Methods for Buyers

Because classifieds are inherently local, the most common form of payment has historically been cash: you find the item (which is most likely in your general area), contact the seller, meet in a public place, and complete the transaction. While this method works in most circumstances, there are a number of situations in which other methods of payment will likely be required.

Below you will find various methods of payment outlined with when you should use them, as well as their advantages, disadvantages, and tips on how to protect yourself from fraud.

Payment Method
Information
Pros
Cons
Cash
 When you should use it:

  • Items for sale under $1000
  • Pets that you see in person
  • Tickets
  • Services
  • If you are meeting the seller in person

How to protect yourself against fraud:

  • Always make sure to meet the seller and see the item
  • Never send cash in the mail

Fraud warning = LOW

  • Simplest form of payment for classifieds
  • You are able to meet the buyer and inspect the item
  • There is usually a lack of printed receipt
Paypal
 When you should use it:

  • eBay purchases
  • If you know the seller or know they are trustworthy

How to protect yourself against fraud:

  • Best if used when purchasing on eBay
  • If purchasing on eBay, check the seller's feedback rating

Fraud warning = LOW

  • Payment is immediate
  • No credit card required
  • The payment is traceable
  • Protection plan up to $200 if purchasing on eBay
  • Very little protection if not purchasing on eBay
Credit Card
 When you should use it:

  • Car dealers
  • Professional ticket sellers (e.g. StubHub)
  • Real Estate (for loans)
  • Pets from professional sellers

How to protect yourself against fraud:

  • Call your credit card company and ask about their protection plans
  • Research the company from which you are purchasing (you can start with the Better Business Bureau)

Fraud warning = LOW/MODERATE

  • Fast and easy
  • Most credit cards have fraud protection programs
  • Purchases can be traced
  • Not all credit card companies offer protection plans
  • A dishonest seller could steal your credit card number
Personal and cashier's checks
 When you should use it:

  • Landlords (security deposits)
  • Items for sale over $1,000
  • Pets if they are shipped to you

How to protect yourself against fraud:

  • Always make sure to meet the seller or landlord and to see the item
  • If you are having the item shipped to you, make sure to research the company from which you are purchasing

Fraud warning = LOW/MODERATE

  • Proof of payment
  • Traceable to a mailing address
  • You will likely have to wait until the check has cleared to get item
Escrow
 When you should use it:

  • When you are having an item shipped to you and are not entirely certain about the seller's integrity
  • If you do not have a checkbook

How to protect yourself against fraud:

  • Do a background check on the escrow service you are using. A good place to start is eBay's escrow page, as is a simple Google search

Fraud warning = MODERATE

  • You get to inspect the item before payment goes through
  • There is a large number of fraudulent escrow services that will steal personal information
Money orders
 When you should use it:

  • If you need a proof of purchase
  • If you do not feel comfortable carrying cash

How to protect yourself against fraud:

  • Make sure that you see the item before using the money order

Fraud warning = MODERATE

  • There is a proof of purchase
  • Payment is traceable
  • You must wait for your payment to clear before receiving the item
Bank to Bank Wire Transfer
 When you should use it:

  • If you do not have a credit card

How to protect yourself against fraud:

  • Verify the seller's name and address before completing the transaction
  • Make sure to see the item before initiating the transfer

Fraud warning = MODERATE

  • Payment is immediate
  • Payment is deposited directly into seller's bank account
  • Your bank will make sure the seller's account is real
  • Not traceable to a verified address or name
  • No payment protection
Wire Transfer Services (Western Union, MoneyGram, etc.)
 When you should use it:

  • If you know the seller personally and they do not live near you

How to protect yourself against fraud:

  • Only use when you know the seller

Fraud warning = HIGH

  • Payment is instant and easy
  • No payment protection
  • Not traceable