Just wondering about this, Hope someone can chime in. Why had some sellers rather be paid with a money order rather than paypal?
What the advantages or disadvantages of each one?
If you pay by money order, you have no recourse if the product is not satisfactory. It's a lot like sending cash, but with a lower risk of disappearing during transit. Once it's received and cashed at the other end, it's 'hasta la vista, baby', as far as having any chance of getting it back (without the recipient's cooperation, of course).
If you use PayPal payment for an eBay auction or other goods/services, you're fairly well protected. If you use PayPal Gift payment, you're less-well protected, but may have recourse through your credit card, if that's where the funds came from.
There's many threads about PayPal on the Forum & Misc forum,
Yes, PayPal does offer the buyer a chance to open a dispute and get their money back (the decision is made by PayPal, based on the evidence provided by each side)
So PayPal is good for buyers, because it offers them some protection
However PayPal charge for this service (2.4% last time I looked), and that charge is paid by the seller. For example, if I pay someone $1000 for a camera, PayPal takes $24 and the seller only receives $976
This is why buyers prefer PayPal, but some sellers prefer money order
Of course if you're selling on ebay (and ebay own PayPal), then ebay take their cut too, which is over 7%. After ebay fees and paypal, the seller would only receive $900 from a $1000 sale.
Another aspect of PayPal that is nice for the buyer is that it is fast to make payment, and very simple for the buyer to use. It allows me to avoid the need to make a trip in person to the post office to buy the money order. PayPal also can transmit your address to the seller electronically, which lowers the chance of errors, and lowers the work required by the buyer.
wendy Bennett wrote:
Very good explanations, Even I can understand that.
Thanks so much...
Wendy, All above is true BUT most FM'ers here that have immaculate feedback, if paid with a money order and the item is found to be defective in some way UPON ARRIAVAL OR WITHIN 48hrs, will gladly refund mo when item is returned in sent condition.
So please consider that and ask questions to the seller about this always prior to final deal.
Dan
Wendy, FWIW, I have had numerous transactions here with members with flawless feedback on high-dollar items (i.e., lenses, bodies, etc) using both MO and personal checks. While it might well happen that down the line I get burned, it hasn't happened yet. I pay careful attention to whether or not the buyer/seller has a history with putting up posts on whatever board it is that reflects their specialty(ties). On sales I offer a 48 hour inspection and hold their personal check until I get the okay. With USPS MO, I cash it, deposit it, and that ensures that if the person I've sold to doesn't want the item, I have the funds available to create a USPS MO in their name and then send it back.
After all was said and done, between fees and the atrocious exchange rate paypal gives, I received $1446. I would rather have that $100 in my pocket than give it to paypal
I have some feedback here which helps, but most times I would rather cross shipping money order for gear with an equally trusted member.
+ 1 for trust in Sellers/Buyers with FM posting history and outstanding transaction reviews. In this day and age, I have to admit it gives me warm fuzzies. It's a throw back to handshake deals between honorable people that could be relied upon to keep their word.
