Paypal scam when selling your website

Hi guys! forgive me if I have posted on the wrong section, but I guess my question is closer to money making. And forgive me also if their has already been an existing topic for this. But this has been lingering on my mind for some time now.

I am considering selling some websites (Maybe in flippa, here, etc.). But, I have read several articles, forums, comments, that buyers can scam you especially if you use Paypal.

A buyer buys your site, and after you transfer domain and deliver files, buyer eventually files a dispute on Paypal (stating that he/she did not receive them, etc). Paypal opens a case but most often than not, Paypal will favor buyer and issue refund. Hence, you lose your site and lost that "would be" revenue.

My questions:

- Has anyone experience this?

- I know that you would suggest Escrow. But what if you're selling a site only for smaller amounts like $50, $100, $200, etc. (The huge $25 Escrow fee would just seem very impractical for low value sites).

- For example, when the buyer has already paid. Can you instantly withdraw the money from your account so that when a buyer tries to scam you by filing a dispute in Paypal, there's no longer a balance in your account to make that refund? Will Paypal go deeper and retrieve that amount from your credit card, account, etc?

- The ultimate question would be how to prevent this scenario when you're dealing or selling your sites especially if you're using Paypal.

Thank you in advance for the thoughts and contributions!

Regarding posting in the correct section, I think the correct section of your thread is "Legal, Coyright, and Payment Processing". You are selling with Flippa and I think Flippa already handles payment related problems but I am not sure so Leave Flippa and lets talk about Paypal as I have not checked it since many days.

It was 4 years back when paypal was not listening to the sellers and used to refund the whole money to the buyers even if the claim of buyers is not justified. After then paypal has improved and now it also gives the sellers a chance to talk in their favor and explain the situation. The sellers now also has an option of refunding part payment. I will say do a deal and I hope everything will go right. If at anytime it happens that you met a scam who files refund after taking the site then you should be prepared for that. Take screenshots of all things that include screenshot of your sale and auction on Flippa, screenshot of site ownership when you are the owner, and screenshot when the buyer becomes the owner. Present all these proofs to paypal and if you are right then paypal will favor you. At the end truth wins.

Seller is in way better position when selling intangible goods.
If buyer file dispute, you just say it was intangible goods like digital product, service etc. and you will win that case for sure.

Thanks for the inputs! Now I'm getting much more confident with such transactions.

The most sad thing regarding paypal is taking more commission. That's hurts more than we expect.
http://paypal.com