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Advantages / drawbacks of being paid with Paypal?


plasticman

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I don't think I've ever been paid (rather than paying) with Paypal, but now the question has arisen with a lens I have for sale, and I know pretty much nothing about the proposed buyer. What issues should I be aware of? And what alternatives might there be for a person buying from the States, when I'm in the EU?

 

Thanks for any help!

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Advantages - it's quick and convenient. Check if the person has a 'verified' account. I would be wary if not.

 

Disadvantages - you will have the paypal fees deducted from the amount paid to you - you must check what they will be.

 

If the seller is a fraudster you may find that you get a chargeback after you've sent the goods (less likely if they are verified). The other risk is that the seller raises some dispute over the goods and paypal will either hold your funds or do a chargeback until they've decided who is at fault. It's common for paypal to hold funds when the seller is new, until the purchaser has received the goods.

 

I use paypal to buy and sell and have never had a problem selling. I have had assistance from paypal protection when a couple of purchases went wrong though - I got my money back.

 

As a buyer, for private internet transactions I prefer to use paypal now, and would be wary if the seller insisted on another method of payment.

 

The best alternative is a direct bank transfer, and wait a few days after you receive the funds, and as the bank to confirm again, until sending the goods, as fraud/chargebacks can still occur. The drawback here is that it may cost the purchaser more, and you may lose a little on exchange rates.

 

Don't accept foreign cheques. They can literally take months to clear the banking system. Although the cheque may have 'cleared' after a few days, your bank has simply credited you with the funds. If the cheque subsequently bounces when they present it to the foreign bank, they will do a chargeback.

Edited by earleygallery
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As the seller, I would not hesitate to accept money in any form (but beware of cheques - they may bounce after a few weeks. If offered one I would stipulate sending the goods after the cheque has been cleared irrevocably) However, as a buyer I will only use Paypal or collect in person, unless I am 100% sure of the seller. I have declined a few attractive buys for that reason.

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As the seller, I would not hesitate to accept money in any form (but beware of cheques - they may bounce after a few weeks. If offered one I would stipulate sending the goods after the cheque has been cleared irrevocably) However, as a buyer I will only use Paypal or collect in person, unless I am 100% sure of the seller. I have declined a few attractive buys for that reason.

 

Hi Jaap, the problem is (certainly in the UK banking system, and therefore I suspect it is the same worldwide) that the bank may take months before presenting foreign cheques for payment.

 

Trust me, I have researched this issue. Your bank will tell you that cheques take X days to clear. Try asking them for a written promise that the funds will be cleared irrevocably and will not be charged back after that point.......

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Well, in that case cheques would be out. As a continental European the last time I saw a cheque was about fifteen years ago... And a cheque to bearer more than twentyfive years ago. Even then I was considered pretty eccentric, even suspicious, for using them.

Edited by jaapv
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The best reason to stick with PayPal is that they have a dispute resolution process should anything go wrong. So go 'by the book' and send the goods recorded delivery, to the PayPal verified address, etc, and it will all be OK. And look at it from the potential buyers point of view. If you insist on asking for payment through Bank Transfer or Moneygram they then think they have no protection so won't trust you, and that brings down the number of people who will bid, and hence your sale value.

 

Steve

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Send the item with some form of signed for delivery, even if you have to pay for it yourself. I've had a few non-signed for deliveries disappear in transit - usually to SE Asia - never had a signed for one go missing. Odd that. I learned my lesson.

 

Jaap cheques were very common in France until fairly recently.

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Were they? I didn't know that. Card-guaranteed cheques were used in Holland up to sometime in the late seventies, personal cheques were always unusual and disappeared during the late sixties and early seventies.

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