Safe Trading on eBay UK
Created | Updated Oct 11, 2004
For most users, eBay UK offers a convenient market place for buyers and sellers to exchange goods. As eBay has grown, so has the range of such goods from towels to televisions, from hard-disks to houses. However, despite eBay safe trading policies, the number of auctions running at any one time makes it virtually impossible to monitor and fraud often occurs, with both buyers and sellers short-changed. There are however, a few simple guidelines to follow that will dramatically reduce your expose to fraudulent activities. When you buy or sell an item on eBay UK be aware of common pitfalls as well as protection offered by eBay and other parties. The final section of this guide outlines common scams on eBay and is essential reading, especially if you are selling electronic items or those of high value.
Remember the basics:
- check for recent positive feedback on prospective buyers and sellers
- do not respond to emails asking you to disclose your password and/or account information
- do not use an obvious password or hint, such as your birthday or postcode
- use an alpha-numeric password, change it frequently, use seperate passwords for eBay, Paypal, etc.
- if an item seems too good to be true...
eBay Buyer Protection
eBay offers two levels of buyer's protection. If the buyer/seller uses Paypal to perform the transaction that Paypal Buyer Protection applies, (see the section below on Paypal). If you use another payment method then you may be covered by Standard Purchase Protection Programme, see the eBay Help section for details. This method of Protection is not as comprehensive as the Paypal Buyer Protection Programme and an excess is charged. If the transaction does not meet the requirements of the Standard Purchase Protection Programme then the protection is forfeit.
Paypal
Paypal is wholly owned by eBay and is fully integrated with eBay UK. When listing and item, a seller can choose to accept Paypal whereby a Seller can pay via a credit/debit card. Both the buyer and seller will need a Paypal account, but this is quick and easy. Paypal offers a Buyer Protection Programme which states that the buyer will be refunded if the goods do not arrive. If the transaction does not meet the requirements of the Buyer Protection Programme than the protection is forfeit.If believe your Paypal has been used fraudulently or you have not received the goods you may be able to recoup the funds via your credit card company, you will need to contact your credit card directly who may be able to instigate a Chargeback, whereby the transaction will be retrospectively cancelled and your funds will be returned. Both VISA and Mastercard offer this service, via your issuing bank.
On a final note, it is much wiser to ship to a "confirmed" address. This is when Paypal has verified someone's bank details and the address to which the account is registered. When you are paid via Paypal it tells you whether or not the shipping address is confirmed. If in doubt, ask to call them to speak to them and check the number matches with the address via Direct Enquires (online at BT.com) or accept a different payment method. You could opt to state on your auction that you won't ship to an unconfirmed addresses.
Other credit/debit payment services
There are a number of other payment methods. However, beware of fraudulent sites whose purpose is to steal your card details. They appear to function in a similar manner to Paypal. The more reliable and trustworthy ones include NoChex, Fastpay and Moneybookers.com.
Alternative payment methods
Some people opt to pay via cheque/banker's draft/postal order as they do not feel comfortable with online payment methods as described above. You may still be covered under eBay's Standard Purchase Protection Programme as described above however, pursuing a dispute with eBay will require proof such as a copy of the cheque. Disputes aside, it also delays the transaction hence, electronic payment methods as described above are recommended. Never send an item until the cheque is cleared, rather than simply banked.
Do not wire transfer money via Western Union, Moneygram, etc. This method is highly susceptible to fraud. Furthermore, you will be excluded by both eBay and Paypal's protection policies.
Escrow
How it works:
- the buyer pays the money to a trusted 3rd party, (the escrow company)
- the seller ships the goods to the buyer
- the buyer inspects the good
- if the buyer is happy with the goods, the escrow company pays the seller
- if the buyer is unhappy with the goods, the buyer returns the goods to the seller upon which the escrow company refunds the buyer
Escrow is a great way to sell medium to high value items, especially when dealing with buyers/sellers in other countries. No money exchanges hands until both parties are happy. When you place an item for sale on eBay, there is an option to accept Escrow in payment options. eBay only recommends Escrow.com for eBay.co.uk. The fee depends on the cost of the item in question and can be checked by visiting the Escrow Fee Calculator.
Moneybookers.com also offers a reliable Escrow service. It is similar to Paypal and NoChex, i.e. it can used to send and receive money between buyers and sellers which can be debited from credit/debit cards and credited to UK bank accounts.
If you are unsure,do not carry out out the transcation. Additionally, there is some useful information in the eBay Escrow section.
Auction Sniping
Auction sniping is when a third party site electronically bids on your behalf shortly before the auction ends, usually within the last thirty seconds of the auction allowing you to win the auction at the very last moment.This is a growing practice but in order to allow the site to bid on your behalf you must disclose your eBay user ID and password to them.
Many users avoid this, but if you choose this method be vigilant and make sure that the site is genuine. AuctionStealer UK is legitimate and its basic service is free. Alternatively, you can purchase software that resides on your computer that performs the same task without disclosing your details. You'll need to be connected to the internet during the last minute of the auction so this method is more suited to broadband users.
