers and with this information i could easily google a name, address and even pictures of the new owner. Both domains are since early December back in my Moniker account with my contact details. After reading the storey of Petetas there is a good chance we had the same (fraudulent) buyer?

 

[petetas]

Same dates here. Nov 14 was the date the names were sold to "life hunter". Sales were canceled on Nov 30. I am sure it is the same buyer. Very unprofessional handling by SnapNames. No emails notifying that this event occurred. Also very slow and extremely stingy response upon repetitive emails to them. Also no satifactory explanation on what exactly is their policy. For all I know, you can see a sale cancelled a year later.

 

[Wilhelm]

One domain was sold to "life hunter", the other domain name to "dragonlayer".

Until now i didn't get another email from Snapnames what had happened. I had a bit regret of one domain sale so i am not making a big problem of what happened but i agree with you that the attitude of Snapnames was not very professional in our case.

 

[Dale Hubbard]

How these operators stay in business beggars belief. If I were to behave like that in the similar markets that I work in, I wouldn't expect to be trading for too long.

 

[afloat.com]

How these operators stay in business beggars belief. If I were to behave like that in the similar markets that I work in, I wouldn't expect to be trading for too long.

Without any regulation they can do whatever the hell they like!

IMO these "cash" accounts should be regulated (In Australia any running account such as you might have with your stock broker is regulated like a bank account)