SnapNames chargeback scam artists increasingly affect domain sellers

Not enough money to buy a domain, at Moniker.

Domain sellers lose a chunk of money on SnapNames.

A domain seller who claimed his cash balance was ‘stolen’ from his SnapNames account, is reporting that the chargebacks were reversed by SnapNames.

Despite this satisfactory closure, other users are reporting that the SnapNames domain selling platform is inviting scammers that reverse their payment – some as late as 120 days later.

The end result is that the domain sellers are left with a negative balance, which are required to pay back. In the process, they lose the domain names they sold as well.

Says one such affected SnapNames user:

“The first chargeback I suggested to Snapnames that I will only pay the negative balance if and only if they guarantee that the domain will be returned to my Moniker account. After paying the negative balance I fortunately got the domain back.”

For the other domain that was affected, the same seller mentions:

“Anyway I’m still in negative balance for the second domain chargeback but have until October this year (when the domain expires) to retrieve it. Snapnames have at least guaranteed me that the domain will be returned to my Moniker account upon payment. However this and all other horror stories about the Snapnames chargeback scam just shows how sloppy their TOS is regarding seller protection. I’m now no longer selling on their platform until they learn how to secure a domain sale with buyers signing a solid legally binding sales contract or similar paperwork, a photo, 200 point id check etc.”

The sale of domain names using unwarranted funds, will always be an issue for platforms that are not licensed escrows. The funds are guaranteed only by true escrow services with a federal license, such as Escrow.com.

This post is 100% true!

This post is 100% true!

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