Dispute Resolution
If a dispute arises between a buyer and seller, rather than abandoning the trade eBay suggests that you first use an independent mediator to resolved your dispute. eBay recommends SquareTrade which is an online organisation independent of eBay. The whole process takes place online and is instigated by filing a case. A mediator will not make a decision for you, rather he/she will aid both parties to reach an agreement. This can lead to an amicable resolution for both parties as well as the removal of negative feedback on your account by eBay if one of the parties has been hasty in leaving such feedback.
The process typically takes two weeks. To use SquareTrade's online system is free, but a nominal fee is charged to involve a mediator. For small-value items it isn't really worth using Dispute Resolution. Rather, it is more suited for higher value items such as computers and cars. Also, Dispute Resolution is only really effective if both parties are willing to negotiate, although non-response from the opposite party can lead to the removal of negative feedback.
You may see a SquareTrade seal on an auction listing stating that they a verified seller. Whilst the seal programme is designed to identity reliable sellers, the programme itself offers no protection to buyers whatsoever.
Common Scams
Selling outside of eBay. Someone asks you to end the auction early and sell the item to them directly outside of eBay. Once you have sent the item either the Paypal transaction is reversed or the cheque bounces. Because you have not gone via eBay you are given no protection.Paypal/Shipping abroad. You are asked to ship the item to a country outside the EU or the US. You are paid via an EU/US Paypal account. Once you have shipped the item, it transpires that the Paypal account was hijacked and a Chargeback is instigated. You lose the item and the money. Even if you have already withdrawn the money into your bank account a Chargeback can still take place. Your Paypal account will go into negative balance and they will expect you to bring the account into credit. Most of the scams originate in either Lithuania or Indonesia and use ploys such as "it's a birthday present for my cousin/uncle, please send to them directly". If you sell an electronic item such as a mobile phone you will almost definitely receive an email such as this. Do not even bother replying, ignore them.
Overpayment. You receive funds greater than the cost of the item. The buyer informs you that they have made an error and asks you to return the difference. Once you have returned the additional funds the original payment is then either reversed if paid electronically or the cheque bounces.
Fake escrow sites. One of the most recent scams are fake escrow sites. You ship the goods, but never receive the money. They are dozens of these sites at any one time and even though eBay and legitimate escrow companies are working to shut them down, there are constantly new ones appearing. There are some tell tale signs such as the site not being secure, (no padlock in browser window) or lack of a contact telephone number. Many of the sites look unprofessional, but don't let a slick site fool you. There are far too many fake escrow sites to list here. Instead, have a look at the Escrow section on the eBay Escrow Newsgroup which has lists of fake escrow sites.
Good feedback does not mean you can turn a blind eye to any of the scams outlined below. Many scams are run from hijacked accounts. When checking feedback, make sure it is up to date. Many stolen accounts have been dormant for over six months as it less likely the legitimate user will notice and report the matter to eBay. If you have a query check out the eBay Community section where you can get help and advice from seasoned eBay users. If in doubt, do not proceed with the trade.
When things go wrong
If you are suspicious of a trade you are involved with either as a buyer or a seller first of all don't panic. The first step is to try and contact the buyer/seller via email. Bear in mind that it you send an email at midday you may not get reply till the evening during the working week.
If you have paid for an item, did the seller advise you how long delivery will take? Some sellers ship from either the States or further afield in which case a three to five day delivery timescale is more realistic. This should be stated in the auction listing. Is there a tracking number? If you are sending/receiving a high value item, this is essential. Royal Mail Special Delivery will provide this along with postal insurance. Try to give the buyer or seller the benefit of the doubt as there is more often then not a legitimate reason why the trade has been delayed.
It may be necessary to take the matter further if:
- the buyer/seller does not respond within 48 hours
- a chargeback occurs on something you have already shipped
- you are highly suspicious of a trade/other eBay user
If you have paid for an item and not received it follow eBay Buyer Protection procedure as outlined above. If the dishonest party resides in the UK you should inform the police.
Have you already shipped the goods? Contact the delivery firm and see if they can cancel the delivery en route and return the package to you. You may be charged for this. Make sure you explain that you believe you may be a victim of fraud.
Can your credit card company instigate a chargeback on your behalf? Contact your credit card company for advice. It may be worth contacting your bank, even if you have used a debit card.
If you have paid/received money via Paypal, report the matter to them directly via their website or call them on 08707 307 191. If you have used a different credit/debit payment service contact them directly. It you have paid via Escrow contact your Escrow company immediately.
Be Safe
Other than disclosing your password, there are a number of ways in which your password can be compromised, such as a virus that monitors your keystrokes and then sends them to an unauthorised third party. Always make sure that you computer is secure by:
- starting a virus checker on boot-on such as McAfee or Norton. AVG is also very good and free for personal use. Make sure you run the update program at least once a month
- use a firewall. There are lots to choose from. Sygate and Zonealarm both offer free basic versions
- keep your computer free of spware. Ad-aware is excellent and again is free for personal use
On a final note, ensure you always leave relevant feedback when the sale concludes. It you have been a victim of a scam post a thread in eBay Community to warn others. Good luck and happy trading!
