Payment Method

Advantage

Disadvantage

Online payment methods
specifically Paypal and Paymate.

• Immediate and convenient – integrated into the Trading Post® checkout flow
• Buyer and seller financial details are kept secure and not revealed to either party
• Accepts different funding methods (e.g. credit card; bank account)
• Proof of payment available
• Protection provided against chargebacks under certain conditions
• Some payments can be made directly into the seller’s bank account
• Buyers value the payment protection available (based on certain criteria)

• Both buyer and seller can be liable for payment processing fees

Credit Cards

• Payments are immediate, secure and convenient for both buyer and seller
• Proof of payment easily available
• Well known, familiar and generally accepted payment method
• Some financial institutions provide payment protection

• Only available to sellers with their own merchant credit card account or  those who use a third-party credit card processor
• Seller pays credit card processing fees
• Vulnerable to chargebacks
• Buyers may feel uncomfortable disclosing their financial details to sellers

• ‘Inspect & Collect’
• The buyer meets the seller and has the opportunity to inspect the item before paying for it.

• Secure for both buyers and sellers
• Easily understood by buyers and sellers alike

• No proof of payment or proof of delivery

Bank Deposit

• Payments are immediate and convenient for both buyer and seller
• Transfers are generally free (no fees)
• Proof of payment available
• Well known, familiar and generally accepted payment method

• Sellers may feel uncomfortable disclosing their financial details to buyers
• Buyers may feel reluctant to use bank deposit as they have no payment protection

Cheque or Money Order

• Proof of payment available
• Money orders can be immediately cashed at Australia Post outlets
• Well known, familiar and generally accepted payment methods
• Bank/ purchase fees are payable by buyer

• Payment on some cheques can be stopped
• Delays at various stages in the process (cheque to arrive via mail; funds to clear)
• Some buyer’s financial details may be revealed to seller

Escrow services
These are third-party services that hold a buyer’s money until the buyer receives delivery of the goods, at which time the money is passed on to the seller. Similar services such as Australia Post™’s Cash on Delivery are also permitted.
Be sure to look into reputable services before you use this payment option.

• Substantial protection for both sides: seller receives payment once the buyer approves item

• Service fees may be payable by both buyer and seller (and are generally expensive)
• Processes not readily understood by buyers and sellers
• Few well known or established brands exist
• Fake escrow sites can be set up by fraudsters
• Sellers may experience some delays in payment