Expert: Marvinator - 4/27/2004

Question
I would like to try selling some items like Movie DVDs and Books on Ebay. Upon registeration, they want me to enter a credit card number. I am uncomfortable with doing this. Is there a way to get around this requirement. I don't mind entering a checking account # because I would have an account that would be used for Ebay buying and selling only. Also why don't they deduct fees from the product sell and send only the net profit to the checking account?

Thanks for helping me out. I have a few movie DVDs and books that I would like to get rid of!

Cherry

Answer
I'm really glad you asked this question because it allows me to talk about the ins and outs of paying for and selling items on ebay.  

First, don't worry about putting a credit card on file with ebay. So long as you keep your account secured, you will have no problem.  Security: Always change your password regularly.  Never share your password (Ebay or Paypal) with anyone, not even a family member. Never, NEVER N-E-V-E-R fall prey to any email that says your account has been stolen/breached/attempted hacking etc., or any email which asks you to click a link and log-in.  These emails only want you to go to THEIR mirror image site and enter your name and address and password. This is called Social Engineering or Trolling.  All you end up doing is giving out your secure account information to a criminal.  If you ever suspect there is problems with your account, do not click ANY Link in ANY email! Always open your browser and type in the address you want.  This is and will remain the best way to get to Paypal and check your account.  Always remember to log-out when you are done, too!

A credit card on ebay is a quick way of setting you up with an account.  The credit card company already has you verified, and using their information is a good way for Ebay to verify you.  When entering the information, check carefully to make sure you enter the information correctly, not just the account number.  Use a statement to get the address correct letter for letter.  (In the verification system, "123 Street" is different from "123 St" and also different from "123 St." - Type exactly what you see on your statement.)

There is no fee for having an account on Ebay, so until you actually sell something there is no charge.  When you DO sell, you are only charged for the items you list.  (You have already read the fees section and understand them? Good.)  

Lastly, you asked "why don't they deduct fees from the product sell and send only the net profit to the checking account?"  This question proves that you have made a fundamental assumption about ebay that so many first timers make and I'm happy to help you through it.  

The best analogy is to consider Ebay like the local newspaper.  You pay to run an ad to sell your item, but the newspaper doesn't step in and collect the money.  You,the seller, pays Ebay to list your item.  When you make a sale, Ebay only charges your account with the fees involved. Ebay does nothing in the collection and reimbursement of sales.

YOU must contact the buyer (either using the invoicing system, or emailing them yourself) and set up the transaction.  YOU will collect the money in a manner YOU choose.  Each seller may request the type of payment they decide upon: Checks, Charges, Paypal, Money Order, and even Cash - or ANY combination of them, too.  The seller (YOU) then arranges to receive the payment.  

Checks, Money Orders and Cash can be mailed - and the buyer needs to know where to mail it.  (A post office Box is a good idea here.)  Although Paypal is owned by Ebay, you must set up your account there separately from Ebay using your email address.  The buyer then uses their Paypal account to send you the payment using your email address as the recipient.  Paypal will require your bank account information and will go through a verification process of their own.  Follow the steps carefully.   

I hope this helps you in your new business.