How do you guys handle payment for online transactions?

[pickoid]

Hi all,

I'm in the process of buying a guitar from a fellow forum member here. Neither one of us has much experience in an online transaction between individuals, but it seems folks around here do it all the time. How do you typically handle the payment side of the transaction? Paypal, wire transfer, cashiers check, or some other means? Just looking for some tips on the safest and most expedient way to handle the payment. We may go with a wire transfer - are there any problems to look out for with that?

I guess this post will serve as sort of an introduction for me, as well. I hope to have a new (to me) Guild to report on here very soon. I have owned a Guild before, an early 90's JF4-12. It was a really cool guitar, but I ended up selling it to fund another purchase. Sometime, I will post the story of how that guitar's headstock was crushed in a bizarre garage door accident...

Anyway, I have been lurking here for a while, trying to soak up as much Guild lore as I can. I'm ready to take the plunge and see how well a nice Guild suits me. I've wanted one forever.

 

[Graham]

Hey Pick,

Mostly I use Paypal because it's very quick for the seller. I have used Postal Money order, then you just wait for the snail mail.

Best-O-Luck

 

[capnjuan]

Hi pickoid and welcome to LTG; the fees are a nuisance but PayPal is the fastest way to get $ into someone else's hands ... everything else involves the mail and waiting for checks to clear. Good luck and welcome! J

 

[geoguy]

My most recent purchase, from a LTG forum member, was made with a personal check. Presumably my check cleared, because he sent the guitar & I haven't heard any complaints . . . :mrgreen:

My other on-line purchases have all been paid with either paypal (e.g. ebay auctions), or a personal credit card given to the seller over the phone (in that case, the seller had an actual music store, but advertised some items on-line). In either case, the seller will likely be charged a fee equal to a couple percent of the money that was sent via paypal.

I typically use wire transfers to pay overseas vendors from whom I purchase earth science instruments for work. That should be a safe way for both of you, although there are also some fees involved (more expensive overseas than within the US). Check with your bank re: the fees they will actually charge you.

Welcome, btw . . . and remember to post some photos of your new acquisition!

 

[jazzmang]

I've used Paypal for all transactions. Me and the seller usually split the paypal transaction fee 50/50, as both of us are paying for the added security of paypal.

Has always worked out OK.

 

[tjmangum]

I've used Paypal for all transactions. Me and the seller usually split the paypal transaction fee 50/50, as both of us are paying for the added security of paypal.
Has always worked out OK.

Ditto here. Makes it easy all the way around.
tj

 

[killdeer43]

PayPal works best for me and cuts to the chase with a minimum of hassles. One of the great things about PP is that you can set up a credit account and pick up a new Guild even if you don't have the money!! :wink: :wink:

Joe

 

[Taylor Martin Guild]

How and where do you set up a Pay Pal acount?

 

[capnjuan]

https://www.paypal.com/

J

 

[chazmo]

If you're dealing with a seller in good standing, say, here... I'd recommend personal or cashier's check. Why let PayPal take a chunk (one of my pet peeves)?

That's just me. It depends on what kind of protection you think you need or want.

 

[GardMan]

Most of my eBay transactions have been via PayPal... and yes, the fees are a pain. I would certainly decide ahead of time who would bear the cost of the fees (roll them into the sale price, split them, or whatever)... just so it's clear (be aware that any international payment, even to Canada, costs even more...a "cross border" fee is imposed).

Another alternative to a cashier's check is a US Postal Service Money Order. It is my understanding (I may be wrong) that these are less likely to be fraudulent... I have rec'd them for eBay sales on several occasions, and my credit union was able to call and verify their authenticity within a few days of the issue date, which usually meant by the time I rec'd them they could be immediately cleared w/o a hold on the deposit. Of course, the ones I re'cd were never for more than ~$50.

Good luck!
Dave

 

[CantPlayaLick]

I bought a guitar online recently and sent the seller a Cashier's Check. He took it to a local branch of the same Bank and they cashed it on the spot. No check clearing time needed, so I got the guitar quicker!

I have an online business and I accept Paypal and Wire Transfers for purchases. Both cost me a fair amount in fees but at least I'm getting paid ...

Bill

 

[Qvart]

Usually it's been PayPal. Quick and easy. Fees for the person receiving the money, none for the person paying so you might work out splitting them or whatever. Or chalk it up to the cost of doing business.

There's also a certified check from your bank. Again, you have to send it snail mail but the funds are guaranteed so there's no need to wait for the funds to clear before shipping. But there's a fee for that too depending on your bank account. Some banks/accounts waive the fees. I think the one time I paid with a certified check the fee was lower than when I sold a guitar to an LTG'er and paid the PayPal fees.

Regardless, keep a record of all the correspondence and everything should work out fine, especially (we hope) if it's between LTG'ers.

Enjoy!

 

[chazmo]

I bought a guitar online recently and sent the seller a Cashier's Check. He took it to a local branch of the same Bank and they cashed it on the spot. No check clearing time needed, so I got the guitar quicker!

I have an online business and I accept Paypal and Wire Transfers for purchases. Both cost me a fair amount in fees but at least I'm getting paid ...

Bill

That, by the way, is very risky for the seller. No check is actually cleared that quickly. The bank may have credited him the funds, but they will come after him if the check bounces later (which it can).

 

[Cypress Knee]

I think Paypal is the easiest for most people, but as a seller I would prefer a personal check that both of us are satisfied waiting until it clears the bank. Ebay fees are high, and the paypal fees on top of that add salt to an open wound.

I have a non-music related retail shop, and we pay a lot of money in credit card transaction fees. A lot. So you prefer cash first, and because I have good clientele, checks second, because you save anywhere from 1.5% to 3+% just on credit card transaction fees that the buyer never sees.

Also, the Paypal security feature is a joke. I had a transaction with an unhappy buyer earlier this year, and I told him to send the guitar back for a full refund. He didn't want that, he wanted me to pay him a partial refund because he claimed the guitar wasn't worth what he paid.

All that happened is that after two months, Paypal decided in the buyer's favor that the item wasn't as described, and he should send it back for a full refund. That was what I offered months ago, so I don't see how it was in the buyer's favor. The end result was the buyer had the guitar for over two months (I suspect he will keep it, I haven't heard anything since the decision) but Paypal has kept my money in a special account all this time, earning interest for them I suppose. Also, it may have been a scam, with the buyer hoping that I was distressed enough post-sale to give into his demands for a couple hundred dollar rebate and a bit chagrined that I could wait it out.

In a previous thread someone mentioned an escrow service, that seems much more fair. The buyer sends the money to the escrow service, and then if all is not as described, sends the instrument back - immediately. The seller doesn't get the funds until the buyer tells the escrow service that all is well in a prescribed length of time, and if it isn't, he has to ship the guitar back immediately - not three months later.

It seems that the seller should be able to charge the buyer rental fees if he doesn't ship back ASAP.

But having said all that, as a seller I would prefer not to pay Paypal or credit card fees, and can wait a week for a check to clear the bank. But as a buyer, I want it now, so Paypal makes better sense.

Just my .02 tonight.

CK

 

[TonyT]

I just send the money to Pam, through a middle man.

 

[Graham]

I just send the money to Pam, through a middle man.

:lol: :lol: :lol: