Transferring Points Risks

[LCoulter]

I am a new DVC member as of May, 2008. I have already had to borrow points (40) to book vacation #1 and it looks like I will need to borrow points (25) to book vacation #2. So I am thinking about looking for a points transfer next year but am trying to understand the risks involved. With the economy the way it is, it would also be nice to understand the risks involved if we were the ones doing the transfer.

I see that some use PayPal as the method of payment which seems easy and convenient. My understanding is that once two parties agree on the price, number of points to be transferred and the method of payment (is there anything else?), they call MS and have a three way call and the CM does the transfer. So once the transfer is done, then the PayPal payment is sent?

Now once the payment is sent, the seller can’t pull the points back, I assume?

Now if we were the ones doing the transfer and MS transfers the points, I assume there is nothing stopping the other person from just not sending the payment? Does the CM wait on the phone to make sure the PayPal payment is received? And if not, can the CM pull the points back? If it looks like the payment was sent, can the buyer then pull the payment back (I’m not familiar enough with PayPal to know if you can do this and I have never had a reason to need to)?

Has anyone been burned doing a transfer? Are there any precautions that I should take?

Thanks.

 

[jerseygal]

Technically, money cannot change hands is my understanding..

Three way call from MS is great, but I would imagine they can't monitor the exchange of money..Is this correct?

What protection would the seller have?

Much thanks!

 

[chalee94]

Now if we were the ones doing the transfer and MS transfers the points, I assume there is nothing stopping the other person from just not sending the payment? Does the CM wait on the phone to make sure the PayPal payment is received?

you really don't want to ask MS to wait until the paypal is received...

it actually is against the rules to accept compensation for a transfer.

 

[LCoulter]

So people will transfer me points out of the goodness of their hearts, free?

I'm sorry, just kidding.

If it is against the rules, then why are there posts on the trade/rent thread for dollar amounts for transfers? Is it just that MS "looks the other way"?

So the transfer is done and then you just have to hope the buyer is honest?

 

[chalee94]

If it is against the rules, then why are there posts on the trade/rent thread for dollar amounts for transfers?

that does seem bizarre. i suspect people are breaking the rules.

Is it just that MS "looks the other way"?

MS doesn't want to know.

So the transfer is done and then you just have to hope the buyer is honest?

the point transfer is final. if something goes wrong, disney will not get involved. you would still have legal recourse against the other party...but there is risk involved.

 

[bookwormde]

I have used the 50% paid after agreement is made and 50% after transfer is made and confirmed.

bookwormde

 

[disneynutz]

Looks like it's time to buy a small add-on.

 

[LCoulter]

Looks like it's time to buy a small add-on.

Yes, I guess that is the best option. Are there any webcasts or shows scheduled for next year where you can possibly get a good deal on a small contract?

 

[5forDiz]

Yes, I guess that is the best option. Are there any webcasts or shows scheduled for next year where you can possibly get a good deal on a small contract?

If you set up 3 way call with yourself, member transferring and MS when MS tells you that the transfer is complete then it's a done deal and the transferring member cannot take those points back out of your account. Any discussions that you have with the member about any 'arrangement', etc. as you asked about above should be private and should not involve MS. If you think you will regularly be short points and are not comfortable with transferring points in from another member then it probably makes sense to add-on.

Check out dvcnews.com for current pricing and incentives. You can also shop the resale market for a small add-on but that will have closing costs/fees as well and might not be your best option; if you add on directly through Disney presently there aren't any closing costs/fees for add-ons & you can purchase as little as 25 pts with cash or 50 pts with their financing.

 

[Cmbar]

If you set up 3 way call with yourself, member transferring and MS when MS tells you that the transfer is complete then it's a done deal and the transferring member cannot take those points back out of your account. Any discussions that you have with the member about any 'arrangement', etc. as you asked about above should be private and should not involve MS. If you think you will regularly be short points and are not comfortable with transferring points in from another member then it probably makes sense to add-on.

Check out dvcnews.com for current pricing and incentives. You can also shop the resale market for a small add-on but that will have closing costs/fees as well and might not be your best option; if you add on directly through Disney presently there aren't any closing costs/fees for add-ons & you can purchase as little as 25 pts with cash or 50 pts with their financing.

Yeah, what they said Good answer!

 

[Y-ASK]

It may be difficult to find someone willing to transfer only 25 points. You can only transfer one time (either into or out of) during your use year so someone looking to transfer 100-200 points would not accept this small amount of points transfer offer. You might want to think more about an add-on if you think your point transfer total is going to be small year to year. Remember that once a year thing is the same for your account also. You get a transfer in and that's it for the year for you...

Y-ASK

 

[MrShiny]

Another way you can do it is to rent points for just the first or last night of your stay. This avoids the point transfer issues, but then means you have 2 reservations to manager - one made by you and one made by the other member. You'll also want to make sure you get the same room and view, otherwise you'd probably have to physically switch rooms.

 

[5forDiz]

You also may want to book some nights for cash through MS and it is possible that 25% member discount may be available as well

Don't know if you're driving distance to Chicago's Doorway To Dreams but sometimes they've got some good incentives; also, NY DTD on Long Island is scheduled to open later this week last I heard.

Best wishes

Yeah, what they said Good answer!

Have yourself a good day

 

[skunk]

If you set up 3 way call with yourself, member transferring and MS when MS tells you that the transfer is complete then it's a done deal and the transferring member cannot take those points back out of your account.

Any additional buyer risk once transfer is confirmed with MS?

 

[bookwormde]

skunk,

not once they are confirmed to be transfered they only have the risk that would go along with any of your non transfered points (expiration etc)

bookwormde

 

[castleri]

It seems there is more risk for the seller than the buyer. Unless you get payment up front there is nothing to keep the buyer from not paying and you are out your points.

 

[DisneyDreamers2007]

I just completed a transfer, 1/2 the cost was paid the day before and 1/2 the payment sent after confirmation of points transferred. Everything went very smoothly!

Since you are dealing with other DVC members it seems a little safer, especially if you get their phone number & email, exchange member numbers, etc. And you could ask for references or only deal with those with a higher post count/history here on the Disboards. Another way would be to do the transaction through ebay & paypal/credit card, so if there is a problem you have a 3rd party to intervene.

From what I have seen, problems of fraud are rare here on the Disboards trade/rent/transfer forum. Just do your best to find out information about the buyer and make sure you are totally comfortable before you complete the transaction.

 

[dianeschlicht]

As a matter of fact, I DID transfer a point or two free to someone this year, and we did NOT have to have a 3 way call. I jsut needed their account information so I could make the transfer in, and it was done in one easy call.

 

[mjy]

As a matter of fact, I DID transfer a point or two free to someone this year, and we did NOT have to have a 3 way call. I jsut needed their account information so I could make the transfer in, and it was done in one easy call.

I've done that, too. If I had some extra and they were not a lot and I noticed someone needed a few, what the heck . . .

There were a couple of times that I acquired extra points from another owner. They transferred the points and then I paid them, once on PayPal and once via automatic bank draft. Another time I paid first and then they transferred.

I have noticed many people will only transfer with someone who has been posting for quite a while. Once they get to feel comfortable with the other person on this board, people don't appear as squeamish to trust each other with the transfers.

There's always a risk, sure. But long-time posters (and non-rabble-rousers ) seems to trust each other much easier.

 

[mmjm]

I have transferred points many times, the biggest transfer was for close to $4000.00. I always require full payment prior to the transfer because the seller has the greater chance of getting stuck. If the buyer uses a credit card or paypal transfer, paypal gives the buyer some recourse, if the buyer stiffs the seller he can't call Disney and Paypal is not going to help.