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Selling an item via PayPal with Installments

daintyG

Brilliant_Rock
Joined
Sep 23, 2011
Messages
620
Hello,

I am selling a ring on LT and a potential buyer wants to arrange payment installments via PayPal.

What is PayPal's policy on this? What do I, the seller, need to know to be protected?

Obviously, we would need to specify the payment dates and amounts, and I would not ship until the last payment cleared. What else do I need to know before agreeing to anything?

The buyer also wants to purchase insurance for the shipping of the ring. What is the best way to insure it for him?
 
I would suggest that the buyer apply for "paypal credit" - this will allow them to make installment, interest free payments for six montsand you would have all of your dollars up front. This way everyone is satisfied.
 
I would suggest that the buyer apply for "paypal credit" - this will allow them to make installment, interest free payments for six montsand you would have all of your dollars up front. This way everyone is satisfied.

@Queenie60 Interesting idea! I will look into it!

ETA: Does it affect me if the buyer doesn't make payments? I'm supposing it doesn't. It would only affect me in the case that there was a dispute. This seems like the best option for my buyer and me. Both of us would get protection.
 
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I'm not sure why they'd need to do installments with you when there's PayPal credit available (no interest for 6 months). And no, it doesn't affect you as a seller, that's between the buyer and PayPal.
 
I'm not sure why they'd need to do installments with you when there's PayPal credit available (no interest for 6 months). And no, it doesn't affect you as a seller, that's between the buyer and PayPal.

I would like to add some information regarding PP credit so buyers can beware. If a buyer has not paid for the item in full during that 6 months PP will charge interest based on the original purchase price and not on the balance. So for example- if you owe $50 on a $5000 purchase that has not been paid off- you will be charged the interest on $5000.
 
I would like to add some information regarding PP credit so buyers can beware. If a buyer has not paid for the item in full during that 6 months PP will charge interest based on the original purchase price and not on the balance. So for example- if you owe $50 on a $5000 purchase that has not been paid off- you will be charged the interest on $5000.

Thanks, LisaRN! I'll say something to the buyer so he knows.

I'm not sure why they'd need to do installments with you when there's PayPal credit available (no interest for 6 months). And no, it doesn't affect you as a seller, that's between the buyer and PayPal.

Perhaps he didn't know about PayPal Credit; I hadn't thought of it. I'm under the impression that my buyer is not used to this kind of transaction. It seems like he may be presenting this ring to a future intended, which is so exciting to me!

We are going through with the sale via PayPal Credit. Thanks everyone for your help!
 
OP I would be very suspicious. PayPal has limited protection for sellers. I have a ring for sale online now and have had a few people approach me to buy it with PayPal which have obviously been scams (insisting on PayPal, agreeing to buy the ring without even asking much about it or asking to look at it in person, and a few other things). I read about a lot of PayPal scams online where the buyer claims they did not receive the item and PayPal backs the buyer (better buyer protection) and the seller has to pay the money back. Please be very cautious.
 
OP I would be very suspicious. PayPal has limited protection for sellers. I have a ring for sale online now and have had a few people approach me to buy it with PayPal which have obviously been scams (insisting on PayPal, agreeing to buy the ring without even asking much about it or asking to look at it in person, and a few other things). I read about a lot of PayPal scams online where the buyer claims they did not receive the item and PayPal backs the buyer (better buyer protection) and the seller has to pay the money back. Please be very cautious.

Thank you, ratatat! What causes your suspicion? The request for an installment plan? It didn't take much to persuade him to go with PP Credit rather than an installment plan. I'm planning to get both tracking and signature confirmation. Plus, he would like the item to be insured (which is what I'd want as a buyer, too).

I know what you're saying about scammers who say they're ready to buy without paying any attention to what the item even is. I've conversed with the seller quite a bit now, and he is not like that, though I know it's important not to be too trusting.
 
Hi @daintyG, maybe I'm being a bit cynical! I think having tracking and signature confirmation is a good idea. I did read about how someone received a guitar case, signed off on it, then claimed there was no guitar in the case when they opened it! Buyer got a refund from PayPal seller lost both the money and the guitar. If the person you've been speaking to sounds legit and trustworthy and there's some safeguards it'll probably be fine, I think I am just overly paranoid after the first three replies to my listing were obvious PayPal scams :cry2:
 
OP I would be very suspicious. PayPal has limited protection for sellers. I have a ring for sale online now and have had a few people approach me to buy it with PayPal which have obviously been scams (insisting on PayPal, agreeing to buy the ring without even asking much about it or asking to look at it in person, and a few other things). I read about a lot of PayPal scams online where the buyer claims they did not receive the item and PayPal backs the buyer (better buyer protection) and the seller has to pay the money back. Please be very cautious.
I would be interested in what you think would be the safest way to sell an expensive item. Do you think Ebay would have better protection than just using PayPal?
 
I'm by no means an expert but from everything I've read online it seems like the recommendation is to meet up in person for exchange for cash :-/ obviously this isn't always practical. It just seems like there are a lot of ways to have someone rort the system otherwise. Again this is probably just me being cynical/over cautious ...
 
DON'T DO PAYPAL, DON'T DO EBAY. Theres a policy for 180days return for all purchases. I've had people returning empty boxes and paypal refunded them...
 
DON'T DO PAYPAL, DON'T DO EBAY. Theres a policy for 180days return for all purchases. I've had people returning empty boxes and paypal refunded them...

I've had no problem doing PayPal friends and family for PS'ers. I don't do invoices though. The fees are too high when you are already taking a loss anyway....
 
I've had no problem doing PayPal friends and family for PS'ers. I don't do invoices though. The fees are too high when you are already taking a loss anyway....

They have known to suspend people accounts for no reason whatsoever and have them wait 6 months before releasing their funds. It had happened to me in the past for receiving too much money (3k). With your method, they can still shut you down with the reason of suspicious activities such as laundering money. In other word, they don't like the fact that you are not giving them their cut of 3.4%. I still use Paypal but only for small transactions.
 
Hmmmmm.....never had a problem before. I've sold stuff for $3000 too....
 
DON'T DO PAYPAL, DON'T DO EBAY. Theres a policy for 180days return for all purchases. I've had people returning empty boxes and paypal refunded them...

Welcome to PS, vanstaal. I see you joined yesterday.

I understand your point, but what's the best way, then?
 
I really don't have a better answer to your question because this involves payment installments. But I assume they will apply the same policy of which allow customers to return their items within 180 days of delivery. Remember that Paypal only process the funds, they have no actual contact with the merchandise so they can't for sure know what you have sent or received in return from the buyer...and buyers are usually right according to them. My only advice is to have a lawyer ready when dealing with such valuable item.
 
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