What is the Best Method of Payment?

[krstahl]

What is the best method to receive payment for camera items listed for sale on this site? I have a PayPal accout for previous purchases on Ebay, but I do not have a web page so don't know how to use PayPal to receive payment. Any suggestions? What do others on this site use for receiving payment? Certified checks? Money Orders? Personal checks?

[Dr Croubie]

I've sold stuff on ebay and received money via paypal.
For non-ebay transactions it's just as easy, they can send money to your paypal account if you give them your email address.
Once it's in paypal, you can either pay a fee to get the money out to your bank account, or keep it there and use it to fund future purchases...

[krstahl]

Thanks, Dr. Croubie! PayPal tried to explain that on their website, but I didn't understand it, you explained it better. I think PP takes about 1.5%.

[krstahl]

I need to correct my assumption above. PayPal charges for receiving payments is 2.9% per their site as quoted here:
"PayPal fees mainly apply to sellers, who pay a 2.9% transaction fee on the total sale amount plus a $0.30 fee per transaction. If you're a business, see PayPal Merchant Fees for discounted rates and other pricing info."

[HDNitehawk]

It has been 4 years since I bought anything using Pay Pal. However this scam remains and it is completely legal.

If a buyer uses a credit card, they can reverse the charges on you. Pay Pal list these reasons for a reversal:
1. The purchased item never arrived.
2. The item was significantly different than advertised.
3. Their credit card was used without their permission to purchase the item fraudulently.

A buyer who is working a scam, may claim item 1 if you shipped in a method you could not track. Or would claim item 2 and dispute that you sent them the proper item.

While the scam may happen rarely, pay pal will draw the funds out of your bank account to cover a reverse charge. It is better if you take payments that were made directly from the Pay Pal account, or directly from the purchaser’s bank directly through Pay Pal to your account.

Since scams may happen rarely, for me it comes down to how much risk I am willing to take. Small items I don’t mind the risk. Large items I tend to ask for checks and wait on the money to clear.

Here is another scam, fake money orders and checks. The scam goes something like this; you get a check, put the money end and ship the item. Two weeks later you find it was a fake check or money order and the bank takes the money back out of your account.

What is the best for things sold on this site? I would say know your buyer. Knowing they are legitimate can save you allot of heartache. When I was using Pay Pal to receive payments you could specify that the payment had to come directly out of the buyers Pay Pal or Checking account, I am not sure they still offer this, but for a larger item it was the most secure way to go.

As far as the types of payments you listed, all of them can be used in a scam.

[Jayson]

What about using COD with the USPS? I don't know if anyone uses this anymore. I know I have never used it, but I would assume that if someone issued fraudulent payments via COD through the USPS, they would face federal charges. That might deter some fraud schemes. But who knows, people find ways to get around everything anymore.

[HDNitehawk]

From the USPS

Recipient may pay by cash or check (or money order) made out to sender. (Sender may not specify payment method.)

It can not be over $1,000 either.

If they are going to send you a bogus check, this method probably wouldn't change that.

The securist method is this, you meet the buyer face to face at his bank. Get nice fesh hundred dollar bills direct from the cashier.

[krstahl]

I like the fresh hundred dollar bill option, but because I live in a very lightly populate state (Montana) it will likely be hard to find a buyer within driving distance. Although, with the high PayPal rate of 2.9%, I could actually drive a tankful of gas or so for the PayPal charge on a $3k sale. There are plenty of posters on this web site that I believe I would trust based on their longevity on the site, as well as their knowledgible and insightful comments. I guess similar to "buyer beware", in my case it has to be "seller beware". Similar to other sellers on TDP I will need to solicit PMs to my email to set up a deal for cost, payment, and shipping. Right now, I have my camera system listed on Craigslist hoping for local interest. I don't expect any takers because most Craigslist buyers seem to be looking for steal. I know Craigslist is rampant with scammers and so I would only meet a prospective buyer at a neutral location (bank) and not let them know where I live. I have already had one "fishing expedition" by someone on Craigslist trying to get my address for a different product I was selling. I suspect they were looking for a house to "case out" As soon as I asked for a contact number their contact email disappeared and was undeliverable.

[nvitalephotography]

Unfortunately I don't think that these scams are really that rare. I have had both the PayPal scam and the fake check scam attempted on me. Unfortunately the PayPal one did get the best of me. So again, know your seller if you go the route of PayPal, or just wait for a check to clear.


Nick

[krstahl]

Thanks for the cautionary information on PayPal. I just had an offer from my Craigslist posting. It had all the right key words for caution, i.e. in the military, buying for son, for Christmas gift, $100 extra for shipping w/o negotiating, PayPal when my ad said CASH only. I had to turn the guy down, too many caution flags.