VENDOR FAQ

How to start selling, protect yourself against scam and make money on Paxful

How to start selling bitcoin?

Learn about setting up your first offer and creating profitable adverts

Learn about how to start

Anti-scam & security guidelines

Learn about methods to protect your account from scam and fraud

Read more now

Verified Vendor Badge

Learn about what it means to become a verified vendor with Paxful

Learn about Verified Vendor

Being a Paxful vendor can be very profitable if a few basic rules can be followed.

  1. You as a Vendor accept any and ALL Risks and liability for trading. It is up to you to protect yourself.
  2. No brokering is allowed. This applies to gift cards especially.
  3. No off escrow trades allowed. No giving them your contact info for external communications, Paxful escrow must be used at all times else you will be banned. No exceptions.
  4. You must be responsive to buyers, if you are not at your computer then please click away status or take down all your offers. A low response score will reduce your sales dramatically as the system will send you far less business if you are not responsive to your buyers chat messages.
  5. You must maintain a civil tone with your customers at all times. No foul language or abusive tone is allowed.
  6. You must have full offer terms in simple short bullet points. Your buyers should know what they must provide and your terms for dealing with them. Be concise and accurate and use bullet points.
  7. You must have full simple trade instructions of exactly what you want them to do. Use bullet points and keep it short and sweet.
  8. Provide your customers with helpful aids and examples if necessary. For example if you require them to upload a selfie with photo id then put a example picture (with face and details blurred out.

Stick to the above rules and you will make a very profitable living on Paxful.

Selling bitcoin on Paxful can be a very profitable business you can run from laptop anywhere in the world.

Many vendors make upwards of five figures a month in profit and some who have written bots or scaled up their operations do six figures in profit monthly.

To begin you must

  1. Make an account.
  2. Create your first sell offer and accept the terms of service as a Vendor.
  3. Fund your wallet with enough bitcoin to cover the bond and sales.
  4. Wait for your first customer and complete the trade.

Decide how you want to be paid

The first thing you must do is decide how you will be paid for bitcoin. Different payment options carry different risks and potential profit margins. Gift cards for example can carry higher margins because they are risky for vendors to take and often harder to turn back into bitcoins while Western Union carries lower margins because it is safe for vendors to taker and it is easier to turn cash into bitcoin. There are currently over 150 payment options available on Paxful and you can even add your own on the create offer page and it will be available once authorized by a moderator. Please see our forum at https://talk.paxful.com

I Opened A Trade, Buyer Doesn't Respond. Will My Bitcoins Be Held Forever?

No. Your bitcoins will be freed from escrow once you file a dispute and a Paxful moderator awards them back you you. You the Vendor can file a dispute a half hour after a trade begins. Verified Vendors get an advantage here.

How to secure my trades?

Secure your Account and Trades

Using 2Factor Authentication is a MUST for vendors on both login and send out as well. Please read our security guide first. Once you secure your wallet you must begin the hard work of learning to secure your trades. Every payment option has different risks and things you must check for. For example,

  • PayPal accounts of buyers should be verified and you should always ask for a selfie with ID to make sure it is not a hacked account. Ask them to send as friends and family and not to mention bitcoin in the notes. Many vendors will call PayPal first and tell them they are using their account to sell bitcoin, naturally the vendors account should also be verified.
  • Amazon / Itunes Gift Cards should also come with a receipt showing they were purchased with cash and not a debit card, else they can be charged back and you will lose the credit and possibly get your Amazon or Itunes account shut down. Make sure that the cash receipt matches the card as well and of course ask them to upload the back of the card scratched off. Always use the gift card right way or else they will!
  • Bank Cash deposits should always ask for a copy of the receipt showing it was done as cash. Beware because certain banks like BOA allow them to take the cash back if they have the receipt for one business day.
  • There are many more ways to pay and each has it’s own rules. 

What Is The Time Frame For The Buyer To Send WU And For Me (Seller) To Accept It And Marked As Complete ?

That is up to you to set the time limit for a trade. You can do so by editing your offer.

Should I Deal With Someone Who Has A +10 Reputation Or Go For Higher To Avoid Being Scammed?

A reputation of +50 is best also look for the Verified Vendor badge. Be sure to check how many trade partners the person has, the more partners the better, otherwise their feedback may be fake.

What Insurance Do I Have From You That My Bitcoin Will Not Be Lost For Western Union.

Absolutely none. You take all risk for your bitcoins when you sell them.

What If The Buyer Never Sends The Payment Or Sends It And Refunds Before I Cash It Up Or Pretends To Send It And Marked The Payment As Complete? How Do I Prove The Payment Was Never Sent?

As a vendor you accept all liability for trades. Do not release bitcoins until you are 100% sure you have the payment. If a chargeback happens after you release the escrow then use the “report chargeback” button. a moderator will investigate and if the scammer has bitcoins you will get them back otherwise you will get a dump of their info to pursue them yourself.

What Is The Time Frame For The Buyer To Send WU And For Me (Seller) To Accept It And Marked As Complete ?

That is up to you to set the time limit for a trade. You can do so by editing your offer.

