Paypal is the preferred payment
choice for many buyers because Paypal allows buyers to pay instantly for eBay
purchases. In this article, we will review using Paypal on eBay from the
buyer's point of view.
Since eBay purchased Paypal, it
has become even easier for buyers and sellers to complete auction sales. Buyers
like Paypal because they can quickly and easily pay online. In fact, some
bidders will only bid on items they can pay for with Paypal.
One thing that confuses buyers
is some sellers accept Paypal payments through credit cards, while others only
accept transfers. You see, with Paypal a buyer can fund the transaction in
three ways. This can confuse buyers, and cause problems.
Here's the three ways to fund a
Paypal transaction:
1. Transfer from a bank account
tied to the user's Paypal account.
2. Transfer from a Paypal
balance.
3. Payment from a Credit Card.
The first two options cost
Paypal nothing in processing fees. Credit cards cost about 2 percent to
process, and Paypal passes this cost on to merchants. Some eBay sellers do not
want to pay this fee for service, so they only accept payments by transfer.
This confuses buyers who win auctions and assume a credit card transaction is
fine.
Paypal wants users to transfer
funds, and not use their credit cards. Not only is this cheaper for Paypal, but
there is no risk of a chargeback.
A chargeback is when a buyer
reverses the charge on a credit card by contacting his bank. Most, maybe all,
banks will reverse a credit card charge with little or no investigation if the
card holder contests the charge. The money is taken right out of the merchant's
bank account -Paypal in this case.
Paypal makes it difficult to
use a credit card to send money through Paypal. This is done making the credit
card payment option difficult to find, and warning users about the
"risk" because you cannot buy Paypal's insurance.
With a credit card purchase,
you do not need Paypal's insurance. Your bank will reverse the charge free if
the seller scams you.
One other way Paypal makes it
hard for users to instantly send money with a credit card is by limiting the
total amount you can charge.
The first time I tried to use
Paypal to pay for an eBay auction, I was unable to use my credit card because
the amount was above the limit. That was a $700 item. I think the single item
limit is $500, but could not find confirmation of this. The lifetime limit, or
total amount you can send all eBay sellers with a credit card is $2,000.
If you wish to pay for an item
with a credit card through Paypal you should confirm the seller takes card
transactions. This can be done reviewing the auction and looking for the credit
card logos adjacent to the Paypal logo in the payment methods screen.
Whenever you pay for an eBay
auction through Paypal, you should check the seller's Paypal status. Do not
send large amounts to unverified users, and watch that the user's address
matches the auction details.
Paypal is an easy way to pay
for your eBay purchases.
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