How Not to Fool Yourself When Selling Things Online
If you’ve been bitten by a spring cleaning bug and want to clean up some of your unwanted books , say, or other possessions, you need to be careful about how (and to whom) you sell your old stuff.
At Lifehacker, we take spring cleaning very seriously. We are far from missing out on an opportunity to refresh, reorganize and streamline our home life. We’re also very excited to hit the reset button with our technology, take a close look at our finances, and get the better of our day-to-day habits that have gotten a little musty. Welcome to Spring Cleaning Week as we clear away the winter cobwebs and set the stage for the sunny days ahead. Let’s clean up, okay?
While electronic payment methods such as PayPal, Venmo, or Zelle make it easier to send and receive money, they also make it easier to be scammed to be scammed. Make sure you have received cash in your account before transferring an item.
“By using P2P payment services to sell goods to strangers, you run the risk of money not being transferred,” says Kimberly Palmer, personal finance expert at NerdWallet. “If you find that the money you receive has not been repaid and is not in your account, there is little you can do and you may never see that money again.”
This is something to be aware of, in particular about Venmo and Zelle. What usually happens is that once a buyer transfers money, they can cancel the fee (in fact, PayPal Inc., which owns Venmo, just settled a lawsuit with the FTC related to this). In other cases, according to USA Today , “shoppers used stolen credit cards or hacked accounts that were then canceled by the payment company.” And you, the seller, cannot do it.
Another version of the scam: the buyer will say that he sent you a transfer via PayPal. You will see a confirmation email, but later you will find out that the money was not sent. An added twist to this is the overpayment, according to the Better Business Bureau . The buyer can “overpay” and ask for the difference to be returned to him. They not only got the TV you are trying to sell, but they also got money.
So just don’t use these apps for such exchanges. In fact, “the use of a personal Venmo account for business or commercial peer-to-peer payments is prohibited by Venmo’s terms of service unless the user has specifically authorized it,” says MarketWatch .
But that’s not just for P2P services. “Likewise, if you receive a check from a customer, wait until it is verified and the money is in your account before shipping the item,” Palmer says. So cash is still the best option.
Here are some more tips from the BBB :
- Don’t accept checks or money orders: When selling to someone you don’t know, it’s safer to accept cash or credit card payments.
- Do not accept overpayments: When selling on Craigslist, eBay, or similar sites, do not accept payments in excess of the selling price, no matter what compelling story the buyer tells you.
- Always confirm that the buyer has paid before handing over the item. Don’t take the customer’s word for it.
- Beware of people who claim to be overseas. In many cases of scams, the scammers claim to be living abroad to avoid personal contact. Consider it a red flag.
And when you do meet to hand over goods, always do it in a public place. Your local police department may have a “safe site” program where you can make an appointment. Unless they take your furniture or anything else from you, never give your address or other personal information. First of all, you want to be safe.