Gone are the days when only cash (or cattle in some cases)
was the only accepted mode of payment for trades. As the concept
of trading evolves, so does the means of paying for items.
Today's electronic world pushes the envelop further.
With the advent of online trading systems such as eBay, many
new forms of payment have flourished.
First of all, on eBay, the mode of payment depends on the
agreement of the buyer and the seller. Most often, the seller
will specify his or her desired payment method. In these cases,
the seller often has primacy in the decisions regarding payment
modes. However, the buyer may still communicate with the seller
regarding a viable alternative if it suits both parties.
The following is a list of common eBay payment modes.
Cash On Delivery
Cash is, after all, still cash. This payment method can be
done through a third party courier system or by the buyer
and seller meeting each other at an agreed place. The advantage
of such is that the exchange of item for payment is done in
the presence of the buyer and the seller (or the seller's
representative). However, some people will qualm over the
risk present when two strangers meet.
Personal Check
One popular method of payment is personal check. Writing checks
is easy and safe. However, many sellers do not like accepting
check because they are easy to cancel.
PayPal
PayPal is the payment of choice on eBay. In fact, eBay owns
PayPal. Using PayPal is easy, convenient, and relatively safe.
PayPal acts as like an internet 'wire transfer.'
After signing up for PayPal, one may send cash over to anyone
with an email address using the PayPal system. PayPal also
has security features that safeguards against fraud in case
there is dispute between the seller and the buyer. This system
is best for transactions up to $1000.
Escrow.com
Escrow.com is the payment of choice for purchases over $500.
Escrow.com holds the buyer's money from the seller until the
seller delivers the item. Only then will the funds be released
to the seller. This system makes for a very safe, although
highly procedural transaction.
Wire Transfer
This is the payment of choice for countries that do not carry
the PayPal service. Wire transfers are risky because the buyer
usually has to wire over the funds before the seller sends
the items. The chance for non-delivery of items is high.
Other Payment Systems
The number of third party payment services is steadily on
the rise. Their systems for payment vary. However, to be successful
they must be convenient to use and safe as well.
