How to Select the Best Method of Paying for Online Auction and Classified Ad Purchases

Aug. 22, 2011 - PRLog -- Consumers who buy items at online auction sites and through Internet classified ads should give careful consideration to how they pay the seller.  Some methods are extremely risky, while others provide more security guarantees.  Connecticut Better Business Bureau, however, cautions consumers to avoid a false sense of security when using some popular payment methods by reading all terms and conditions.

According to Connecticut Better Business Bureau President, Paulette Scarpetti, “There are many new players in the online payment arena, and some offer better protection than others.”

Online payment options include credit cards, escrow companies, online payment companies, checks, cashier’s checks, money orders and wired payments.  Unfortunately, not all of these options are available from some sellers, however, certain payment methods put buyers at great risk of being cheated out of their money.

Connecticut BBB offers the following assessments of the various online payment methods:

Wired payments and money orders – Buyers should avoid any seller who insists on being paid by wire transfer.  If you are selling an item online, you might want to avoid accepting payment by money order.  Some scammers use forged documents.  If you accept a money order or cashier’s check, make sure it clears before sending an item to the buyer.

Escrow services – Some escrow services are scam companies, so be sure to research them at http://www.ct.bbb.org.  Legitimate escrow services are very secure for the buyer, however sellers may have to wait as long as 8 weeks to receive payment and may not want to use them.

Online payment companies – PayPal is among the best-known online payment service, however, protection is limited if the seller is not a PayPal verified seller.  There are many other newcomers in the online payment arena.  Research and compare terms and conditions.

Credit cards – Credit cards offer the most protection.  Not all sellers are set up to accept credit card payment, however, third party credit card processors are making this option possible for sellers and buyers and becoming increasingly popular.

When making an online auction purchase, research the seller’s reputation rating.  If possible, pay by credit card, escrow or online payment services, and compare their fees and protection levels when making your choice.  

To check the reliability of a company and find trustworthy businesses, visit http://www.bbb.org.

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Founded in 1928, Connecticut BBB is an unbiased non-profit organization that sets and upholds high standards for fair and honest business behavior. For more advice on finding companies and businesses, start your search with trust at www.bbb.org.