Credit Card Payments:
Many buyers prefer paying with a credit card because of the safety net it provides. Most credit card companies will issue a charge back if the item is not delievered or it isn't what the buyer purchased. When accepting credit card payments directly from the buyer contact the credit card company and verify the buyers name and address, making certain it matches the information submitted by the buyer. Once verified, wait to bill the credit card account until after you have shipped the item.Debit Card, Personal Check, Cashier's Check, or Money Order:
Sellers accepting these methods of payment often wait until the payment is received before shipping the item. When accepting a personal check, usually a seller will wait for the check to clear the bank before sending the purchase. Checks and money orders should only be accepted for the exact amount of the purchase. To avoid any confusion, the seller should post the "wait" policy in the item's payment description.Online Payment Services :
Online payment services, such as PayPal, are the most popular payment methods for buyers and sellers. The payment services set up accounts for both parties, then handle the transfer of the money from the buyer to the seller. A fee is charged for the transfer, most often to the seller, although some do charge the buyer. Knowing the cost of payment in advance can help a seller set the minimum bid on the item.Understanding the Terms of Agreement:
When selecting an online payment service, take the time to read the terms of agreement. Find out specifics such as, who pays for the money to be transferred, how much is charged and who pays for transaction reversals or charge backs on credit cards. if you do not understand the service terms and there is no customer service number to call, do not use the service.Privacy and Security Policies:
It is important to understand the payment service's privacy and security policies. Disclosing financial and personal information can be costly unless you have a full understanding as to why the information is being collected, how it will be used and most importantly, how it will be safeguarded.Check Out the Service:
Check to see if the service has been approved by the BBBOnline (the Better Business Bureau Online) or Truste.Sellers can also check with the Better Business Bureau, state attorney general or consumer protection agency, where you live and where the online payment or escrow service is based, to see whether any unresolved complaints are on file against the service. But remember that a lack of complaints does not guarantee that the service has no problems.
High-Priced Items and Escrow Services:
If you are selling high-priced items such as cars, using an escrow service offers security to both the buyer and the seller. The escrow service will hold the buyer's money until the buyer receives the item and decides it has been properly represented by the seller. One the buyer approves the item, the money is released to the seller. If you decide that using an escrow service will be a requirement for buyers, it best to have them accept the terms of the service before they begin bidding on your item.According to the FTC, sellers should not use an online escrow service that does not process its own transactions, but that requires you to set up accounts with online payment services. Legitimate escrow services never do this.
Watch Out for Pushy Buyers:
If the buyer insist on using a particular online payment service, visit its web site and contact the customer service number. If no number is available, do not use the service. If the service states it is a government affiliated agency, proceed with extra caution. According to the US Federal Trade Commission (FTC) this is a red flag that it is a scam.Wire Transfers:The FTC discourages the use of wire transfers because of the vulnerability of fraud to the buyer. Many auction sites now prohibit the use of wire transfers as a method of payment. As a seller, using only this method of payment could turn potential buyers away.
