Monday, November 20, 2006
Michigan vs Ohio State & eBay vs Charity
So, it's OK to scalp tickets on eBay for personal profit but once you announce that the money is going to a "good cause" they'll shut you down? According to reports, Kristie Sigler and her husband, Ken were trying to sell two tickets to this weekend's much anticipated Michigan-Ohio State game in order to raise money to adopt a boy from Guatemala (Madonna must have been busy). The couple says eBay shut down their sale without so much as a call or an e-mail, because it violated the company's prohibition on charitable auctions. Although eBay has these rules "because charitable fundraising is a highly regulated area subject to numerous state and federal laws," were the Siglers actually doing charity fundraising? If they had said the proceeds would be spent buying beer for tailgating instead of defraying the $12,500 cost of processing their adoption paperwork, would that have been allowed?
PlayStation 3 Sellers Reaping Rewards On eBay
One console that was offered in an auction that was nearing its close on Friday afternoon had bids that reached $2,850. Sony suggests a retail price of $500 for the basic system. By K.C. Jones InformationWeek Nov 17, 2006 04:20 PM
Owners of the highly sought after Play Station 3 were reaping hefty profits from sales of the consoles as soon as eBay lifted restrictions on their sales.
One console that was offered in an auction that was nearing its close on Friday afternoon had bids that reached $2,850. Sony suggests a retail price of $500 for the basic system. The basic package comes with a 20-Gbyte drive. The company suggests an additional $100 for systems with extras like wireless capabilities, Bluetooth high-definition DVD players, and 60-Gbyte drives.
Sony announced that it would be shipping only 400,000 PlayStation 3units as the console made its U.S. debut Friday. That resulted in hot sales, lines that lasted for days, and a few reports of violence.
eBay imposed restrictions before the video game machine went on sale in an attempt to prevent fraud and other complaints like those that followed the launch of Microsoft's xBox360 last year. The restrictions applied specifically to Sony's new console and Nintendo Wii pre-sales. Nintendo plans to release the Wii on Sunday.
"These highly-anticipated video game consoles will be in extremely short supply during their initial launch," eBay wrote on its Web site. "During the launch of the similarly-released Microsoft xBox360, we saw a high number of well-intentioned sellers unable to meet their pre-sale obligations to buyers due to restricted supply, as well as an increase in fraudulent listings for these items."
Just before its official release before Thanksgiving last year, the xBox360 was drawing bids around $1,000 on eBay. Microsoft released a limited supply as part of a marketing strategy, which also boasted the release as the biggest game launch ever.
The PlayStation 3 and Wii restrictions on eBay permit the pre-sale listing of only one console for each seller before the products' launch. They also require sellers to accept payment through PayPal, have at least 50 comments, with 98% or higher positive ratings, in the auction Web site's feedback listings. That makes the units eligible for coverage under PayPal's Buyer Protection plan. Pre-sales of the game consoles are not allowed to be marked with "Buy It Now" offers and must be displayed with pictures and pre-order receipts.
eBay's pre-sale listings of Wii products were around 2,000 at the end of the week. One seller drew six bids, with the highest being $256 and about one day remaining before the listing would close. Another drew an $800 bid. The suggested retail price is $249.99.
Friday afternoon, the xBox360 console received a top bid of $369.99 with 18 minutes remaining. That console's suggested retail price is about $300.
Owners of the highly sought after Play Station 3 were reaping hefty profits from sales of the consoles as soon as eBay lifted restrictions on their sales.
One console that was offered in an auction that was nearing its close on Friday afternoon had bids that reached $2,850. Sony suggests a retail price of $500 for the basic system. The basic package comes with a 20-Gbyte drive. The company suggests an additional $100 for systems with extras like wireless capabilities, Bluetooth high-definition DVD players, and 60-Gbyte drives.
Sony announced that it would be shipping only 400,000 PlayStation 3units as the console made its U.S. debut Friday. That resulted in hot sales, lines that lasted for days, and a few reports of violence.
eBay imposed restrictions before the video game machine went on sale in an attempt to prevent fraud and other complaints like those that followed the launch of Microsoft's xBox360 last year. The restrictions applied specifically to Sony's new console and Nintendo Wii pre-sales. Nintendo plans to release the Wii on Sunday.
