eBay Selling Question > Money Orders vs. PayPal

[mort]

I'm fairly new at selling on eBay and I've received a question from a member regarding payment for an item....they would like to pay with a Post Office Money Order instead of PayPal.

My question: what would be the disadvantage of accepting a payment as a money order instead of PayPal? Is there any liability losses on my part?

One I can think of is reimbursement if the buyer decides to return the card. However, if I decide to accept the money order as a payment method I will likely hold onto it until the return grace period (7 days) is up.

Thank you!

 

[greyminis]

There are no disadvantages to being paid by money order, as long as the money order is legitimate. No paypal fees are taken from the payment so you get the full amount.

 

[metsman1986]

It would save fees from PayPal......................Just make sure you can absolutely PROVE that you shipped with DC and whatever else is required...................Mike

 

[BoomerSooner]

Ebay doesn't allow you to accept money order payments for cards. It's a violation that could result in suspension. You can only accept electronic forms of payment, like Paypal, for almost all Ebay items. Certain things, like automobiles, they allow you to accept a money order.

http://pages.ebay.com/help/policies/accepted-payments-policy.html

 

[greyminis]

Reading the policy link doesn't indicate to me that money orders are prohibited, but that paypal or another electronic means needs to be an option if you are selling on ebay. It doesn't make sense that ebay could prohibit you from only receiving payment via paypal. There is supposed to be freedom of choice in the United States. Sure, ebay makes more money if buyers are paying through paypal, so obviously ebay would prefer buyers pay through paypal.

As a buyer, I'm happy to pay through paypal because then I receive the buyer protection and the paypal fee falls to the seller.

As a seller, I would prefer a money order so that ebay doesn't charge the additional fees that they charge if I receive payment through paypal.

 

[mort]

I called eBay's customer service number and asked someone whose native language was not English my question.

Turns out using a money order is acceptable...however I was told in not-so-clear English eBay will not 'protect' the seller if they decide to bypass PayPal in lieu of a 3rd party payment method -- including US Postal Money Orders. (I'm thinking there really isn't too much protection now for the sellers....)

Thank you for all the responses to this. It is giving this novice eBay seller a lot to think about!

 

[cjay101]

I used to despise receiving checks and money orders when I sold on ebay. I preferred the paperless route...then again, paypal fees were more reasonable back in 04-06 when I did the majority of my business there.

 

[BoomerSooner]

Reading the policy link doesn't indicate to me that money orders are prohibited, but that paypal or another electronic means needs to be an option if you are selling on ebay. It doesn't make sense that ebay could prohibit you from only receiving payment via paypal. There is supposed to be freedom of choice in the United States. Sure, ebay makes more money if buyers are paying through paypal, so obviously ebay would prefer buyers pay through paypal.

This doesn't indicate no MOs to you?:

"Payment methods not allowed on eBay:

For most categories, sellers can't ask buyers to:

Send cash through the mail

Send cash or money orders through instant, point-to-point cash transfer services (that are not banks) such as Western Union or MoneyGram

Mail checks or money orders (except for items in categories specifically permitted below)"

"Sellers aren't allowed to make statements like:

“Contact us for payment information.”

“Contact us for other payment methods.”

“Contact us for your preferred payment method.”

“Buyers may request to pay by check or money order.” "


I don't see what "choice" has to do with the business practices of a private company. Not every restaurant accepts American Express. Some don't take Discover. Many places won't take checks. It's the business' rules, nothing to do with America or choices, IMO.

 

[BoomerSooner]

http://www.inc.com/tech-blog/ebay-says-paypal-only-please.html

 

[mrmopar]

That is definitely a change since I last sold. I only accepted Money Orders or checks with a waiting period, which was fairly common in the early days of ebay for many sellers.

That pretty much locks you in as a seller for sure to accept ebay's own paypal.

Ebay doesn't allow you to accept money order payments for cards. It's a violation that could result in suspension. You can only accept electronic forms of payment, like Paypal, for almost all Ebay items. Certain things, like automobiles, they allow you to accept a money order.

http://pages.ebay.com/help/policies/accepted-payments-policy.html

 

[greyminis]

Ebay Policy

This doesn't indicate no MOs to you?:

"Payment methods not allowed on eBay:

For most categories, sellers can't ask buyers to:

Send cash through the mail

Send cash or money orders through instant, point-to-point cash transfer services (that are not banks) such as Western Union or MoneyGram

Mail checks or money orders (except for items in categories specifically permitted below)"

"Sellers aren't allowed to make statements like:

“Contact us for payment information.”

“Contact us for other payment methods.”

“Contact us for your preferred payment method.”

“Buyers may request to pay by check or money order.” "


I don't see what "choice" has to do with the business practices of a private company. Not every restaurant accepts American Express. Some don't take Discover. Many places won't take checks. It's the business' rules, nothing to do with America or choices, IMO.

The key phrase here is: "sellers can't ask buyers" which means buyers can use any accepted means, to include money order...they cannot be asked to use a specific means.

 

[mrmopar]

Good point, that may be a possible loop hole.

However, it also mentioned not allowing sellers to include certain phrases that would lead a buyer to believe they had options. Essentially, it appears a buyer must ask out of the blue if they could use a MO and then that may be OK. Most buyers at this point and conditioned to using PP and I would assume most prefer it actually. The MO would be a seller driven choice I would assume (to avoid fees and remove the ability for the buyer to get an easy refund if something goes wrong).

It is obvious ebay is steering people away from anything other than online payments, and most specifically sending them to paypal, an ebay company! Double dipping on every sale!

"Sellers aren't allowed to make statements like:

“Contact us for payment information.”

“Contact us for other payment methods.”

“Contact us for your preferred payment method.”

“Buyers may request to pay by check or money order.”

The key phrase here is: "sellers can't ask buyers" which means buyers can use any accepted means, to include money order...they cannot be asked to use a specific means.

 

[BoomerSooner]

The key phrase here is: "sellers can't ask buyers" which means buyers can use any accepted means, to include money order...they cannot be asked to use a specific means.

Sorry, I disagree, the KEY PHRASE is this:

"Payment methods not allowed on eBay"(followed by the list which includes MO)

You may see a loophole there, but to me, that statement is crystal clear.

Again, I cannot recall buying anything from Ebay in the last 4 years by any method other than Paypal. Perhaps we have a member here that CURRENTLY sells on Ebay and uses another means of payment collection and can give us further info.

 

[greyminis]

As I stated initially, as a buyer, I don't disagree with you regarding paying through paypal. That's how I pay for everything I buy on ebay. It's the only way to pay if you are the buyer. It's instant, easy and provides the ultimate protection if you don't receive your purchase. As a seller, if you want to pay me with a money order, I'm not going to say no...and I'm not going to get booted from ebay. Ebay has nothing to gain by booting sellers.

 

[BoomerSooner]

I think you can/will get booted. It might not be tomorrow, but they will eventually catch on and give you the ultimatum- use Paypal or go away. That's what they did to me.

http://pages.ebay.com/sell/August2008Update/OtherFAQ/#3

What's changed with payments on eBay?
As of October 22, 2008, checks and money orders are no longer allowed as payment methods on eBay. All items appearing on eBay.com must be paid for using either:

PayPal
Credit or debit card payment to a seller (through a seller's Internet merchant account)
ProPay
Moneybookers (starting early February, 2009)
Paymate (starting early February, 2009)
Payment upon pickup

In early 2009, all of the approved electronic payment methods will be integrated into eBay checkout. For example, if a seller offers credit or debit card as a payment option, buyers will be able to directly enter their credit card information securely in eBay checkout and their payment will be directly routed to the seller's Internet merchant credit account.