Is Western Union A Safe Method For Accepting Payment ? Can Any One Scam Me?

Western Union cannot be reserved if they paid with cash. Be sure to collect full payment before releasing the escrowed bitcoins.

How Will Bitcoins Be Released After Buyer Marks Payment Complete?

When a buyer marks a payment as complete it only keeps the trade from expiring automatically. You as the vendor must explicitly release the bitcoin from escrow only once you have verified payment. Otherwise the bitcoins will remain in escrow.

How do i then buy this bitcoin from paxful to send to the person buying from me?

As a vendor the cheaper you get your bitcoin the better, this means buying via bank cash deposit or Western Union on Paxful or from an exchange like Bitstamp, Kraken or Coinbase. Go to your Paxful Wallet and find your address and send the bitcoins there. You will have to put up a 0.2 bitcoin bond to begin selling, this protects buyers from unknown new vendors. Once you do this your offers will go live and you will be ready to sell.

Where to store the bitcoin that i will send to my buyers. Should I store the bitcoin in Paxful or in my bitcoin wallet?

Always send bitcoin to your Paxful bitcoin wallet and it will automatically go to escrow when you get a new sale.

How do I send bitcoin to people so I am safe and do not break your Terms of Service?

You cannot trade outside of escrow, this means do not contact them outside of paxful nor give them your contact info outside of paxful. all bitcoin must go through our escrow.

What does my "success score" mean and why is it important?

A vendors “success score” also called “closing score” is the percentage of trades they complete. For example if they get a total of 100 trades and only successfully complete 20 of them then their “success score” is 20%. The higher it is the more sales you will get, if it drops to low you will get fewer and fewer trades.

How to send bitcoins using Paxful Wallet?

You can send bitcoins out and make payments at anytime. Click the SEND button. Type in the amount you want to send in either bitcoin or dollars. It shows your balance in bitcoins by default but you can change it anytime by clicking the “Switch to Dollars” Link and back to bitcoin as well. Paste in the bitcoin address you got from the person you are paying. You paste it in where it says “bitcoin address” It looks like a very long scary password and is case sensitive. Click send and then click confirm.  

BE CAREFUL AS ONCE YOU SEND BITCOIN YOU CAN NEVER GET IT BACK IF IT WAS A MISTAKE!

How do I secure my account?

In Paxful, we use Two Factor Authentication.

Hackers often hack your email account (gmail) and use that to reset your Paxful password, they login and send out your bitcoins. This is what happens 99% of them time and people have no idea. With 2FA it becomes easy to stop because there is an additional layer of security to overcome so even if they know your password they cannot login and cannot get your bitcoins.

2FA can be done through SMS text message or via Google Authenticator or Authy, We suggest Google Authenticator.

First download the Google Authenticator app. Iphone Android

Second Turn on 2 FA on Paxful here  and scan the code with your phone.

You can use 2Fa for Login AND bitcoin send outs. Just bring up the app and get the code every time to login or send out.

How to secure my trades?

Secure your Account and Trades

Using 2Factor Authentication is a MUST for vendors on both login and send out as well. Please read our security guide first. Once you secure your wallet you must begin the hard work of learning to secure your trades. Every payment option has different risks and things you must check for. For example,

  • PayPal accounts of buyers should be verified and you should always ask for a selfie with ID to make sure it is not a hacked account. Ask them to send as friends and family and not to mention bitcoin in the notes. Many vendors will call PayPal first and tell them they are using their account to sell bitcoin, naturally the vendors account should also be verified.
  • Amazon / Itunes Gift Cards should also come with a receipt showing they were purchased with cash and not a debit card, else they can be charged back and you will lose the credit and possibly get your Amazon or Itunes account shut down. Make sure that the cash receipt matches the card as well and of course ask them to upload the back of the card scratched off. Always use the gift card right way or else they will!
  • Bank Cash deposits should always ask for a copy of the receipt showing it was done as cash. Beware because certain banks like BOA allow them to take the cash back if they have the receipt for one business day.
  • There are many more ways to pay and each has it’s own rules. 

Paxful verified vendors enjoy many benefits:

-Increased customer trust.

-More traffic to your offers.

-More trust from moderators and support.

-The ability to start disputes right away.

-A chance to try new Paxful features before anyone else.

-Many more benefits are coming.

The requirements to become a Paxful Verified Vendor are:

-A success score over 33%

-A high RESPONSIVENESS score

-Over 50 trades with 20+ partners

-Must be a USA, Canadian, Australian or European citizen. This is so we have legal recourse to prosecute for any fraud to protect our buyers and the reputation of Paxful and other verified vendors.

 

To become a Paxful verified vendor we need the following:

-High resolution picture of passport or ID

-Proof of address such as bank statement or utility bill

-A video of yourself stating the following

“I submit my full legal identity documents to be a Verified Vendor on Paxful and accept all liability for my trades. I acknowledge that Paxful reserves the legal right to sue in criminal court for any stolen funds.”

You must also show your passport or ID into the camera in your video.

Please submit your all necessary documents on your vendor dashboard. It can take up to seven days to process the application. Anyone faking documents will be banned instantly.

Thank you

-Paxful Team