Payment Types Index

If you are an eBay seller, there are a number of ways to accept payment from eBay bidders and buyers in order to complete a transaction. The list below is not exhaustive, but does include all of the most commonly used forms of online payments processing. Each has its own benefits and drawbacks. PayPal is by far the most common, but (as can be seen here) there are alternatives.

Personal Check [draft by mail]

Pros:

• No memberships or special instructions required
• Almost anyone can pay this way
• No fees charged to the seller in most cases

Cons:

• Considerable time delays (mailing, check clearing)
• Risk of non-payment via bad check
• Requires extra trip (i.e. to bank) for seller
• Clearing/currency fees for international payments

To Get Started: Provide correct mailing address to eBay, state acceptance of this form of payment in auction listing.

This payment method is self-explanatory. The winning bidder simply mails you a check for the total sale amount plus shipping, handling, and insurance when appropriate. Nearly anyone is able to mail a check, but checks to mean long delays. Be wary, too, of accepting checks for large totals; if a buyer’s check turns out to be bad, you could be left holding the bag!

Cashier’s Check or Money Order [draft by mail]

Pros:

• No memberships or special instructions required
• No fees charged to the seller in most cases

Cons:

• Considerable time delays (mailing, check clearing)
• Risk of non-payment via bad check
• Requires extra trip (i.e. to bank) for buyer and seller both
• Clearing/currency fees for international payments

To Get Started: Provide correct mailing address to eBay, state acceptance of this form of payment in auction listing.

This payment method may seem slightly more safe than accepting personal checks, but be wary—there are many money order and cashier’s check scams out there as well and nearly any institution can issue a cashier’s check, so not all drafts of this type are created equal.

Merchant Account [credit card]

Pros:

• Simplest, fastest method for your buyers/bidders
• Much more safe and reliable than bank drafts/checks
• Accept payments the same way through eBay and your online store (if applicable)
• Adds an air of professionality and exclusivity

Cons:

• Per-transaction and percentage fees may apply
• Some initial fees/start-up costs
• Extra paperwork/overhead hassles

To Get Started: Contact your bank.

Credit card payments are generally the safest, most reliable form of online payment overall for all parties involved. Seller is protected against buyers with little or no intention to pay (such as those who might otherwise write bad checks), while buyers are protected against receiving damaged or faulty merchandise. Payment clears quickly and reliably. On the other hand, the startup costs (which can be hundreds or even thousands of dollars) can seem high for small businesses and some processing overhead is involved, not to mention logistical issues. (i.e. Do you have your buyers phone credit card numbers in to you? Set up a website?) Best for medium-to-large sized companies.

PayPal [credit card, e-check, or bank transfer]

Pros:

• Virtually standard for eBay transactions, most bidders already familiar with process
• Simple, fast method for your buyers/bidders
• Much more safe and reliable than bank drafts/checks
• Accept payments the same way through eBay and your online store (if applicable)
• Bookkeeping virtually automatic

Cons:

• Per-transaction and percentage fees apply
• Some buyers less inclined to trust PayPal than credit card merchant

To Get Started: Visit PayPal website.

PayPal is without a doubt the payment processor of choice on eBay—no surprise since it is owned by eBay themselves. Buyers can send payments via credit card, e-check, or instant bank transfer. Sellers can transfer money that they receive through PayPal directly into their bank account. Biggest caveat: some buyers that absolutely refuse to use PayPal, usually as a matter of concern for protecting their personal data.

BidPay [credit card]

Pros:

• Simple, fast method for your buyers/bidders
• Much more safe and reliable than bank drafts/checks
• Similar features to PayPal, for those who want a PayPal alternative

Cons:

• Per-transaction and percentage fees apply
• Many fewer members than PayPal
• For auctions only, not for e-storefront use

To Get Started: Visit BidPay website.

BidPay, not to be confused with the old BidPay.com, which was owned by Western Union and generated money orders for sellers through online credit card payments, is a service similar in operation to PayPal. It boasts fewer members and fewer features, but may be attractive to those who want a PayPal alternative with similar functionality.

Other and/or Outside U.S.

A number of other payment systems have been approved by eBay and are primarily used by buyers and sellers outside the U.S. These include Allpay.net, cash2india, CertaPay, Checkfree.com, hyperwallet.com, Moneybookers.com, Nochex.com, Ozpay.biz, Paymate.com.au, Propay.com, and XOOM.

Services not listed here are actually forbidden by eBay and stating that you accept them in an auction listing can lead to cancellation of your listing.

For more details on allowed and forbidden payments processors for eBay sellers, please visit the eBay Accepted Payments Policy page.