Paypal is preferred payment choice for many buyers because Paypal allows buyers to pay instantly for eBay purchases. In this article, we will review using Paypal on eBay from buyer's point of view.Since eBay purchased Paypal, it has become even easier for buyers and sellers to complete auction sales. Buyers like Paypal because they can quickly and easily pay online. In fact, some bidders will only bid on items they can pay for with Paypal.
One thing that confuses buyers is some sellers accept Paypal payments through credit cards, while others only accept transfers. You see, with Paypal a buyer can fund transaction in three ways. This can confuse buyers, and cause problems.
Here's three ways to fund a Paypal transaction:
1. Transfer from a bank account tied to user's Paypal account.
2. Transfer from a Paypal balance.
3. Payment from a Credit Card.
The first two options cost Paypal nothing in processing fees. Credit cards cost about 2 percent to process, and Paypal passes this cost on to merchants. Some eBay sellers do not want to pay this fee for service, so they only accept payments by transfer. This confuses buyers who win auctions and assume a credit card transaction is fine.
Paypal wants users to transfer funds, and not use their credit cards. Not only is this cheaper for Paypal, but there is no risk of a chargeback.
A chargeback is when a buyer reverses charge on a credit card by contacting his bank. Most, maybe all, banks will reverse a credit card charge with little or no investigation if card holder contests charge. The money is taken right out of merchant's bank account -Paypal in this case.