What is the best way to handle net purchases?

[Giraffe]

I'm getting confused, and a search didn't yield any help. I'm having trouble figuring out the best way to handle sales over the net, between TB'ers, etc. From a seller's point of view, I'm being told by pros that cashier's checks and bank checks are very risky because sometimes they don't bounce for weeks. I read elsewhere that Western Union should be avoided, PayPal gets expensive on the large sales, what should I do? What is the safest way to get paid, especially when doing larger items?

[ldervish]

There used to be a sticky thread somewhere in TB that dealt with safe trading practices. It is worth reading if you can find it. Phony cashier's checks and business checks are such a problem anymore that one of the local banks has a warning placard on the counter. Scammers are rampant especially on more expensive stuff. Most people are trustworthy, most transactions are good but protection is still the order of the day. And even then, as with anything in life, bad things occassionally happen.

Actually, I don't have much problem with personal checks. They are being processed electronically between many banks nowadays, so a 10 day hold on the merchandise is usually plenty of time for it to bounce if it's going to. Most people don't want to wait for their stuff though so they'll want to pay another way.

If you are the seller, accepting US Postal Service money orders is pretty safe. When you cash them at the Post Office rather than depositing in a bank, you have to present ID and USPS verifies elements of the M.O. before giving you the cash. If there is something wrong with the M.O., you don't get the cash and therefore you don't ship the goods. Depositing in a bank introduces an element of uncertainty b/c it may be some time before the bank finds out if the M.O. has a problem, and you may have already shipped the goods - you end up losing the goods and having to pay the money back to the bank. Possible headache at the Post Office: timing i.e. when to present it during the business day to be sure there is enough cash on hand to give you, because if there isn't enough you have to take your chances again later. Visiting a busy branch is better in this regard, or pre-arranging with the station manager.

Buyers of these money orders have to pay USPS in cash, and I'm pretty sure they can be issued in amounts up to $1000 for a couple bucks so it's not a big deal. And they have an international version that can be sent between the U.S. and certain other countries with similar handling of purchase and redemption, although amount limits may be different and only the specific countries can be involved.

Regarding Paypal, many sellers who use it just allow for it in the price, add "handling" fees, or offer a discount for other payment. FWIW, I have had mixed success resolving transaction problems when Paypal was the intermediary, and I found their resolution process deceptive, cumbersome and aggravating.

[pointbass]

I agree that personal checks have been the easiest route for me to go. Works well, especially if you have an decent working relationship with your local bank. They can almost always tell you immediately if the funds are available in the issuer's account and I also agree that the 10 business day clearing time is much more than adequate in most cases.

I also like USPS for the reasons stated ^^^^. Another case where you'll know right away if the USPS MO is good. While I personally haven't had any issues at all with PayPal I have heard of far too many cases where resolution of a problem gets all mucked up.

For TB transactions I'm fine with Paypal, since I've always known the buyer to some extent .... Ebay is a complete wildcard for me ....

[baba]

USPS money orders. Bring them the piece of paper and they will either give you cash or tell you it's fake. Don't send the gear until you have cash in hand. Simple.

[Giraffe]

Thanks a lot for the replies!

I am gravitating toward the postal money order. My bank (which is not a bank, but a credit union) slides into the sideways shuffle when you ask them "How do I know if a deposited check has cleared or bounced?" I believe that they don't want to be bothered doing a few seconds worth of research in their own computer system, so they usually respond "Five days should be sufficient, just wait five days and if you haven't heard from us assume it is cleared." The should and assume render that statement pretty much worthless to me.

I think I will try to get the postal money orders from now on. They are cheap, and seem to be quicker for both the seller and the poor fellow anxiously awaiting his bass! I have read some of the PayPal dispute policies, and there are so many weasel words in there that it looks pretty toothless in most circumstances.

[lefty007]

Originally Posted by baba

USPS money orders. Bring them the piece of paper and they will either give you cash or tell you it's fake. Don't send the gear until you have cash in hand. Simple.

+1.

Or Paypal. It's very convenient for buyers that want to pay with credit card, and if the buyers meets the requirements (verified, shipping to a confirmed address) you are covered against fraud later on (not 100% safe, but worth it).

Another options are:

-Wire transfer. 100% secure for you.
-Western Union. 100% secure for you, the seller. You get cash in hand. WU is not secure when you are sending money, but receiving it, you get cash in your hands.

Don't:

-Don't ever ship anything unless you have cash in your hands or in your account.
-Don't accept personal checks, or cashier's checks from small/unknown/foreign banks.
-better yet, avoid any checks.
-most legit money orders can be verified by the issuing bank.


As a buyer:

-Don't send money unless is through Paypal and the seller is verified - and you meet Paypal's requirements to be protected as a buyer.

-If you decide to send money to a stranger without any type of service in between, make sure you get to know the buyer a bit, although that is no guarantee. Check for his feedback here, ask for an eBay member name to check feedback there, get a phone number, talk to the person. . . Don't just exchange a couple of e-mails and send somebody $1000.

-I never buy anything unless there is some type of buyer protection involved. Never. In this day and age, the only practical services available for that are eBay and Paypal.

I've been buying and selling stuff over the internet for about 7 years, and I have never been ripped off, because I've always followed these rules.