Someone wrote a guide stating all sellers should accept all forms of payment.  But there is no single correct answer for all sellers.  I'm going to toss out some pros and cons to help sellers decide what is best for them.  And buyers will likely learn a bit about why sellers do what they do.

WHY PAYPAL?  Most sellers choose to offer Paypal because most ebayers have a Paypal account AND that is how most ebayers prefer to pay.  Paypal users tend to have confirmed addresses thus reducing the risk of fraudulent transactions shipped to never-neverland.  Paypal records can be downloaded into Quickbooks and other programs, making bookkeeping faster (that's my main reason) and may alleviate the need for hiring a bookkeeper.  This makes life easier when you file your taxes if you are running a business.  And if you turn your financial records over to your accountant, you will look like less of a buffoon. Paypal records are easily searchable by customer name and frequently you will need to look something up, whereas it is hard to look people up by name in My Ebay because buyers are listed by user ID.  Paypal provides a service akin to USPS Click-n-Ship, then registers the payments and shipments in the seller's My Ebay, which reduces seller error and provides proof of shipment.  Also the buyer can go into his/her Paypal account and click on Check Shipment to see when their package was shipped.  DOWNSIDES: Paypal commission fees are steep, especially for receiving international payments. (Seller pays these fees. For the buyer, using Paypal is free.) And some ebayers have had unpleasant experiences with Paypal locking shut their bank account while a dispute is in progress.  See Paypal or other websites for details on that.

WHY NOT PERSONAL CHECKS?  New sellers usually want to offer most forms of payment to increase the likelihood of sales.  Heck, in the beginning, I accepted everything but live chickens. Later, if the business grows, a seller may stick with just Paypal to keep bookkeeping simple or for some of the other reasons named above.  The problem with personal checks is not what you might think. I have never received a personal check that bounced.  The real problem is that the seller must hold the check for two weeks to make SURE it doesn't bounce and the buyers do not like that.  Buyers will generally say, "Sure, I understand, I'm in no hurry."  But two weeks feels like eternity when you want to get those goodies in the mail and soon they start inquiring about the status of their order.  I sympathize and tried to be patient about this for the first few years.  But I stopped accepting checks when I received an unjustified neutral feedback from a buyer who complained that I took too long to ship.  In truth, I received her check over Thanksgiving, yet deposited it as soon as I was able. Then I waitied exactly two weeks for her check to clear and promptly shipped her book media mail--which is slowwww--during Christmas season--which is even slowwwwer.)  Other downsides: buyers often procrastinate mailing in the check.  Even if all goes well, sales must be recorded manually, which is not a big deal for the small seller, but those add up when you are running a business.  THE PLUS SIDE: You avoid paying those high Paypal fees and you can still use the shipping portion of the Paypal program if you have an account with them. I cannot over-emphasize what a treasure the shipping program is.

MONEY ORDERS and cashier's checks are the best alternatives to personal checks. If the buyer sends it right away, the seller can ship as soon as they receive payment.  But buyers get busy, do not have time for errands to the bank, etc., and sometimes with the best of intentions they say, "Gosh, I hate to wait too long. I'll just send a personal check."  Sellers now must go through the two-week wait or return the check. Either way, the sales must be recorded manually.  But seller still avoids the high Paypal fees.

CREDIT CARDS (direct from buyer to seller) require the seller to have a merchant credit card account, the cost of which is prohibitive for all but the largest sellers.  I know.  I had one. The fees were brutal.  But Paypal accepts credit cards through Paypal payments.  DOWNSIDE:  There is a higher risk of chargebacks, wherein the buyer tells both Paypal and their credit card company, "Hey, I didn't charge this!"  Paypal explains chargebacks more fully on their site.

CASH? It is against ebay policy to ask for payments in cash sent by mail. You can hand over cash if you are selling a sofa and the customer shows up at your house to pick it up. I do recommend this latter method, to save Paypal fees; but it gives the buyer a chance to turn their nose up at the sofa--e.g.: "You call THAT blue?"--and walk away with the cash still in their pocket.  Personally, I prefer having a disgruntled buyer walk out on me than have them hand me the cash, take the sofa, decide they were robbed, then trash my feedback.  Feel free to disagree. Some people want a sale at all costs.  I prefer to have a good sale with a happy customer... oh, sometime this month versus an immediate sale with a crank who makes my life agony afterwards.

WHICH METHODS ARE RIGHT FOR YOU?  It depends on what you are selling, how expensive it is, how desperately you want each and every sale, how much you loathe or enjoy bookkeeping, whether you are running a full-time business versus cleaning out Uncle Harold's attic, etc.  I think in some cases, it also depends on whether it is vintage/antique or new.  People expect a purveyor of vintage goods to be flexible on accepting checks as well as to negotiate price.  A high-volume business with a logo selling new office supplies might be expected to honor credit cards.  Someone unloading closets who will not be on ebay for long may be willing to accept whatever, especially if they do not have to report earnings to the IRS.

While we are on the topic, here is another question that may have puzzled you.

WHY ONE PAYMENT?  Sellers usually want one payment for the order, regardless of how many things you ordered, because it helps them keep track of your order all on one page and reduces the likelihood of error. The larger the seller, the more true this is.  When the buyer makes two payments, the seller sees two orders, may not notice the similarity in names, and may ship them separately, causing the buyer to lose any chance for combined shipping discounts.  If the buyer makes two payments and then contacts the seller and asks for combined shipping, the seller will probably work something out for you.  I always do, but I can't speak for everyone.  Making two payments through Paypal can nearly double the seller's fee and some sellers may not be willing to tinker with the paperwork or forfeit that fee.

REGARDING ORDER CONFUSION:  Buyers, please do not think sellers are dense. Try to realize that you may be bidding on merchandise from several different sellers.  But the seller may have twenty or more customers clamoring over merchandise on any given day. Sellers WANT to give you personal attention and to help you, but you are not the only fish in the sea.  I feel a little sad when a buyer pays, I ship the package, then later in the day I see that same person is bidding on something else. I would have been glad to combine shipments to save them money if I had only known but it is sometimes hard to keep track of a number of buyers during the flurry of selling.  Or sometimes I get an email from someone who says, "Hi, I'm the one who ordered the blue yarn."  And I may have many people who ordered the same yarn the same week.  One week I had four customers named Smith.  Another week I had two people with similar first AND last names, with slight spelling differences.

So ends Part I in a series. And before you get your boxers in a bunch over something you disagree with, remember, I DID say that there is no one answer that is right for everyone. But having more information is always helpful in making decisions.

 --dj runnels (c) 2007 Life's an Expedition Trading Post