The Beginner’s Guide to Flippa: Part 3

In the third installment of the Beginners Guide we’ll focus on the three payment options that are available to users on Flippa: Flippa Escrow, Paypal and Escrow.com. All other charges on Flippa will also be covered.

These posts are interactive so if you have any suggestions or find any features on Flippa or Dealflow particularly challenging or confusing then please contact us at [email protected] You can contact me directly at [email protected] We would love to hear your feedback!

Payment Methods

Sellers have three payment methods they can choose to accept.

  1. Flippa Escrow
  2. Escrow.com
  3. PayPal

 

Flippa Escrow

Pros: Trustworthy and secure

Cons: Takes more time to complete than PayPal (3-7 days usually but can take longer depending on your bank).

Flippa Escrow is the recommended and most trusted of the three available payment methods. There are no escrow fees apart from a 2.9% Credit Card surcharge for Buyers with Flippa Escrow. Success Fees are automatically taken out of Flippa Escrow payments so you never have to worry about paying it separately. There is a flat $25 international wire transfer fee if the Seller opts to have funds placed into their personal bank account and is located outside Australia, New Zealand, and the USA. The Seller can instead opt to receive payment into their PayPal account, where Flippa charges no fees but PayPal typically levies their own. The Seller can choose how to receive their funds at the beginning or end of the transaction in the Flippa Escrow screen.

For the Buyer, payment can be initiated from the Start Flippa Escrow button in the Sale Completion Area (provided the Seller has selected Flippa Escrow). Wire transfers to Flippa Escrow may be started from the Buyer’s bank account at any time once the transaction has begun, and debit/credit card payments from the Buyer can be accepted when the Seller is outside of India, Indonesia, and Pakistan.

The Flippa Escrow transactions usually take between 3-7 days to complete. This depends on a number of factors, including different time zones, delays from the Buyer’s bank, intermediary bank fees, and if either customer has been offline for a day or two, etc.

 

The Flippa Escrow transaction process:

– Once the listing has ended and has a winning bidder, a Sale Completion Area (SCA) is created and from there the payment can be initiated.

– The Buyer would click on Start Flippa Escrow (if available).

– First, the Buyer is instructed to make the payment into Flippa Escrow. The payment must be the full transaction amount and typically must be paid in one installment; split payments via a credit card are not possible. Payments can be made using a wire transfer, Visa or Mastercard debit or credit card. Buyers have to make payments via wire transfer when sending funds to a Seller  who is based in India, Indonesia, and Pakistan.

– Once received, the funds are then securely stored in the Flippa Escrow vault and the Seller will be instructed to transfer ownership of the asset(s) to the Buyer.

– When the Buyer confirms that assets have been received and they are as expected, they will then release the funds to the Seller.

– The Buyer and Seller should define a set inspection period after the Buyer receives the assets to confirm they are as expected before the Seller requests the release of payment.

– Once the funds in Flippa Escrow are released to the Seller, they should arrive in the Seller’s account within the next few days, but can take longer depending on the Seller’s country of residence.

– If the Buyer becomes unresponsive and does not release payment or if the Buyer has paid into Flippa Escrow and the Seller is unresponsive, a dispute can be filed and our Marketplace Integrity team can review and potentially release or refund the funds in certain circumstances.

 

 

Paypal

Pros: Quick, easy and familiar

Cons: Little to no security, Flippa cannot gain access to information and it is limited to certain countries

PayPal is an American company operating a worldwide online payments system. Online money transfers serve as electronic alternatives to traditional paper methods like checks and money orders. With Paypal that there is NO escrow or third party involved.

Paypal is the fastest and easiest payment method of the three available on Flippa but, using PayPal is the least secure purely because we are unable to monitor the sale and keep assets safe.With Paypal that there is NO escrow. PayPal transactions are usually between Buyer and Seller – no third party interference – so be sure to ask questions and build-up a level of trust before sending/receiving funds/online assets.

PayPal is unavailable in Ukraine, Pakistan and Israel. To check if your country of residence accepts PayPal then please reference the PayPal website for a complete guide. Feel free to contact their Support team for more information. PayPal also offers phone support.

 

 

Escrow.com

Pros: Secure and safe.

Cons: Higher/variable fees and can takes longer than PayPal.

Escrow.com is another trusted form of payment that works in a similar way to the Flippa Escrow process. Escrow.com reduces the risk of fraud by acting as a trusted third-party that collects, holds and only disperses funds when both Buyer and Seller are satisfied.