"These highly-anticipated video game consoles will be in extremely short supply during their initial launch," eBay wrote on its Web site. "During the launch of the similarly-released Microsoft xBox360, we saw a high number of well-intentioned sellers unable to meet their pre-sale obligations to buyers due to restricted supply, as well as an increase in fraudulent listings for these items."
Just before its official release before Thanksgiving last year, the xBox360 was drawing bids around $1,000 on eBay. Microsoft released a limited supply as part of a marketing strategy, which also boasted the release as the biggest game launch ever.
The PlayStation 3 and Wii restrictions on eBay permit the pre-sale listing of only one console for each seller before the products' launch. They also require sellers to accept payment through PayPal, have at least 50 comments, with 98% or higher positive ratings, in the auction Web site's feedback listings. That makes the units eligible for coverage under PayPal's Buyer Protection plan. Pre-sales of the game consoles are not allowed to be marked with "Buy It Now" offers and must be displayed with pictures and pre-order receipts.
eBay's pre-sale listings of Wii products were around 2,000 at the end of the week. One seller drew six bids, with the highest being $256 and about one day remaining before the listing would close. Another drew an $800 bid. The suggested retail price is $249.99.
Friday afternoon, the xBox360 console received a top bid of $369.99 with 18 minutes remaining. That console's suggested retail price is about $300.
Thousands of PS3 units hit eBay on 1st day of sale at 3 to 4 times retail price
Nov. 18, 2006 12:00 AM
If you didn't camp out for the Sony PlayStation 3, you weren't likely to land one Friday. Well, unless you could put down plenty of cash to snag one from thousands that immediately went on sale online for three to four times the system's retail price. The basic 20-gigabyte game console retails for $499; the more popular 60-gigabyte version sells for $599 at stores.
However, one unit was going for $10,100 on eBay. Many were listed at $1,500 to $2,500.Such stores as Toys "R" Us, Best Buy and Fry's Electronics sold out within minutes. Several retailers pre-sold systems, and some didn't get as many as expected, angering some customers.
Retailers contacted couldn't say when they expect to get more units. Sony promised to ship 400,000 PS3 units for the U.S. launch Friday and 1 million units by the end of the year. Sony had expected 2 million units for sale this year.The scarcity of the game system led some diehard buyers to stand in line two and three days in advance.
If you didn't camp out for the Sony PlayStation 3, you weren't likely to land one Friday. Well, unless you could put down plenty of cash to snag one from thousands that immediately went on sale online for three to four times the system's retail price. The basic 20-gigabyte game console retails for $499; the more popular 60-gigabyte version sells for $599 at stores.
However, one unit was going for $10,100 on eBay. Many were listed at $1,500 to $2,500.Such stores as Toys "R" Us, Best Buy and Fry's Electronics sold out within minutes. Several retailers pre-sold systems, and some didn't get as many as expected, angering some customers.
Retailers contacted couldn't say when they expect to get more units. Sony promised to ship 400,000 PS3 units for the U.S. launch Friday and 1 million units by the end of the year. Sony had expected 2 million units for sale this year.The scarcity of the game system led some diehard buyers to stand in line two and three days in advance.
EBay Restricts Sale of PlayStation 3
The Associated Press
By RACHEL KONRAD
November 15, 2006
With the Xbox, we saw a high number of well-intentioned sellers unable to meet obligations due to restricted supply.
People pining for the sleek PlayStation 3 gaming console might find shortages on eBay as well.
The unfettered online marketplace for such items as Elvis memorabilia and Ferraris is imposing restrictions on the PS3, which is expected to become one of the hottest holiday gifts when it hits stores Friday.
Only established eBay Inc. vendors _ those who have racked up comments from at least 50 previous customers and have positive ratings of at least 98 out of 100 points _ can list PS3s before Friday. Each vendor can only list only one PS3 per eBay account.
The listing must include a photo of the pre-order receipt, and the seller must guarantee shipment within 30 days from the date of purchase. Before Friday, PS3s can be listed on eBay only in auction formats _ not as 'buy it now' items.
