Using Paypal for buying secondhand

Posted by: Salmon Dave on 27 April 2011

Call me old-fashioned (....), but something doesn't quite smell right about this. I don't know the mechanics, but my understanding is that Paypal is a subsidiary of ebay (and subject to their onerous charges), and that it may not be entirely secure. Direct bank transfers using IBAN numbers seem far preferable, yet I've had several offers to buy units with Paypal -from abroad, but not the usual suspect locations - and these people get quite sniffy when you demur.

 

Am I being over-cautious - or have I missed a well-known scam?

Posted on: 27 April 2011 by David Scott

I can't guarantee that these people are legit as I obviously don't know them, but paying by PayPal outside Ebay is perfectly viable. You can use it to send money to anyone else who has an account. I've used it a lot and never had a problem, but it's up to you to look into charges and conditions and make your own decision. It's not a scam in and of itself.

Posted on: 27 April 2011 by Salmon Dave

Thanks for the reassurance. If it's secure, I don't see how it can be a problem - I simply wouldn't send the goods until the cash is in the bank account.

I wondered if they hit you with charges for currency conversion.

Posted on: 27 April 2011 by RaceTripper

If you sell something on PayPal, only ship to the buyer's Paypal verified address, using a service that provides tracking, and require a signature for delivery. Otherwise, the buyer can claim they never received the goods and request a chargeback from Paypal, who will then oblige the buyer. You will be left with no recourse.

 

I'm in the US. If I sell something via Paypal payment, I only ship within the continental US and only to the buyer's Paypal verified address. I also only use a shipping method that provides tracking and verification of signed delivery. No exceptions. 

 

There is still risk for a scam. The buyer can claim they got damaged product, didn't get what they paid for, and so on. If the buyer seems dodgy, then pass on doing business. So what if they get mad.

 

Best to use lots of paranoia.

Posted on: 27 April 2011 by TomK

Nothing's "entirely secure". Check this week's news about Sony's PS3 network for that.

 

I don't sell online so can't comment on that side of it but I've paid for loads of stuff without a problem. There was one hiccup that as a seller may be relevant to you. A couple of years ago I made a Paypal payment from work on an afternoon when we were having regular network crashes. As a result the payment was taken from my bank account and that had never been verified. It seemed to go through ok, it was marked as paid, and the seller put my item in the post. However when it reached the bank a couple of days later they had no knowledge of it and it was bounced. Obviously I made a proper payment immediately but it was all quite embarrassing. I'd suggest you take advice from Paypal and other sellers as to when it's safe to send.