Paypal is the preferred payment choice for many buyers because Paypal allows buyers to pay instantly for eBay purchases. In this article, we will review using Paypal on eBay from the buyers point of view.
Since eBay purchased Paypal, it has become even easier for buyers and sellers to complete auction sales. Buyers like Paypal because they may quickly and easily pay online. In fact, some bidders will only bid on items they may pay for with Paypal.
One thing that confuses buyers is some sellers accept Paypal payments through credit cards, while others only accept transfers. You see, with Paypal a buyer can fund the transaction in three ways. This may confuse buyers, and cause problems.
Heres the three ways to fund a Paypal transaction:
1. Transfer from a bank account tied to the users Paypal account.
2. Transfer from a Paypal balance.
3. Payment from a Credit Card.
The first two options cost Paypal nothing in processing fees. Credit cards cost about 2 percent to process, and Paypal passes this cost on to merchants. Some eBay sellers do not want to pay this fee for service, so they only accept payments by transfer. This confuses buyers who win auctions and assume a credit card transaction is fine.
Paypal goal users to transfer funds, and not use their credit cards. Not only is this cheaper for Paypal, but there is no risk of a chargeback.
A chargeback is when a buyer reverses the charge on a credit card by contacting his bank. Most, maybe all, banks will reverse a credit card charge with little or no investigation if the card holder contests the charge. The funds
is taken right out of the merchants bank account -Paypal in this case.
Paypal makes it difficult to utilize a credit card to send funds
through Paypal. This is done building
the credit card payment option difficult to find, and warning users about the "risk" because you cannot buy Paypals insurance.
With a credit card purchase, you do not positive need
Paypals insurance. Your bank will reverse the charge free if the seller scams you.
One other way Paypal makes it hard for users to instantly send funds
with a credit card is by limiting the total amount you may charge.
The first time I tried to make use of
Paypal to pay for an eBay auction, I was unable to make use of
my credit card because the amount was above the limit. That was a $700 product. I think the single merchandise
limit is $500, but could not find confirmation of this. The lifetime limit, or total amount you can send all eBay sellers with a credit card is $2,000.
If you wish to pay for an product with a credit card through Paypal you should confirm the seller takes card transactions. This can be done reviewing the auction and looking for the credit card logos adjacent to the Paypal logo in the payment methods screen.
Whenever you pay for an eBay auction through Paypal, you should check the sellers Paypal status. Do not send large amounts to unverified users, and watch that the users address matches the auction details.
Paypal is an elegant way to pay for your eBay purchases.