Potential buyers, trying to avoid long lines, rain checks and empty-handed sales clerks on Friday, have already bid up PS3s to $2,300. The suggested retail price is $500 for a basic PS3 with a 20-gigabyte drive and $600 for a version with 60 gigabytes, built-in wireless and a Blu-ray DVD player for high-definition video.
Sony Corp., which has already delayed the PS3 launch twice, expects to have 400,000 PS3s available for its U.S. launch. EBay listed 3,144 PS3s or related items by Wednesday morning.
The restrictions, part of eBay's standing policy for all 'pre-sale' items, also apply to Nintendo Co.'s competing Wii console, which goes on sale Sunday. EBay had 2,354 listings for Wiis and related items.
Microsoft Corp. launched its Xbox 360 console last year.
'We've seen a history with highly anticipated game consoles in extremely short supply during their initial launch,' eBay spokeswoman Catherine England said. 'With the Xbox, we saw a high number of well-intentioned sellers unable to meet obligations due to restricted supply.'
Copyright 2006 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
By RACHEL KONRAD
November 15, 2006
With the Xbox, we saw a high number of well-intentioned sellers unable to meet obligations due to restricted supply.
People pining for the sleek PlayStation 3 gaming console might find shortages on eBay as well.
The unfettered online marketplace for such items as Elvis memorabilia and Ferraris is imposing restrictions on the PS3, which is expected to become one of the hottest holiday gifts when it hits stores Friday.
Only established eBay Inc. vendors _ those who have racked up comments from at least 50 previous customers and have positive ratings of at least 98 out of 100 points _ can list PS3s before Friday. Each vendor can only list only one PS3 per eBay account.
The listing must include a photo of the pre-order receipt, and the seller must guarantee shipment within 30 days from the date of purchase. Before Friday, PS3s can be listed on eBay only in auction formats _ not as 'buy it now' items.
Potential buyers, trying to avoid long lines, rain checks and empty-handed sales clerks on Friday, have already bid up PS3s to $2,300. The suggested retail price is $500 for a basic PS3 with a 20-gigabyte drive and $600 for a version with 60 gigabytes, built-in wireless and a Blu-ray DVD player for high-definition video.
Sony Corp., which has already delayed the PS3 launch twice, expects to have 400,000 PS3s available for its U.S. launch. EBay listed 3,144 PS3s or related items by Wednesday morning.
The restrictions, part of eBay's standing policy for all 'pre-sale' items, also apply to Nintendo Co.'s competing Wii console, which goes on sale Sunday. EBay had 2,354 listings for Wiis and related items.
Microsoft Corp. launched its Xbox 360 console last year.
'We've seen a history with highly anticipated game consoles in extremely short supply during their initial launch,' eBay spokeswoman Catherine England said. 'With the Xbox, we saw a high number of well-intentioned sellers unable to meet obligations due to restricted supply.'
Copyright 2006 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
The eBay Seller's News, November 2006, Volume 6, No. 11
This Newsletter is a most read for all ebay sellers, Skip is a great writer and knows ebay just as good as anybody. http://www.skipmcgrath.com/newsletters/current.shtml
eBay Strategy: Don't Get Stuck with Bargain-Priced Goods
So there you are, browsing your local Wal-Mart. You turn down an aisle and there before you is an unbelievable bargain on summer clothing or a popular DVD. Or maybe you're in Radio Shack, where you find a half-dozen $50 remote-control cars on sale for $10 each.
"eBay!" you think. You snatch up the bargain goods and head for the checkout.
Wow! You're buying merchandise for less than a quarter of its list price, and you can post it on eBay as new for half retail and double your money. You can't lose, right?
Maybe.
You post the items on eBay in 7-day auctions, but they draw no bids. You re-list them, at a lower price - and there's still no action. This makes no sense; these items have always been popular. You decide to see if perhaps, by incredible chance, a couple of other sellers have posted similar items at lower prices.
Mysteriously, 22 sellers are offering the exact same goods, at prices well below retail. Could others have gotten to the bargains at your Radio Shack or Wal-Mart before you, and left just a few behind for you to find? You check and that the other sellers are from different parts of the country. What could this mean?
