Question about selling on Ebay- "confirmed" paypal payments?

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monash65

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Just about to start selling on ebay, was looking around other postings for similar items to compare those listings to what I am selling, I noticed that a lot of the auctions say something like "we only accept payment from confirmed US Paypal accounts" or "verified Paypal accounts".

So is this important? I have a paypal account though its not verified (my bank account is not linked) so I guess I can receive payments through Paypal and then ask Paypal to send me a check. But why is it important that the buyer be verified or confirmed, is it a fraud thing or something? And how can I check that they are confirmed and everything is above board if they send me a payment? I mean, is it possible that someone who is not verified asks me to send to their address when really I should have sent it to someone elses address, and the item gets stolen or whatever?

Thanks for any input on this. The items I'm selling are typically over $100 each, so I'm kinda nervous about doing this.
 
From the PayPal help pages:

What does it mean to be Verified?

Verification increases the security of the PayPal network. Verified members have successfully completed PayPal's verification system to establish their identity with us. The verification process varies by country or region. For example, in the U.S., a Verified member has confirmed a bank account with PayPal. In Germany, a Verified member has completed a bank transfer or the Expanded Use Process. In most countries and regions where PayPal is available, a Verified member has added a credit card and completed the Expanded Use process.


Why does PayPal ask its members to become Verified?

PayPal encourages members to become Verified to increase trust and safety in our community. Because financial institutions screen their account holders, PayPal's verification process increases security when you pay parties you do not know.


Do I have to become Verified?

Once you have reached your sending limit with your PayPal account, you must become Verified to continue sending money with our service.


Can I pay with my bank account?

Yes. When you add your bank account, it becomes your default funding source for PayPal purchases when your PayPal account balance isn't enough to cover the transaction. You can always select other available funding sources at the time of purchase.


How does verification benefit me?

Verification gives you more information about the people with whom you transact through PayPal, so you may make more informed decisions. PayPal encourages members to become Verified to build trust in our community.


How do I take advantage of PayPal's verification process?

There are several ways to take advantage of PayPal's verification process and decrease your fraud risks:

When you receive a payment: Login to your account and go to the History subtab of the "My Account" tab. Find the payment in question and choose the status link (e.g. "Pending") in the Status column. This will take you to a payment details page. Next to the sender's name, you will find their verification status (Verified, Unverified).
When you send a payment: As you are sending a payment, on the "Send Money - check the details of your payment" page, a reputation link is provided where you may view the recipient's status (Verified, Unverified).

Note: PayPal's verification system does not constitute an endorsement of a member, nor a guarantee of a member's business practices. You should always consider other indicators when evaluating members, including length of PayPal membership and reputation scores (on eBay or other shopping sites, if applicable).
 
Thanks for the info. I guess what I'm really trying to find out is, what could go wrong for me as a seller if I accept a payment from someone who isn't verified and I send the item to the non verified address? Anyone have any experience with something like that?

I ask because I'm wondering how many people bidding on my item will really bother to link up their bank accounts to Paypal to become verified. I have a feeling I will be dealing with people who might be okay, but they might not have gone through all of Paypal's hoops...
 
[quote name='monash65']Thanks for the info. I guess what I'm really trying to find out is, what could go wrong for me as a seller if I accept a payment from someone who isn't verified and I send the item to the non verified address? Anyone have any experience with something like that?

I ask because I'm wondering how many people bidding on my item will really bother to link up their bank accounts to Paypal to become verified. I have a feeling I will be dealing with people who might be okay, but they might not have gone through all of Paypal's hoops...[/QUOTE]

It's a valid concern. Basically, if you are selling something on eBay and accept PayPal payments, you're covered through both services. However, should something go awry with receiving a payment, it will probably take a bit longer (a few weeks) to receive a refund if the payment was from an unverified account.

The things you should look out for are bidders who want to pay by e-check. That type of payment takes several days to clear. Do NOT ship out until the payment has cleared, otherwise they can recall the payment and then you've been had.

I always like to send a quick note to the buyer just to make sure they're on the level. Make it simple, like a request to re-verify their shipping address (helped with my first half.com "sale" which turned out to be a bogus buyer). A prompt reply usually puts both parties at ease.
 
Thanks, really helpful advice. Especially the re-verify the address email (don't know why they never occurred to me).
 
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