Hi Paul,

I think that one reason a lot of people are using paypal is simply because of the insurance and security it offers. I think paypal covers up to $500 for e-fraud and users need to link financial records to their paypal account.

Personally I look for items that accept paypal and avoid ones that are limited to checks or money orders. With paypal there is a very clear paper trail for the payment and you're guaranteed that paypal has records on the person you're buying from. I think ebay only requires an address or something so scams occur relatively often. It just feels safer using a middle man for the money than hoping that some stranger will send off the new keyboard you just sent him a $1000 check for.

Also, paypal is a good way for individuals to use credit cards for person to person transactions. Most major credit cards now offer full protection from internet fraud etc. So, if I'm going to buy an expensive item from someone I don't know, its nice to know that Visa and Paypal are covering me. I think this protection is invaluable in the modern ebay world. Too many times I've been ready to bid on an item and held out because I had a bad feeling about the seller only to check back later on the item and see negative feedback saying that the person never sent the item or something. Its a good place for deals AND scams so I'm looking for all the protection I can get when I'm out there. Paypal helps me feel a little safer.

Just my thoughts....there are good links from paypal and ebay regarding their policies and security.


[This message has been edited by keys81 (edited 01-17-2005).]