Selling on eBay is great, but one of the biggest issues comes from accepting payments. While some of us can get away with using PayPal for a few purchases a year, others cannot. If you sell as a professional on eBay, you should consider an eBay merchant account – that doesn’t involve PayPal at all.
While this sounds like a great idea – and it is – eBay has strict regulations on who, and how, an outside source can be used to process payments. According to eBay, “Merchants with their own merchant credit card processing account, and those who use a third-party credit card processor, may also offer their buyers the option of paying directly with a credit card online (including through third party checkout) or by phone”. eBay considers whether or not the payment model is legit and fully secured, as well as whether the payment systems could confuse people.
eBay also considers many factors concerning the items themselves. According to eBay, “Whether the payment model involves precious metals, or other non-cash (points, miles, minutes, coupons, discounts) as consideration”. And for those who wish to accept offline payments, there is this warning: Offline payment methods generally do not offer the same level of protection or convenience as online payments. Nonetheless, they may be appropriate for certain types of transactions and sellers may use listings to offer acceptance of most valid financial instruments including personal checks, cashier’s checks, money orders or COD.
Scary, right? Well, if you have a good merchant account provider you should not worry. While eBay has their preferred list of outside merchant account providers, if you have a secure high risk merchant account provider, such as EMB, you should be okay. This is a great way to keep your business in check – especially since PayPal isn’t favorable to those who have a lot of transactions in a short amount of time.
This is the bad thing with PayPal: They can close an account without notice, and you will be left without payment or a chance to refund your customers. This is the worst idea for a merchant, so if you are selling on eBay, check with your merchant account provider to see if they can help you out.