What, indeed? It means that these massive chain stores are dumping the same merchandise at most, if not all of their locations. It also means that you haven't stumbled on an opportunity - not when 20 other sellers are offering the same goods at a big discount, some for less than your price.
I first observed this phenomenon at Half-Price Books (http://www.halfpricebooks.com), a national chain with 80 locations in 14 states. I am a book collector, and once a month or so I go on an expedition to the three Half-Price stores in my area to see what I can find.
On one such trip several years ago I noticed that the same new, expensive hardcover books were on sale at a 70 percent or greater discount at each location. My mind immediately made the eBay connection. But I knew that Half-Price Books was a big chain, and that publishers sold off copies of slow sellers to outfits like Half-Price, so I didn't scoop up a dozen copies of these $40 books on sale for $12 each. I went home and did a search for the title on eBay. And you guessed it - in each instance I found a number of sellers offering the same book. And each seller lived in an area where a Half-Price Bookstore was located.
Obviously, you shouldn't count on a bargain being restricted to where you find it. All retailers clear out poor-selling items periodically. Some buy large stocks of merchandise direct from manufacturers who sell slow-moving products at absurdly low prices to get rid of them.
(Note: Publishers of books, CDs, DVDs, and software are particularly likely to do this, since they sell items to wholesalers and retailers on a returnable basis. When the merchandise isn't moving, they dump it to save warehousing costs. Thus, Half-Price Books might buy 4,000 copies of a $40 hardcover book for $3 per copy - the publisher's cost. The 4,000 books are then distributed among Half-Price's 80 stores, where they are sold for ten bucks each, earning Half-Price a $28,000 profit.)
Because each store in a chain stocks the same merchandise, the bargains are distributed across a large part of the country, where eager eBay sellers snap them up - and often end up reselling them for just a dollar or two profit after listing and relisting fees. You can avoid this by curbing the impulse to buy until you check eBay to see the bargain is local to your area, or nationwide.
However, a patient seller can still profit from retail dumping. If you're willing to sit on items for a while, you can buy the bargain now and wait a year or so before selling it. By then, the rest of the sellers who grabbed this item will have sold theirs or given up, and you'll be the only one offering it.
Not incidentally, there's something for buyers here, too. When you see a number of eBay sellers offering the same book, toy, or whatever there's a good chance they got the items from the same source. And the source just may be Wal-Mart or Half-Price Books or some other national chain where you can get the item at the same bargain price-half or less of what the sellers are asking.
About the author:
Michael A. Banks is the author of The eBay Survival Guide: How to Make Money and Avoid Losing Your Shirt (No Starch Press, 2005. ISBN: 1-59327-063-1). He has written 39 books and more than 3,000 magazine articles and short stories. A full-time freelance writer and editor since 1983, Banks has written for most major computer magazines, and has served as a Contributing Editor for such publications as Windows Magazine, Computer Shopper, Connect Magazine, and others. He began writing about computing for Popular Computing in 1981. In addition to writing for the computer press, Banks has contributed to a diverse range of magazines, including Writer's Digest, Science Digest, Analog Science Fiction, Cavalier, Grit, Visual Merchandising, Starlog, Modern People, Good Housekeeping, and many other special- and general-interest publications. His work has been reprinted in Japan and South America, and he has written features and columns for magazines in Japan and England. His latest book is How to Become a Full-Time Freelance Writer, published by The Writer Books. http://michaelabanks.com
"eBay!" you think. You snatch up the bargain goods and head for the checkout.
Wow! You're buying merchandise for less than a quarter of its list price, and you can post it on eBay as new for half retail and double your money. You can't lose, right?
Maybe.
You post the items on eBay in 7-day auctions, but they draw no bids. You re-list them, at a lower price - and there's still no action. This makes no sense; these items have always been popular. You decide to see if perhaps, by incredible chance, a couple of other sellers have posted similar items at lower prices.
Mysteriously, 22 sellers are offering the exact same goods, at prices well below retail. Could others have gotten to the bargains at your Radio Shack or Wal-Mart before you, and left just a few behind for you to find? You check and that the other sellers are from different parts of the country. What could this mean?
What, indeed? It means that these massive chain stores are dumping the same merchandise at most, if not all of their locations. It also means that you haven't stumbled on an opportunity - not when 20 other sellers are offering the same goods at a big discount, some for less than your price.
