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Internet Auctions

Payment Options

Buyers may have several payment options, including credit card, debit card, personal check, cashier's check, money order, cash on delivery and escrow services. However, all sellers do not accept all forms of payment.

Credit cards offer buyers the most consumer protections, including the right to seek a credit from the credit card issuer if the product is not delivered or if the product received isn't the product ordered. Typically, sellers using business-to-person auction sites accept payment by credit card. But many sellers in person-to-person auctions don't. Usually they require payment by cashier's check or money order before they send the item to the winning bidder.

Some sellers agree to use an escrow service. For a fee generally 5 percent of the cost of the item, paid by the buyer an escrow service accepts payment from the buyer via check, money order or credit card. The service releases the money to the seller only after the buyer receives and approves the merchandise. This helps protect buyers from ending up empty-handed after paying their money. The flip side? Using an escrow service can delay the deal. As with any business transaction, investigate the escrow service's reputation before signing on to the service.

Occasionally, sellers agree to send items COD, with the buyer paying when the item is received.

 

Table of Contents
________________________

How Auctions Work

Kinds of Auctions

Payment Options

If you're a buyer...

Consumer Concerns

Know the Seller

Know the Product

Know the Auction Site

Bidding

Wrapping up the Deal

Where to Turn for Help

If you're a seller...

Tips for Sellers

Your Legal Obligations

Advertising Options

The Art of the Deal

Who Can Help?

 

Source: Federal Trade Commission

 

 

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