Ebay has done a great job incorporating Paypal into the auctions and helping to provide the user with some "protection" from shady sellers.  For the most part transactions go smooth but for the few times there are problems it's nice to know you've done everything possible to protect yourself.

Here are some things to know in order to maximize the protection when buying on Ebay and using Paypal to make the payments.

DID YOU KNOW:  That regardless of how you are going to pay for the item you can simply use the checkout "Pay Now" button to find out the registered information of the seller.  All you need to do is simply click the Pay Now button and select any of the payment options aside from Paypal and the next screen will show the sellers information, the name, address and sometimes the phone number.  You can then print out the page with the information and go back and pay via Paypal.  Sometimes the Ebay system won't let you get to the detailed page unless there is a shipping total, in this case simply put in any dollar amount to bypass the limitation.  You are only using this process to get information so the total isn't an issue.  This way you get more information about the seller prior to paying via Paypal.  We all know that the only information the Paypal gives you is the email address and the name on the Paypal account and that's only after you've made payment.  Using this procedure regularly will give you a head start in the event of a problematic transaction.

CREDIT CARDS:  By far the best way to protect yourself when using Paypal is to pay using a CREDIT card (note do not use a Debit/ ATM card).  The differences in the type of card may not be obvious but without going into the nuances of each just accept the fact that credit cards are the way to go.  In the event something goes wrong with the purchase you made AND Paypal's protection really doesn't get you your money back you can still file a complaint with the credit card company and let them handle the problem.  Paypal will be more vigilant in their efforts when the credit card companies get involved.   The worst thing about Paypal is that the default payment is typically in the following order:  existing funds, checking account, credit card.  The reason they do this is so that they can collect your "CASH" payments first.  The way to get around this is to consistently withdraw any funds you have in your Paypal account to your bank account and then always change the funding source to credit card, when that is an option from the seller.  The issue with this "cash" payment is that if you have a problem and Paypal can't resolve this then you are out of luck because you have no more up buttons to push.  If you get into the habit of changing the funding source to credit card consistently, then if there is a problem and Paypal doesn't resolve it to your satisfaction, your UP button becomes the Credit Card companies.  The loyalties for the credit card company is you first and then Paypal.  I have serious concerns about whether Paypal can say the same.

MAILING A PAYMENT:  For numerous reasons, some sellers will only accept non-card payments, there is nothing wrong with this payment method as long as they are also willing to accept some sort of mailed payment.  This way you have a name to make the check out to and an address associated with the seller.  The main thing to know about mailing a check is that as long as you mail the check via USPS (United States Post Office) and there is fraud involved,  then you have a FEDERAL fraud case because the USPS is a governmental agency.  Other sellers accept card payments but only after they add on some fee (typically 4%) to cover the fees charged by the card companies, again nothing wrong with that as long as you are aware of that option.

BANK ACCOUNTS:  For the most part the bank account information is very safe on Paypal.  They basically force you to register a bank account and credit card in order to be "confirmed" or "verified", I'm not a fan of their arm twisting but here is a way to protect yourself.  Play it safe and open a savings account at your bank strictly for Paypal, once you do this simply keep the bare minimun in that account and add or deduct money to cover purchases.  This way you minimize your losses, if any, and maximize your Paypal flexibility.

ONLINE BANKING:  If you are going to mail a check then I would urge people to use an online bank and send the check out via their system.  Most provide free tracking and mail the bank check, this is equivalent to a Money Order / Cashiers Check (saving you the postage cost, money order costs and most importantly time).  Just be sure to let the seller know which bank you have used to send the check because the return address on the envelope will have the banks informaiton and you don't want the check to be thrown out accidentally.  Another thing to remember is to  make sure you put the item number on the bank check when you fill it out online.

PAYPAL BUYER RESOLUTION PROCESS:  Paypal recently incorporated a new way to file a claim.  With this new process you first file the claim and then Paypal now directs you to a "communication" page where you can contact the buyer, then they've limited the amount of days to come to a resolution to 20 days.  This is fine for instances where the buyer has actually responded but just the fact that you've gone this far should tell you this isn't worth the bother.  The worst part is if you don't escalate this phase to an actual claim prior to the 20 days then you've lost your privilage to file an official claim.  My recommendation is to simply file the claim and immediately escalate this to a claim.  If the seller responds and you do get your item then you have the option to cancel the claim, but do this only after you're completely satisfied otherwise once a claim is closed so are your options to file a claim on that transaciton.  I was recently told the Paypal has a policy of only allowing 3 refunded claims per year, after that you are out of luck.  This simply means that if you buy many items using Paypal you need to be selective about which claims to file.  In the end you always have the option of contacting your credit card company regardless of Paypal's process and they will still refund you even though Paypal may not be able to get your money back.  In the end use your credit card as often as possible and no that doesn't mean your Paypal credit card.  This is especially true if you are unsure about a seller, and even in this case you can always email one of their buyers to find out if it's safe to pay in another method aside from credit card.

To all readers of my guides, if you do find any of this information useful a "YES" vote at the bottom is always appreciated.  If you don't, you can send me an email and tell me what would help to make this a better guide.  I'm sure some sellers will find this information offensive and leave me a negative review but it is intended to only edcuate the buyer and not offend the seller.

Feel free to email me if you have any questions about my items or another item you see on eBay.

CLICK HERE so see and read my other guides.

CLICK HERE to visit seller's eBay Store!