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One of the hardest parts of any Usenet Marketplace sale is the exchange of goods for cash. How can both buyer and seller be assured of fair treatment?
The Safest Ways to Ship for
Buyer and SellerCOD (Collect On Delivery)
small and medium transactions
COD is the Usenet Marketplace standard for transactions
too small for a third party escrow service.
Federal Express,
United Parcel Service,
the U.S. Postal Service
, and many other countries' postal carriers offer this
option. In these transactions, the seller ships the item
to the buyer "COD". The buyer then pays the
courier on arrival in exchange for the package. The
courier then forwards the payment to the seller. The
small fee is well worth the security of having the courier
act as an intermediate--the buyer can't receive the
package until he pays, and the seller isn't paid until the
buyer receives the package. This method is not foolproof,
as the buyer usually cannot check the package to make sure
the correct item was sent. Cash and money orders are
usually accepted, but we recommend the buyer pay by check
or cashier's check to be able to stop payment in the event
there is a problem. Unfortunately, COD is not available
for international transactions.
Payment by check or money order
for small transactions
For small items, fast delivery, or if both parties trust
each other, payment by check or money order can be a good method,
although it provides the least security for one of the
parties. Either the buyer sends a check first, seller
sends the goods first, or both agree to send at the same
time. Buyer sending a check first is the most common.
Sometimes, the seller may wait a short time to make sure
the check clears. A money order or cashier's check will
also work, but do not send cash; it is stolen to
easily. Also, a
cancelled check makes a good proof-of-payment if the
seller doesn't deliver. For this reason, we discourage
the practice of having the buyer send half-payment before
receiving the package, and half after. In court, a
cancelled check for the first payment may be enough to
convince a judge that the buyer paid in full. For the
seller, sending the package with a return receipt can
provide added security.
Payment by credit card
Escrow and commercial transactions
This option is only available through authorized
merchants, but it is the means of choice when available.
This is the safest means for the buyer, because he can
appeal to the credit card company if the merchandise is
faulty. Meanwhile the seller is guaranteed payment by
the bank.
Escrow
Medium to large transactions and international sales
For expensive items, additional precautions are
recommended. One good suggestion is escrow. In this
case, a third, trustworthy party acts as an intermediary.
Usually, the intermediary receives the buyer's check, and
notifies the seller to ship the merchandise with a return
receipt addressed to the intermediary. Once the
intermediary receives the receipt, the buyer typically has
a day or two to confirm that the goods are as-advertised,
then the intermediary forwards the payment to the seller.
Sometimes, especially with local transactions, the
intermediary may receive and/or examine the merchandise
directly. Also, some escrow services accept credit cards
for payment, a useful service in international trades.
Your lawyer may offer this service, or you may contact the
following services:
[This list is for information only, and does not imply integrity in these organizations. Escrow services may contact FAQ@fmn.net about this free listing.]
Pay by electronic check
Escrow and commercial transactions
A few companies now accept electronic checks, where you
send them the numbers on the bottom of your check, and they
write a bank draft against your account which they can
deposit immediately, saving a couple days' mailing time.
Companies will usually let you know if they accept this
form of payment in their ads. Most companies which accept
electronic checks also take credit cards. The latter are safer in
the United States. Consumers have limited liability in credit
card fraud, while an unscrupulous seller could empty your
checking account with the electronic check information.
Pick one of these methods; they have traditionally been the safest for both parties. In all cases:
In the case of expensive items, you may also wish to draw up a notarized bill of sale. A bill of sale is proof as to what is being sold and how much is being paid--essentially a legal contract. ejbarr@epix.net has provided a sample bill of sale for free distribution on the Usenet Marketplace.
Parcel CarriersMany major couriers have on-line information about fees and services:
If you know of a link to other couriers, U.S. or other countries, please let us know!
Your best recourse in case of trouble is to contact the other party by e-mail or telephone as soon as the problem arises. Again, the #1 source of difficulty is miscommunication. If that doesn't work, try contacting the other party by e-mail or telephone. And finally, if that doesn't work, try contacting the other party by e-mail or telephone. Get the picture?
True fraud is an extreme rarity on the Internet. Far more often, bullheadedness on the part of one party causes the other to be less than willing to rectify the situation. Approach it as if there were a miscommunication, and not a misrepresentation. And don't forget that people in other countries (or other parts of your country) may take offense to your accusations. If you were as mad as a stampeding elephant, would you want to make the other party satisfied?
While rare, occasionally fraud does occur on the Internet. It is ultimately the buyer and/or seller who must take precautions to ensure fair treatment. Presented here are merely suggestions of means of transaction which worked for others. There is no guarantee that they will work for you. See the next section for more information if you are the victim of an uncooperative merchant.
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