Some eBay payment methods are more secure than others. Before discussing secure ways to pay, it’s best to highlight how not to pay for an item on eBay. If a seller ever asks you to pay with a money order or a cashiers’ check, beware! Once that payment leaves your wallet, it becomes extremely difficult to retrieve.

Another reason that cash or cash wire transfers are generally not the preferred payment method is, if you pay by cash, you are not granted protection under the eBay Standard Purchase Protection Program. You also lack any proof of your payment, and will have virtually no recourse should the deal turn out bad.

eBay's Standard Purchase Protection Program compensates buyers for qualified dealings. There are two situations when a buyer may be compensated. The first is when an item was purchased on eBay, but never received by the buyer. The second is when the item obtained was considerably different from what was described. A very important thing to keep in mind is that eBay will not cover transactions that exceed $200, and they charge $25 for processing the claim.

Because eBay’s protection is limited, a savvy shopper will consider other payment methods that afford more protection to your transactions. Your credit card agreement may offer the security you seek. It could be a good place to start when involved in a sketchy transaction with that Louis Vuitton boutique from Shanghai.

By using a credit card, you have the option to contest a transaction through the credit card company, but it is left to their discretion whether to void the sale or not. Despite the fact that your credit card offers some protection, you must use your common sense when deciding when to release your information. The fewer people that you provide your credit card number to, the safer you are from credit or identity theft.

eBay recommends that you make all your transactions through their partner company Pay Pal, one of the most secure methods of payment for items purchased on eBay. What makes PayPal more secure is the fact that you are only giving your credit card information to one party, rather that giving that sacred information to multifarious sellers.

PayPal users will complete their eBay purchases via their PayPal account. Using a payment service is more secure and more expedient than providing financial information to numerous sites of individual sellers. Every time you provide your financial information to a site you increase your odds of a breech of privacy occurring.

The reason PayPal can offer you such security is because they keep all your information in encrypted form. This data is stored on computers that are not connected to the internet. The only people who can view your information are the employees who complete your transactions for you.

Additionally there are other benefits to using PayPal. Part of the PayPal User Agreement provides for a Buyer Protection plan. The plan guarantees $1,000 of coverage against fraud on each qualified eBay purchase. Another perk that may decrease your eBay shopping stress is that PayPal agrees not to sell your information to third parties. You can relax and feel safe that your inbox will not be stuffed with ads prompting you to get to know “Amber” (or another equally as exotic person) better.

For more information, check out the eBay Learning Center for online tutorials, and eBay University to help you learn more about buying and selling on eBay.