Peer-to-peer (P2P) payment services like Venmo, PayPal, and Zelle have become the go-to choice for many who make person-to-person purchases\/sales via online platforms.\u00a0 When buying or selling through Facebook Marketplace, Craigslist, OfferUp or similar marketplaces, using a P2P payment service is the most convenient option for many.\u00a0<\/p>\n\n\n\n
However, P2P payment services are also an option that comes with risks. When buying or selling through these platforms, you could do so more securely by using another payment processing solution.<\/p>\n\n\n\n
There are two main risks of using peer-to-peer payment services, neither of which individuals always take into account.<\/p>\n\n\n\n
First, these services generally don\u2019t offer payment protections for in-person purchases that are made via funds transfer.<\/p>\n\n\n\n
Many people have become accustomed to having payment protections when making purchases online. Almost all credit cards offer protection via the option to file a dispute if there\u2019s a problem, and PayPal and eBay made payment protection standard for purchases on the eBay marketplace.<\/p>\n\n\n\n
Peer-to-peer marketplaces such as Facebook Marketplace, Craigslist, and OfferUp don\u2019t have the protective measures in place that eBay and some others do, though.\u00a0 You theoretically need fewer payment protections when you can see the item in person<\/a> (and you always should).\u00a0<\/p>\n\n\n\n Second, these transactions between individuals are technically e-commerce transactions (i.e., commercial transactions).\u00a0 A good is being exchanged for monetary compensation, which is a commercial sale of said good.<\/p>\n\n\n\n The aforementioned peer-to-peer payment services generally don\u2019t allow for commercial transactions on a personal account (which is what most people use). While it might be unlikely, getting your account flagged for a commercial transaction can have serious consequences, including:<\/p>\n\n\n\n While the risk may seem small for a single transaction, it\u2019s always possible. The risk, of course, increases the more you buy\/sell and the more valuable the items. Even a single transaction that\u2019s flagged could cause massive problems \u2014 especially if you\u2019re dependent upon the service.<\/p>\n\n\n\n In light of these risks, there are a few potential payment solutions for when you\u2019re buying\/selling on these platforms.<\/p>\n\n\n\n This simplest solution is good old-fashioned cash. Cash isn\u2019t going to be held up by a payment processor, and it\u2019s not going to get any account flagged for potential misuse. It has downsides, like not providing buyer protection and potentially being stolen before the transaction, but has long been a preferred method for these types of sales.<\/p>\n\n\n\n Many people have become accustomed to having payment protections when making purchases online. Consider cash if you\u2019re getting something that can be fully checked out at the meet-up location (e.g., not a computer that requires extensive testing), and the item isn\u2019t too valuable. <\/p>\n\n\n\n When something is much more valuable, you can use a cashier\u2019s check instead of actual cash. A cashier\u2019s check can be made out to a specific person, so it can\u2019t be easily stolen by another party. It\u2019s obtained with cash, so sellers know that it\u2019s good and will clear.<\/p>\n\n\n\n If you\u2019re only buying occasional items that don\u2019t cost too much, you might actually consider using a peer-to-peer payment service. This isn\u2019t without the potential risk of being flagged, but you could use a service that\u2019s only for these transactions. It\u2019s unlikely that your account will be flagged, you shouldn\u2019t lose too much if it is and you can still use another one for other types of transactions.<\/p>\n\n\n\n Should you still choose to use a P2P service, Consumer Reports has found Apple Cash and Cash App more secure than either Venmo or Zelle.<\/p>\n\n\n\n Using a credit card is the safest and most convenient way to pay for anything, including items purchased on marketplaces like these.\u00a0 A credit card solves the aforementioned problems that P2P payment services present, and it does so more effectively than cash, a cashier\u2019s check, or a less-used P2P service.\u00a0 Credit card processing offers:<\/p>\n\n\n\n Credit cards are usually viewed as only for traditional purchases from a store or service, but the commercial nature of purchasing on these platforms likewise is what credit cards are for.\u00a0 Additionally, solutions like Square have made credit cards more and more feasible. With easy setups and affordable fees, a small-business-focused credit card solution can certainly be used to buy and sell on marketplaces.<\/p>\n\n\n\n No matter how you pay for something sold on Facebook Marketplace<\/a>, Craigslist, or OfferUp, be safe at all times.\u00a0 Safe practices extend beyond merely the method of payment.\u00a0 Make sure you\u2019re following best practices like:<\/p>\n\n\n\n Before you next make an offer on a marketplace listing, consider how you should pay for it.\u00a0 P2P payment processing is convenient, but a credit card or other form of payment could be better.\u00a0 Whatever you decide, be safe, and good luck finding bargains.<\/p>\n\n\n\n Sources:<\/strong><\/p>\n\n\n\n Consumer Reports – CR Finds Potential Consumer Risks for Users of Apple Cash, Cash App, Venmo, and Zelle<\/a><\/p>\n\n\n\n Investopedia – E-commerce Defined: Types, Histor<\/a>y<\/a>, and Examples<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" Regularly buy via online marketplaces? Find out why P2P payment services might not fully protect you, and what you should use instead.<\/p>\n","protected":false},"author":33,"featured_media":27506,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[614],"tags":[],"class_list":["post-27505","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-safety"],"yoast_head":"\nPotential for commercial red flag<\/h3>\n\n\n\n
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Payment Solutions for Marketplace Buying and Selling<\/h2>\n\n\n\n
Good old-fashioned cash<\/h3>\n\n\n\n
P2P payment services<\/h3>\n\n\n\n
Credit card processing<\/h3>\n\n\n\n
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Be Safe<\/h2>\n\n\n\n
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