Checking Account Pros and Cons
Despite the spreading use of credit and debit cards online, personal checks remain a convenient and popular choice when paying for auction purchases. Many people feel comfortable with the time-honored process of writing and mailing a check. After all, that is how they have paid their grocers, doctors, utility providers, and credit card companies for decades.
Will personal checks always be accepted as a form of payment?
Some eBay sellers will not take a check from a new buyer until the newcomer has won a few bids and gotten some positive feedback posted.
Checks provide a paper trail if there is a question or dispute. Unfortunately, the cost of that paper trail keeps getting steeper, as banks continue to hike their service fees and check printing fees.
If you plan to be a frequent buyer on eBay and other online auctions, you will probably need to consider some of the other payment options that are faster and cheaper than mailing a check.
Check, Please
Buyers have several good reasons to pay eBay sellers and other auction sellers with personal checks:
Checks provide a record of purchase.
Checks can be traced to a particular mailing address.
Banks typically offer a stop-payment service (for a fee), if a problem arises before a check is cashed.
The auction site may offer certain degrees of buyer protection when a winning bid is paid with a check.
Some online auctions offer no protections to buyers, except a reminder of
Delay of Game
Time delays, both for the buyer and the seller, are a major drawback to paying by check. Consider these typical transaction bottlenecks:
Your check can be lost in the mail, stolen from the mail, or damaged by a mail-processing machine.
A seller typically will wait until your check has cleared before sending your merchandise. Count on a shipping delay of two weeks, possibly longer, after you mail your check.
Some auction sellers will not accept personal checks, because they prefer the faster transaction completions available through other payment means, such as credit cards or online payment services.
Recovering a bad check can be time-consuming and difficult, especially across state lines or international boundaries. So, don't be surprised if you encounter auction sellers who have had negative experiences with personal-check payments and no longer accept checks, period.
Even if you rush a check to a seller by Express Mail or an overnight delivery service, the seller will likely still want to ensure that your payment has cleared before shipping your merchandise. And you will have paid double-digit postage or delivery charges for flying a wisp of paper hundreds or even thousands of miles to the seller.
If you are in a hurry to get your auction purchases, definitely use a faster and cheaper way to pay, such as a check card.
Check Cards
Most banks now issue check cards. These are debit cards tied directly to customers' checking accounts. When you pay with a check card, the purchase amount is automatically deducted from your checking account. The transaction is detailed by merchant name, date, and amount in your monthly bank statement. In online auction transactions, you typically receive a detailed receipt via e-mail after you pay.
If you pay with a check card instead of a check, you don't have to give sensitive personal information, such as your address, phone number, and driver's license number, to a stranger. Also, check cards usually have protections that limit your liability if your card is lost or stolen and used without your permission.
Check cards often are branded with Visa, MasterCard, or other credit card company logos. Typically, where credit cards are accepted, you can use a check card, but it will have to be one of the brands honored by the merchant. For example, if an online auction seller states that payment by Visa or MasterCard is accepted, a check card bearing the appropriate “brand” can almost always be used to pay.
