Question about transactions with out of town buyers

[Arm123]

Hey guys.

With the holiday season has come an influx of new business for me.  I am used to selling items to people that are local.  However, Lately i have been receiving queries about my items from people that live ether overseas or in the US (im in Canada).

What I am wondering is...  What’s the best way to go about payment for my items ?  Usually the transaction is around $1000 and the buyer wants to pay via cc.  Naturally I am worried about crating and shipping my item off after payment has been received, only to find out later that the cc has been 'charged back' (for various reasons).

What are some good precautions and methods for payment ?  I haven’t been screwed over yet, and I don’t want to be.  I also don’t want to refuse customers.

Any thoughts are welcome.

[Fozzy The Bear]

Those are the risks that any business takes.

99.999% of buyers are honest decent people who just want to buy the goods. Avoid transactions with countries that are known to have high fraud levels, like Africa, Eastern Europe etc etc... 

Use Paypal to take card payments. Then make sure that you ship with a service that provides a tracking number to prove where the goods are. If the buyer tries to make a chargeback claim through Paypal, you can then PROVE that you shipped the goods and Paypal will not charge back to you.

If they try to make a chargeback directly on their card, then the credit card company will be disputing it with Paypal and not with you directly. Again as long as you can prove dispatch and transit, then they can't charge it back to you.

Hope that helps!

Best Regards,
Julian (Fozzy The Bear)

[Arm123]

yup..  indeed it does.

Thanks very much.  I was considering doing some sort of third party billing system.  PAYPAL is just as good as any, so i will use them.

thanks again.

[leapinlew]

I've had good luck with Paypal. From what I understand, if there is a dispute - Paypal is automatically the buyers friend and the sellers enemy. I've been told to get my money out of Paypal asap so they don't lock all your funds if there is a dispute.

[stealth1290]

I work with an anti-scam team so if you're not sure about a buyer you can have me run there email through my database. Avoid payment from Western Union or Moneygram or even personal checks from countries like Nigeria. ALWAYS wait 10 days before sending an item if you do receive check or Money Order to make sure it clears. I'd say even with paypal wait a few days to make sure the payment doesn't get retracted.

[Arm123]

hmm...   interesting.

Iv also done some wire transfers in the past.  Is there anything that should be watched out for ?

The only thing i have heard about wire scams is people looking to lauder dirty money.  Basically paying for you item in excess of a few thousand dollars and claiming it was a mistake.  Then you being directed to wire the surplus to another account.

I 'think', once the funds leave the foreign account, its as good as cash in your hands (or in your account).  But it still makes me nervous.  I may setup a separate account specifically for wire transfers, with a balance of zero.  So I don’t have to worry about locking up my main account at the branch incase of fraud investigations.

Also, another option that iv been presented with is to have the money wired to me via western union and get the cash 'in hand' for a small fee ?

What does all this sound like to you guys ?

[stealth1290]

Fake western union and check are what you need to watch out for. You get a check or MO in the mail cash it the money shows up in your account but a few days later it doesn't clear. Watch out for anybody who is sending a check or MO that is in a hurry... this is a dead give away that there checks won't clear. Just play it as safe as possible.

[Spaz Monkey]

Also be careful about US Postal Money orders.  I've heard of them getting stolen, then cashed, then USPS wanting their $$$ back.

[leapinlew]

These are true. Avoid the USPS, Western Union, and anything where they want to pay a little more. If you want to see this scam in action - post something on craigslist that has a decent value. Like an ipod. List it for $500 and watch as you get interested people who want to send you more for it - if you'll ship it out of country.

Is this the "interest" your getting with your ebay auction? If so, consider it a scam.

[Arm123]

No..  I have sold some items with out issue.

However, i got those 'Interested" parties from kijiji and craigslist.

They asked for my account #, name on account, routing #, and bank address.

I asked for some more info and the stopped responding.  Happened numerous times.

They are always in a hurry...  so i can smell it a mile away.

[xmenxmen]

That's why I general state in my cl list that local only and cash only!!!!  got tired of dealing with those people.  If I need to sell anything beyond local, I go ebay and only accept paypal with confirm address.  And once I get the money, I pull it out right away. 

[SithMaster]

These are true. Avoid the USPS, Western Union, and anything where they want to pay a little more. If you want to see this scam in action - post something on craigslist that has a decent value. Like an ipod. List it for $500 and watch as you get interested people who want to send you more for it - if you'll ship it out of country.

Is this the "interest" your getting with your ebay auction? If so, consider it a scam.

Then you just dont send them the difference.  Its like scamming the scamers.

[stealth1290]

That's why I general state in my cl list that local only and cash only!!!!  got tired of dealing with those people.  If I need to sell anything beyond local, I go ebay and only accept paypal with confirm address.  And once I get the money, I pull it out right away. 

Be careful even with this, if you cash the check and take the money out this does not mean the check has cleared. And if the check bounces your account is held responsible. I can also raise suspicion from investigators if you're so quick to cash it. Just keep that in mind.