How eBay Buyers & Sellers Can Use Paypal For Transactions

Paypal accounts are the perfect way to ensure a smooth financial transaction between eBay buyer and seller. Chosen by most buyers and sellers as the preferred way to check-out, Paypal offers a buyer payment options using major credit cards or his/her bank account. Likewise, sellers can take advantage of payment notifications and have the guarantee of funds available. This reliable service avoids bounced checks, lost money orders or cash sent in the mail. Sellers are also able to take advantage of direct deposit to their bank accounts, transferring their money to a Paypal debit card or saving it to open a Paypal Money Market Account.

There are several options available when opening a Paypal account. eBay buyers will most likely choose a Paypal Personal Account. This account is free and does not require any transaction fees. Paypal requires all accounts linked to bank accounts to become verified. Whether payment methods chosen come from savings or checking accounts, the Paypal account must first be registered with bank account routing number, account number and type (either checking or savings). Afterwards, two small deposits will be placed in the account. After waiting a few days, the amounts deposited can be entered on the Paypal website and, if entered correctly, the bank account will now work fine.

One downside to paying with a bank-only method is having a shipping delay. eBay sellers must wait for the money to clear out of the buyer’s bank account and be processed through Paypal. One way to speed up the process is to add a credit card. By adding a credit card to the account, payments are processed to the seller faster and merchandise is shipped quicker.

Sellers need Paypal Business or Premier Accounts. These are designed to receive payments from buyers and are created with the seller in mind. Both Paypal Business and Premier Accounts allow sellers to receive their payments in designated bank accounts (if one has been verified) or in the form of a Paypal Debit Card. However, if using an eBay store with more than one owner, a Paypal Premier Account is necessary. This works best for stores with co-owners or those where a group of people each manages niche stores under one large, umbrella-type of operation.

While eBay buyers do not have to pay a fee to purchase and complete a transaction, sellers have varying fees. In addition to the eBay listing fee, sellers must also pay Paypal fees. These fees vary based on the overall seller’s monthly sales volume, but a good rule of thumb is .30 cents plus 1.9 to 2.9% of the selling price per transaction. For example, if monthly sales are in the $1000 range, and a buyer purchases an item for $10, the fee charged to the seller from Paypal would be approximately .59 cents. The higher the monthly sales volume, the lower the Paypal transaction fees are to the seller.

Paypal also has other added features including fraud protection, free eBay merchant tools, and the ability to process international payments (for an additional charge). Accepted in more places that eBay, having a Paypal account is a great way for both buyers and sellers to conduct virtual business in a safe, controlled environment.