There is a way for sellers to accept money on paypal and NOT have to pay the horrendous fees that comes with accepting money through paypal. This is referred to as having "cleared funds".
Normally, if a seller accepts payments through paypal they have to upgrade to a premier account. This means that out of every transaction 3.4% + 20 pence go to paypal. If you sold a camera for £200 they would take £7 out of your winnings on top of all the ebay fees.
But if you don't upgrade, there's a way to still accept money. SELLER: DO NOT UPGRADE TO A PREMIER ACCOUNT! Just stick with personal account for cleared funds to work!
Just write you require "cleared funds" if using paypal into the auction and link it to this article!
Here's how it works:
The buyer must have a bank account linked to paypal. They then transfer the appropriate money to THEIR paypal account first which normally doesn't take any time at all if they already had a bank account set up with paypal. Then, once their paypal account shows the appropriate amount, they can click "pay now" in ebay just as normal.
The main difference here is that the money travels
from bank account -> buyer paypal account -> seller paypal account.
ANY payments the buyer makes through paypal without having cleared funds means the money travels directly
from CREDIT/DEBIT CARD -> SELLER PAYPAL ACCOUNT.
SELLERS REQUIRING CLEARED FUNDS CANNOT ACCEPT ANY PAYPAL PAYMENTS THAT COME OUT OF CREDIT OR DEBIT CARDS!
CAUTION: If the buyer does not have a bank account associated with paypal, the process of doing so may take up to 7 working days! SO PLAN AHEAD! How to associate a bank account with paypal? JUST CLICK ON "ADD FUNDS" AND PAYPAL WILL TAKE YOU THROUGH THE PROCESS.
Let's do this with a detailed example: Let's assume Mr. Jones bought a camera from Mr. Smith for £200 on ebay. Mr. Smith wants cleared funds if the buyer uses paypal.
So Mr. Jones does this: He goes to www.paypal.com and logs in. He then clicks on "ADD FUNDS" on the top tab and transfers £200 from his bank account onto his paypal account. Now his paypal account shows A BALANCE OF £200! He then logs onto ebay, and pays normally like he always does. DONE!
Pro's and Con's of "cleared funds"
- NO paypal fees for the seller.
- Safe for seller because the money was transferred into the buyers paypal account first meaning he/she's got a bank account, ie traceable.
- NO additional fees for the buyer. Just a couple of clicks more on the paypal website, that's all
- The auction is eligible for standard paypal protection, not enhanced paypal protection which is reserved for premier/business accounts.
- You have to wait 5-7 business days if you didn't have a bank account attached to paypal.