Escrow.com is secure but like Paypal is independent of Flippa which means we do not have direct oversight of the transaction. We offer a 20% discount on Escrow.com fees when the transaction is initiated from the Flippa Sale Completion Area.  For more information on Escrow.com, including a fee calculator, you can visit their website:

 https://www.escrow.com/what-is-escrow

 

    • Our Payment Recommendation:We wholeheartedly recommend Flippa Escrow because:
      • Assets are kept safe until payment has been made
      • Funds are secure
      • Agents have access to transaction details so we can answer more questions regarding the sale
      • We can issue refunds when applicable
      • As a Seller you can opt to have funds placed into your PayPal account (instead of bank account ) which will completely avoid the $25 wire transfer fee.
      • Flippa Escrow is free to use

 

 

Buyer Certification Hold

We receive a lot of tickets through Customer Support regarding the $5 Buyer Certification Hold. The Buyer Certification hold is a check conducted by Flippa to make sure you have a functioning bank account/credit card that will allow you to send/receive funds while you are buying/selling on Flippa. You will be automatically prompted by the system to get Buyer Certified when you place a bid over $200.

If you do not have a credit card but wish to bid over $200 you can get Buyer certified by sending us a photo of your ID and another photo of you holding the ID. For more information, contact our support team.

The hold is not a charge. We do not remove any funds from your account. The duration of the $5 hold should not exceed a couple of days depending on your bank and which country you’re living in. Some countries’ banks operate much slower than others so it may take time to see any charges.

 

 

Premium Buyer Certification Hold

 

Buyers who place bids of over $2,000 will have to pre-authorize their credit card/bank to be Premium Buyer Certified. The hold is increased to $500 for Premium Buyer Certification but works the exact same way as the $5 hold.

Unfortunately you can not be Buyer Certified in advance. You will be prompted by the system  you are bidding 5k+ on a listing. For any questions regarding Buyer Certification please contact our support team – [email protected].

 

 

 

Success Fees:

The Success Fee on Flippa is 10% of the total sale. The Success Fee is mandatory and is non-negotiable. With Flippa Escrow and Escrow.com the Success Fee will be automatically deducted from the total amount. Sellers who opt to use PayPal must select ‘Pay Success Fee’ from the SCA,.

All Sellers will be invoiced for Flippa Success Fees but please remember that the fee will be automatically deducted when using Flippa Escrow or Escrow.com. Therefore, Sellers using these methods can ignore any invoice awaiting payment. Failure to pay Success Fees will result in a suspension or a permanent ban. Users are notified when a Success Fee is overdue.

Success Fee rates may range between 12.5-20% for a Seller using Dealflow or in-house Domains Brokerage. The Success Fee percentage will be negotiated and determined by both Seller and Broker at the beginning. For Domain Brokerage you can expect to pay a mandatory 10% Success Fee if sold on the marketplace, and 15-20% for account management / brokerage. Follow the table below for more information on Dealflow Success Fees.

 

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The only other transactions to expect while using Flippa are paying for Listing Fees or Upgrades either of which can be paid by credit/debit card (we do NOT accept American Express) and PayPal. A complete breakdown of listing options and fees can be seen in the Beginners Guide:Part 1. 

The Beginners Guide to Flippa: Part 1

 

Feedback

Leaving Feedback is one of the most crucial parts to the Flippa platform. Feedback on Flippa allows buyers and sellers to share their experiences in an open environment.  Flippa does not edit or censor feedback comments because we believe it brings a very reliable element of truth and trust to our marketplace. However we sill step in if there have been false claims made or the content of the comments breach Flippa T&C. To report any unfavorable comments please contact a member of our team- [email protected]

 

We don’t allow feedback comments that contain:

      1. Spam, advertising or other commercial content, including links to such content
      2. Obscene, racist or vulgar language
      3. Feedback not related to this sale, but to other transactions
      4. Personally identifying information such as phone numbers or addresses
      5. Political, religious or social commentary
      6. Content that is fraudulent, misleading or deceptive
      7. Content that refers to a Flippa dispute or investigation

 

Every user will receive an invitation to leave feedback 7 days after a sale has been completed. Each user will be invited by a link sent via email. The option to leave feedback will be available for 60 days and will expire after that. For more information: https://flippa.com/feedbackpolicy- 

 

In the next Beginners Guide we will delve into the dispute process on Flippa. As mentioned before if you have questions or recommendations on what should appear in the next Beginners Guide then please do not hesitate to get in touch- [email protected] / [email protected]

 

We would love to hear from you!