Safe payment options! Which one to choose? Make sure your ass is covered.

So you've taken the plunge to buy something on eBay. You notice that you have quite a few payment options available to you. PayPal, PayMate, direct deposit, wire transfer etc etc ... and the list goes on for a little. Which one are you supposed to choose? Which one is the safest?

Let's go through the most popular eBay payment methods one by one.

1. PayPal - This is my favourite payment method. It's fast and easy and it allows you to pay with your credit card without giving your credit card details to the seller. All you do is register with PayPal and your details will be stored with them.
   
   Each time you win an auction and check out, you may be able to choose the PayPal option. You'll be taken to PayPal where you log in and confirm the payment details before making your payment.
   
   Since PayPal is an eBay company, PayPal has a similar dispute resolution process as eBay. If you purchase an item on eBay using PayPal, you will be required to use PayPal's dispute resolution process instead of eBay's in order to get your money back.
   
   It's also possible for you to use your bank's chargeback facility to reclaim your money through PayPal.
   
   As with online banking, make sure you do not click on any links in emails that look like they're from PayPal. If you need to verify your PayPal account details, open up your web browser and enter the PayPal web address.
   


2. PayMate - I haven't used this payment method before, but it looks fairly similar to PayPal. I'm not sure of their security and dispute resolution methods. Please leave a comment if you've used this method before. Everyone will appreciate it.
   
   
   
3. Direct Deposit - This option allows you to deposit money into the seller's bank account. You'll get the bank account details on eBay, or your seller will send them to you. You then go to any branch of the seller's bank and make a deposit for the amount of your purchase. You can also deposit through Internet transfer (next in the list).
   
   This is a convenient way if you want to pay by cash. The only problem is that you will have to trust that your seller will refund your money. There is practically no way to get your money back if the seller doesn't want to hear from you.
   


4. Internet Transfer - If you have your seller's bank account details, you can transfer money into their bank account using your bank's Internet banking facilities.
   
   This option is great because you don't have to leave the home. It does, however, have the same issue of trust as the direct deposit option.
   


5. Wire Transfer - This is different to Internet transfer because you will be using a service such as Western Union. It's very unsafe and is used predominantly by sellers who want to steal your money.
   
   Be careful when you're dealing with sellers who use this payment option only. If any other options are available, such as PayPal, please use that instead. I will tell you a story in relation to wire transfers in my next post.
   


6. Money Order - This is very Aussie based. You just go to your local post office to purchase a money order under the name specified by the seller. Make sure to post your Money Order with the item number or your eBay ID on the back, with a print out of your invoice. It will take longer to process your payment if you don't provide this information.
   
   Please make sure you spell their name correctly because the seller will have to present identification in order to get cash from the post office for the Money Order.
   
   If you have any problems where you need to get your money back, you will have to trust that the seller will refund your money.
   
   If, however, your Money Order is lost in the mail you can apply to Australia Post in writing to issue a replacement. You will be required to show your receipt, serial number, money order tab, or the payee's name, amount, date, and post office it was purchased.
   
   See Australia Post's Terms and Conditions for details.
   


7. Bank Cheque - This is standard. Just go to the bank to purchase a bank cheque. This is fairly expensive since banks usually charge an additional $5 to write a bank cheque. This method also takes up to 3 days for the seller to process. So you'll be waiting a fair amount of time to receive your items.
   
   Make sure you provide a print out of your invoice with your cheque to the seller. If you have any problems, the only way you can do anything about it is to call your bank. Make sure you keep the cheque stub attached to the bank cheque.
   


8. Personal Cheque - Most sellers will not provide this payment method.
   


9. Cash - This method is only advised when you're picking up the item. Do not send cash by mail. When paying with cash, you will have to trust that your seller will refund your money if something goes wrong.
   
   


10. Escrow - I haven't used this method either, but is used for high-priced items because the fees to the seller are high. Fees to the seller are around the $30+ mark.
    
    What happens is you will have to sign up to the escrow service provider that the seller is using and you pay the escrow site after you've confirmed the details with the seller. The escrow service provider (such as Escrow Australia) holds your payment until you receive your items. You tell the escrow service that everything is okay, and the escrow service sends your payment to the seller.
    
    Even though I haven't used this, it is recommended when purchasing items over $400.

I have been happy using PayPal and Internet Transfer to pay for eBay auctions. They're very easy to use, fast, and convenient.

I also have another story to share with you about using the charge back facility to get a refund from PayPal for the seller who didn't send me my items.

That's a lot to digest in one go. I hope that helps you with your eBay shopping.

Don't hesistate to let me know of any other payment methods you've come across that you would like me to review. It would also be great if you could share your experiences.