I first observed this phenomenon at Half-Price Books (http://www.halfpricebooks.com), a national chain with 80 locations in 14 states. I am a book collector, and once a month or so I go on an expedition to the three Half-Price stores in my area to see what I can find.
On one such trip several years ago I noticed that the same new, expensive hardcover books were on sale at a 70 percent or greater discount at each location. My mind immediately made the eBay connection. But I knew that Half-Price Books was a big chain, and that publishers sold off copies of slow sellers to outfits like Half-Price, so I didn't scoop up a dozen copies of these $40 books on sale for $12 each. I went home and did a search for the title on eBay. And you guessed it - in each instance I found a number of sellers offering the same book. And each seller lived in an area where a Half-Price Bookstore was located.
Obviously, you shouldn't count on a bargain being restricted to where you find it. All retailers clear out poor-selling items periodically. Some buy large stocks of merchandise direct from manufacturers who sell slow-moving products at absurdly low prices to get rid of them.
(Note: Publishers of books, CDs, DVDs, and software are particularly likely to do this, since they sell items to wholesalers and retailers on a returnable basis. When the merchandise isn't moving, they dump it to save warehousing costs. Thus, Half-Price Books might buy 4,000 copies of a $40 hardcover book for $3 per copy - the publisher's cost. The 4,000 books are then distributed among Half-Price's 80 stores, where they are sold for ten bucks each, earning Half-Price a $28,000 profit.)
Because each store in a chain stocks the same merchandise, the bargains are distributed across a large part of the country, where eager eBay sellers snap them up - and often end up reselling them for just a dollar or two profit after listing and relisting fees. You can avoid this by curbing the impulse to buy until you check eBay to see the bargain is local to your area, or nationwide.
However, a patient seller can still profit from retail dumping. If you're willing to sit on items for a while, you can buy the bargain now and wait a year or so before selling it. By then, the rest of the sellers who grabbed this item will have sold theirs or given up, and you'll be the only one offering it.
Not incidentally, there's something for buyers here, too. When you see a number of eBay sellers offering the same book, toy, or whatever there's a good chance they got the items from the same source. And the source just may be Wal-Mart or Half-Price Books or some other national chain where you can get the item at the same bargain price-half or less of what the sellers are asking.
About the author:
Michael A. Banks is the author of The eBay Survival Guide: How to Make Money and Avoid Losing Your Shirt (No Starch Press, 2005. ISBN: 1-59327-063-1). He has written 39 books and more than 3,000 magazine articles and short stories. A full-time freelance writer and editor since 1983, Banks has written for most major computer magazines, and has served as a Contributing Editor for such publications as Windows Magazine, Computer Shopper, Connect Magazine, and others. He began writing about computing for Popular Computing in 1981. In addition to writing for the computer press, Banks has contributed to a diverse range of magazines, including Writer's Digest, Science Digest, Analog Science Fiction, Cavalier, Grit, Visual Merchandising, Starlog, Modern People, Good Housekeeping, and many other special- and general-interest publications. His work has been reprinted in Japan and South America, and he has written features and columns for magazines in Japan and England. His latest book is How to Become a Full-Time Freelance Writer, published by The Writer Books. http://michaelabanks.com
A Look at Bank Transfers for eBay Payments
When I first signed up for a seller's account on eBay, I rememberbeing given the option of submitting a credit card number or mychecking account information. I'm used to paying for thingsonline with a credit card, but the thought of giving eBay accessto my checking account gave me pause.
Of course, I write checksfor everything from gas to groceries, and I often tuck a checkinto a birthday card for a relative. Yet I'm still suspicious ofdisclosing to just anyone my personal bank account number and thebank's routing number at the bottom of a check. Like mypasswords, my Social Security Number, my age, and my unlistedphone number, I'm afraid that personally identifying informationcan fall too easily into the hands of those who might exploit itat my expense.
