Method of Payment |
Description/Comments |
Cost to Buyer |
Con |
Pro |
Personal check |
Sellers usually wait for personal checks to clear |
Envelope & stamp |
Slower receipt of goods while seller waits for check to clear |
Convenience |
Postal Order |
Available at post office; sellers can cash immediately at any post office |
80cents plus trip to post office; envelope & stamp |
|
Faster receipt of goods |
Money Order |
Available from banks; sellers can cash immediately at their own bank |
$3 or more plus trip to bank; envelope & stamp |
|
Faster receipt of goods |
Credit Card |
Beware of giving credit card information to unknown parties |
Free |
Many online auction sellers don't accept credit cards |
Faster receipt of goods. Limited protection from credit card company |
BidPay (privately-owne d company) |
Allows buyers to purchase money orders online with a credit card (Visa, Mastercard & Discover)
Limitations: Can only be used for online auction items, and only for items costing up to $500 Reviewed in AuctionBytes-Update Issue #6 |
$5 plus 2.25% of item cost over $100 |
Limited to major auction sites, including eBay, Yahoo, Amazon.com |
Convenience. Very fast receipt of goods (BidPay notifies seller that money order is on the way) |
PayPal (owned by X.com) |
Buyers can purchase items or accept payments once they open an account (you must give PayPal a credit
card number to register). You can fund your account with a credit card (Visa & Mastercard), by making a direct deposit from your bank account, or by sending a check. You can also use PayPal for
non-online-auction-related transactionsLimitations: Both parties must have a PayPal account Reviewed in AuctionBytes-Update Issue #8 |
Free |
Money in a PayPal account is non-interest bearing and is not insured. Seller must have PayPal account. You cannot
withdraw money funded by your own credit card |
Convenience. Faster receipt of goods |
ProPay Web Pay |
Seller enters buyer's email address, final bid amount, and a short bid description into a form on
ProPay. Buyer receives email with unique URL to a secure site on ProPay, where she enters her credit card (Visa & Mastercard) information. ProPay then deposits money into seller's account. |
Free |
Seller must have ProPay account |
Convenience. Faster receipt of goods. Limited protection from credit card company |
ProPay Exchange Cash |
Buyers send money from their ProPay account to the sellers' ProPay account |
Free |
Money in ProPay account is non-interest bearing and is not insured. Buyer must have ProPay account; if
there is no money in your available account, your credit card will be charged |
Convenience. Faster receipt of goods |
Billpoint (eBay partner) |
Used for eBay auctions only. Seller enters sale information into form on Web site; the buyer receives an
email to make payment through Billpoint with credit card (Visa, Mastercard & Discover) |
Free |
Limited to eBay auctions. Seller must have Billpoint account |
Convenience. Faster receipt of goods. Limited protection from credit card company |