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Using Paypal for eBay Purchases
EDITOR'S COMMENTS:
Terry Gibbs' article on using PayPal for eBay Purchases is a must read for eBay
shoppers and sellers. For eBay sellers PayPal is the perfect credit acceptance tool, because it is easy and
seemless to your product listings.
Paypal is the preferred payment choice for many buyers because Paypal allows buyers to pay instantly for eBay
purchases. In this article, we will review using Paypal on eBay from the buyers point of view.
Since eBay purchased Paypal, it has become even easier for buyers and sellers to complete auction sales. Buyers
like Paypal because they can quickly and easily pay online. In fact, some bidders will only bid on items they can
pay for with Paypal.
One thing that confuses buyers is some sellers accept Paypal payments through credit cards, while others only
accept transfers. You see, with Paypal a buyer can fund the transaction in three ways. This can confuse buyers, and
cause problems.
Heres the three ways to fund a Paypal transaction:
1. Transfer from a bank account tied to the users Paypal account.
2. Transfer from a Paypal balance.
3. Payment from a Credit Card.
The first two options cost Paypal nothing in processing fees. Credit cards cost about 2 percent to process, and
Paypal passes this cost on to merchants. Some eBay sellers do not want to pay this fee for service, so they only
accept payments by transfer. This confuses buyers who win auctions and assume a credit card transaction is
fine.
Paypal wants users to transfer funds, and not use their credit cards. Not only is this cheaper for Paypal, but
there is no risk of a chargeback.
A chargeback is when a buyer reverses the charge on a credit card by contacting his bank. Most, maybe all, banks
will reverse a credit card charge with little or no investigation if the card holder contests the charge. The money
is taken right out of the merchants bank account -Paypal in this case.
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