So it seems strange that eBay, in its list of accepted paymentmethods(<http://pages.ebay.com/help/policies/accepted-payments-policy.html >) includes bank-to-bank transfers. In this kind of payment (alsoknown as bank wire transfers or bank cash transfers), the fundsare debited directly from a buyer's checking account andtransferred to the seller's checking account: Do not pass Go, donot give PayPal a chance to collect its fee. PayPal might beeBay's preferred payment method, but as sellers know, it's hardlyfree. Is it worth considering direct checking account transfersas a payment method, and if so, how can you do it safely?It doesn't seem like checking account transfers should be lesssafe than any other payment method.
After all, when I pay forthings online, I usually use my debit card, which was issued tome by my bank - it debits my checking account. Some of the othermethods included in eBay's "approved" list are not always safeand reliable, like C.O.D. (Cash on Delivery) or cash. eBayspecifies that these are okay for in-person transactions, butoccasionally you get a buyer who asks to use one of thesemethods. Experienced eBay buyers and sellers agree that WesternUnion wire transfers are risky (in fact, eBay bans sellers fromstating that they accept wire transfer services like WesternUnion).
Nobody I know uses C.O.D. (Cash on Delivery), although Ionce received an envelope from one of my customers that wasstuffed full of bills and coins.So what's the problem with bank-to-bank transfers? They seem tobe more popular in Europe than they are in the U.S. AndrewTitcombe, who sells records, CDs, DVDs, books, and other musicmemorabilia on eBay UK under the User IDs crucialmusic andcrucialvinylalbums, says, "I accept bank transfers from peoplewith 20-plus positive feedbacks - but only if I am specificallyasked."He doesn't advertise bank wire transfers in his terms of sale, inother words, which gives him the option of saying no.
One sellerI respect, Kimberly King (User ID: HigherGroundz) wouldn'thesitate to give the thumbs-down: "I would be wary of havinganyone have my bank account info - seems a bit risky. Whathappens if there is a dispute over something - would they freezeyour whole account? Frightening!"Here's another thing that's scary: my own bank charges $12 for meto receive an incoming wire transfer, unless an account holderhas $75,000 or more on deposit.Aaron Rosen, a personal banker in my home town of Chicago, sayshe understands why the U.S. might be lagging behind Europe whenit comes to bank transfer payments in particular and auctionpayments in general: "The success of online payment processingsites like PayPal is directly correlated to the failure oftraditional banking institutions to accommodate rapid paymentsand transfers between individual accounts.
As a matter of course,financial institutions in the US have always been more stodgy andtraditional, more regulated and more cumbersome when it comes toease of use and convenience than their European and East Asiancounterparts."Many U.S. financial institutions are now offering onlineprocessing of outgoing wire transfers, but the degree to whichfraud has been perpetrated against the general public by a smallband of online criminals is staggering. For this reason alone,Rosen does not recommend taking payments via wire transfer. "Theproblem with bank transfers is one of security - both thesecurity of a person who relays their personal financialinformation to a remitter of a payment, and our national securitywith regard to the monitoring of bank transfers," he says.Maybe the solution to this problem is just as easy as setting updifferent email accounts for different purposes.
Andrew Titcombekeeps only a small amount of money in a special checking accountdedicated to receiving eBay payments. "I am not willing to quotemy bank details on an eBay listing, and I never offer the serviceas such. However, my policy is to always try to accommodate abuyer. So in response to a request, I'm prepared to give out thebank account number from my No 2 account (not the main account).Most of these requests come from Germany, with the odd one fromFrance. I am still uneasy with this method and prefer thesecurity of PayPal, even though it is more expensive," he says.---Greg Holden, who lives in Chicago, is the author of several booksabout eBay, including "How to Do Everything with Your eBayBusiness," second edition, and "Secrets of the eBayMillionaires," both published by Osborne-McGraw Hill.
Find outmore on Greg's Web site (<http://www.gregholden.com >), whichincludes a blog related to his book "Internet Babylon: Secrets,Scandals and Shocks on the Information Superhighway," publishedby Apress.
This great artical is from http://www.auctionbytes.com
Of course, I write checksfor everything from gas to groceries, and I often tuck a checkinto a birthday card for a relative. Yet I'm still suspicious ofdisclosing to just anyone my personal bank account number and thebank's routing number at the bottom of a check. Like mypasswords, my Social Security Number, my age, and my unlistedphone number, I'm afraid that personally identifying informationcan fall too easily into the hands of those who might exploit itat my expense.
