Method of Payment

Description/Comments

Cost to Seller

Con

Pro

Personal check

Sellers usually wait for personal checks to clear

Free

Seller must wait for check to clear.

Possibility of bounced check which incurs bank fee

Postal Order

Available at post office; Sellers can cash immediately at any post office

Free

None

Can cash immediately; No risk

Money Order

Available from banks; Sellers can cash immediately at their own bank

NOTE: One seller informed us that she received a counterfeit certified bank check; the bank noticed 3 weeks later, and she was out the money and the merchandise

Free

None

Can cash immediately; No risk

Credit Card

Only merchants can accept credit cards

Credit card company takes a percentage of sale price

Buyers can later dispute the charge

Convenience

BidPay (privately-owned company)

Allows buyers to purchase money orders online with a credit card (Visa, Mastercard & Discover); BidPay notifies seller that money order is on the way

Limitations: Can only be used for online auction items, and only for items costing up to $500

http://www.bidpay.com/SellerFa q.htm

Reviewed in AuctionBytes-Update Issue #6

Free

None

Can cash immediately; No risk

Sellers can register with BidPay so they can check on present and past orders

PayPal Personal Account (owned by X.com)

Sellers can accept payments once they open an account (you must give them a credit card number to register). Buyer can fund the account with a credit card (Visa & Mastercard), by making a direct deposit from a bank account, or by sending a check.

Limitations: Both parties must have a PayPal account

http://www.paypal.com/cgi-bin/w ebscr?cmd=home/auction/index

Reviewed in AuctionBytes-Update Issue #8

Free

Money in a PayPal account is non-interest bearing.

Quick payment ; Starting in June, accounts are insured for up to $100,000 for unauthorized transactions

PayPal Premier/ Business Account

Same features of PayPal Personal Account plus it: allows you to use your company name; gives you access to 24/7 customer support hotline; and offers optional daily bank-deposit feature for a .6% fee

1.9% of transaction amount

Money in a PayPal account is non-interest bearing, though PayPal plans to offer interest in the future.

Starting in June, accounts are insured for up to $100,000 for unauthorized transactions

ProPay Exchange Cash

Buyers send money from their ProPay account to the sellers' ProPay account

Free

Money in ProPay account is non-interest bearing

Quick payment

ProPay Web Pay

Seller enters sale information into form on Web site; the buyer receives an email to make payment through ProPay with credit card (Visa & Mastercard). ProPay then deposits money into seller's account

Limitations: Seller cannot use name of her business – individuals only at this time (6/00).

-You can process a total of $1,000 in payments each month. The maximum amount per transaction is $250.

-Sellers must be U.S. residents with social security number, checking account and credit card to open Commerce Account

http://www.propay.com/question s.html

3.5% plus 35 cents; 35 cents to retrieve your money (using Send Cash feature) (Note: Once you execute a Send Cash transaction, the information that you have entered must be 100% accurate, including your checking account number. If not, the receiving bank will initiate an ACH return that will cost you $10.)

Buyers can later dispute the charge using the credit card company dispute resolution feature; money in ProPay account is non-interest bearing and is not insured

Payment in 48 hours

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). Billpoint then deposits money into seller's account

Limitations: For Standard Service there is a $500 per-transaction limit; for Merchant Service there is a $2,000 per-transaction limit

http://pages.ebay.com/help/selle rguide/bp-fees.html

Standard Service Fee is 39 cents for transactions up to $10, 39 cents plus 3.9%* for transactions over $10.

Merchant Service Fee (for qualified users): 35 cents for transactions up to $10, 35 cents plus 3.5%* for transactions over $10.

*Add another 1% for payments from non-U.S. buyers

Buyers can later dispute the charge; limited to eBay auctions

7-day lag from time of credit card transaction to deposit in bank acc  ount

Billpoint puts the money directly into the seller's bank account