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After the Auction: Choosing Payment Methods

Whether a seller has limited or flexible payment options can often influence your decision to place a bid--or not to place one--on a particular item. With that in mind, as a buyer you'll be regularly confronted with a choice of payment possibilities when you win an auction. Personal check? Money order? Or do you want to go the credit card route? Read on for brief overviews of the various methods and then decide which one is best for you.

Cash: Enter at Own Risk
Yes, some sellers do accept cash, and yes, there are buyers out there who think that this is an easy, quick, and hassle-free way to pay for auction items. But we advise against cash transactions. Why? Simple. You have no record of your payment once it's sent out and therefore no recourse should the deal turn sour (and we've all heard about those padded envelopes disappearing in the mail). If a seller accepts cash only, take your bid and business somewhere else.

Certify It
Money orders and cashier's checks are commonly accepted by sellers, who like the security they provide--no waiting for personal checks to clear, and no worries about bounced checks. For buyers, though, they cost money and are somewhat inconvenient as they entail trips to the bank (cashier's check or money order) and post office (money order). In terms of cost, cashier's checks run in the $4 to $6 range, and the amount varies from bank to bank and state to state (you'll also pay more if you're a nonmember of the bank you get the cashier's check from). Money orders from a financial institution will cost anywhere from $3 to $7, and 80 cents at the post office. As for C.O.D. (collect on delivery), this method allows postal carriers to collect the price and/or postage on merchandise ordered by the addressee (you) when it is delivered. Fees are included, depending on the amount of money to be collected or insurance desired.

If you have a choice of options, it's generally better to use money orders or cashier's checks for higher-priced items. If, for example, you win an auction for a $3 baseball card and the seller accepts personal checks, then it certainly isn't worth your while to pay an additional fee on such a low-priced purchase.

Check, Please
The best thing about personal checks from a buyer's point of view is that they're convenient and don't cost anything. However, as mentioned above, from the seller's vantage point, checks are less than ideal, making the transaction process longer. Still, paying for merchandise by personal check is one of the most utilized methods of payment.

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