So it seems strange that eBay, in its list of accepted paymentmethods(<http://pages.ebay.com/help/policies/accepted-payments-policy.html >) includes bank-to-bank transfers. In this kind of payment (alsoknown as bank wire transfers or bank cash transfers), the fundsare debited directly from a buyer's checking account andtransferred to the seller's checking account: Do not pass Go, donot give PayPal a chance to collect its fee. PayPal might beeBay's preferred payment method, but as sellers know, it's hardlyfree. Is it worth considering direct checking account transfersas a payment method, and if so, how can you do it safely?It doesn't seem like checking account transfers should be lesssafe than any other payment method.
After all, when I pay forthings online, I usually use my debit card, which was issued tome by my bank - it debits my checking account. Some of the othermethods included in eBay's "approved" list are not always safeand reliable, like C.O.D. (Cash on Delivery) or cash. eBayspecifies that these are okay for in-person transactions, butoccasionally you get a buyer who asks to use one of thesemethods. Experienced eBay buyers and sellers agree that WesternUnion wire transfers are risky (in fact, eBay bans sellers fromstating that they accept wire transfer services like WesternUnion).
Nobody I know uses C.O.D. (Cash on Delivery), although Ionce received an envelope from one of my customers that wasstuffed full of bills and coins.So what's the problem with bank-to-bank transfers? They seem tobe more popular in Europe than they are in the U.S. AndrewTitcombe, who sells records, CDs, DVDs, books, and other musicmemorabilia on eBay UK under the User IDs crucialmusic andcrucialvinylalbums, says, "I accept bank transfers from peoplewith 20-plus positive feedbacks - but only if I am specificallyasked."He doesn't advertise bank wire transfers in his terms of sale, inother words, which gives him the option of saying no.
One sellerI respect, Kimberly King (User ID: HigherGroundz) wouldn'thesitate to give the thumbs-down: "I would be wary of havinganyone have my bank account info - seems a bit risky. Whathappens if there is a dispute over something - would they freezeyour whole account? Frightening!"Here's another thing that's scary: my own bank charges $12 for meto receive an incoming wire transfer, unless an account holderhas $75,000 or more on deposit.Aaron Rosen, a personal banker in my home town of Chicago, sayshe understands why the U.S. might be lagging behind Europe whenit comes to bank transfer payments in particular and auctionpayments in general: "The success of online payment processingsites like PayPal is directly correlated to the failure oftraditional banking institutions to accommodate rapid paymentsand transfers between individual accounts.
As a matter of course,financial institutions in the US have always been more stodgy andtraditional, more regulated and more cumbersome when it comes toease of use and convenience than their European and East Asiancounterparts."Many U.S. financial institutions are now offering onlineprocessing of outgoing wire transfers, but the degree to whichfraud has been perpetrated against the general public by a smallband of online criminals is staggering. For this reason alone,Rosen does not recommend taking payments via wire transfer. "Theproblem with bank transfers is one of security - both thesecurity of a person who relays their personal financialinformation to a remitter of a payment, and our national securitywith regard to the monitoring of bank transfers," he says.Maybe the solution to this problem is just as easy as setting updifferent email accounts for different purposes.
Andrew Titcombekeeps only a small amount of money in a special checking accountdedicated to receiving eBay payments. "I am not willing to quotemy bank details on an eBay listing, and I never offer the serviceas such. However, my policy is to always try to accommodate abuyer. So in response to a request, I'm prepared to give out thebank account number from my No 2 account (not the main account).Most of these requests come from Germany, with the odd one fromFrance. I am still uneasy with this method and prefer thesecurity of PayPal, even though it is more expensive," he says.---Greg Holden, who lives in Chicago, is the author of several booksabout eBay, including "How to Do Everything with Your eBayBusiness," second edition, and "Secrets of the eBayMillionaires," both published by Osborne-McGraw Hill.
Find outmore on Greg's Web site (<http://www.gregholden.com >), whichincludes a blog related to his book "Internet Babylon: Secrets,Scandals and Shocks on the Information Superhighway," publishedby Apress.
This great artical is from http://www.auctionbytes.com
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