PayPal for New Ebayers
It didn't take long for me to discover eBay. Next I needed to know how to pay. Some sellers asked for payment in the form of a check or money order, others used a source called PayPal. It all seems a little hazy since I was new to this. If I bought something from a seller that only took checks or money orders, I didn't need a PayPal account, but that really limited me because it seemed that the items I wanted to buy, used PayPal.
I realized I needed to sign up with PayPal, but I wasn't very comfortable about giving out my credit card number or bank information. So I did some research to ease my concerns. There is no charge for becoming a Paypal member. It was great to learn the following information about using PayPal.
Protection - When you used with PayPal for an item covered by Paypal buyer protection, you receive coverage up to $2,000 at no extra fee. Paypal even has a "Money Back Guarantee"
Easy - You can use your credit card or bank account to pay and all you need is the seller's email address
Fast - It is immediate and convenient. You pay instantly and get your item faster because there is no wait for checks to clear
Secure - The financial information is not shared with the seller. Sellers don't see your credit card number, it is safely encrypted through Paypal's server which limits the risk of unauthorized use.
Free - it does't cost the buyer a cent
Flexible - supports payments in U.S. dollars, Canadian dollars, Euros, Pounds, sterling, Australian dollars and Yen with instant conversion
Global - accounts available to users in more than 56 countries worldwide
Traceable- this is the best, you can trace the status of your payment using "My Ebay" or your PayPal account. You have an automatic payment tracking system
Versatile - I could use any of my credit cards, Visa, Mastercard, Discover, American Express or I could use an e-check. I soon discovered that I felt better about paying for the item I won on ebay with a seller that took Paypal. I liked the fact that is was quick and easy.
eBay & PayPal Trivia
Years back, when Ebay was fairly new, they had their own in-house payment service but it wasn't seamless and since Paypal was the leader in moving money, ebay purchased Paypal. Now Paypal which is primarily a U.S. based service, also accepts payments to or from 56 other countries. PayPal doesn't charge the buyer any fees, instead it charges the seller a fee based on the amount of money transferred. The seller benefits because the payment is quick from your account to theirs.
PayPal's Payment with E-checks
An E-Check is the short term for an electronic check. They are one of the options provided to sellers who sign up with a premier or business account with paypal. It is a unique way to transfer money. If I wanted to send someone an e-check, paypal will debit my account and credit theirs. More businesses are taking PayPal as a source of payment. I could send money to relatives or friends as long as they have a Paypal account too. It is much faster than sending a paper check from one location to another.
Again, I wasn't very comfortable about giving up my bank account information that I used for personal and business, so I opened a new account with a bank that offered free checking. I called this my eBay bank and I am free to use PayPal's e-check or a debit card. Using your own checking bank account is probably what most people do, but I was a little over cautious. Many times the sellers would prefer a credit card used rather than an e-check because it takes so long to be processed through the bank and paypal. The seller doesn't get the payment until paypal notifies them and it takes from 8-10 days to clear.
I discovered that eBay sellers feel better about an e-check over "the check is in the mail" because if there isn't money in the buyers checking account, Paypal will deny it so sellers don't get a bounced check. I would appreciate this if I were a seller.
PayPal and "Buy it Now"
It was great to find something you needed and click the "Buy it Now". If the seller offers items with "Buy it Now", that means that you buy it immediately and the money is transferred from your credit card to the sellers' paypal account. You get the item quicker because the seller received the payment immediately. Some of the sellers that displayed "Buy it Now" offered free shipping too. Another thing about "Buy it Now", because you know the item it yours and you don't have to go through the auction bidding process. The buyers who wish to buy this way will need to have their shipping address confirmed by Paypal, usually it is the same address as the billing address of their credit card.