I have seen WAY TOO MANY posts in the various discussions about people who have purchased a truckload and sent money to a scammer who, subsequently, blocked them and never sent the product. The buyer has lost their money and their product and is left trying to figure out how to get their money back, but rarely do.
It seems that many people getting into this business do not understand the difference between the characteristics of various payment methods. This article is intended to help make this more widely known.
There are a few main ways to send payments. I will discuss the most commonly used ones below. For our discussion purposes, they are going to fall into one of two main groups.
Methods of Payment that Offer Strong Buyer Protections
- Credit Cards
These methods of payment offer the buyer the most protection there is. These methods will go as far as withholding the funds from the seller or taking the money back from the seller’s account if they see fit. For the buyer, this protection is great! These methods should be required to be used any time the buyer is dealing with a newer seller who does not have a well-known reputation. However, because of these strict buyer protections, you must be willing to use other types of payment methods when buying from large, widely-known sellers. Most large, widely-known sellers are not willing to sell to buyers who mandate these types of payment methods be used.
The sellers will not accept these forms of payment for the very reason that the buyer likes them. These payment methods overly-protect the buyer to the point of taking advantage of the seller. For as many underhanded sellers there are in the business, there are just as many underhanded buyers. Legitimate sellers have no reason to take the risk of an underhanded buyer stealing their product. Large sellers treat their customers right and stand behind their sales when needed.
So, what payment methods will large, legitimate sellers accept? Wire transfers are the most common method of payment. Some may also accept ACH payments. You may also be able to pay with a credit card, but this is a less common payment method with large legitimate sellers.
Methods of Payment that Do Not Offer Buyer Protections
- Wire Payments to Bank Account
- ACH Payments to Bank Account
All of the above payment methods are set up so that once the money is sent and delivered, it is 100% DONE. There is no filing of a dispute that will result in the buyer’s money being returned to him. BE VERY CAREFUL with whom you are dealing when using these types of payment methods.
It is not the payment method that makes an underhanded seller bad. As mentioned above, many reputable sellers only accept wires and ACH payments. These payment methods can be safe if you work through a reputable seller. It is the dishonest seller that makes these payment methods dangerous.
How do you solve this? A good start is:
- Do not be in a rush to get the product!
- Ask people for recommendations of the seller and if they have ever done business with that particular person.
- Ask if anyone had a difficult situation with the seller and how the seller handled it.
- Be especially wary of payment methods like CashApp. These payment methods allow for anonymous transactions, so they can give scammers protection and make it hard for you to know just who you’re actually sending money to. With wires and ACH transactions that go directly to bank accounts, there is more of a paper trail.
- NEVER pay a down payment to reserve and hold the merchandise.
After asking questions, be patient and let a few answers come back from multiple people. If no one responds or you get negative feedback, it is probably a sign to not do business with that seller. However, if you decide you have to have what they are selling, then use one of the payment methods listed above that you have protection with. If the seller will not allow that, then you might want to steer clear of that seller.
For any of the reputable sellers involved in the industry, you should have no trouble getting plenty of positive feedback to know that one of the payment methods that offers you less protection is an acceptable method of payment for use with that legitimate seller.
If you have any questions, experiences, or would like to disagree with any of these statements, certainly let us know! These articles are being created for the education and awareness of everyone and to create some good discussions!
This business can be very profitable, but it does not come without risks. As with any start-up business, it takes experience, testing, and adaptation to create success. At the beginning, it takes wise, discerning partners to keep you from making regrettable mistakes early in the game. I hope I have helped prepare you for the beginning stages of your upcoming business venture, and perhaps interested you in developing a relationship with BuyLow Warehouse.
When you're prepared to choose liquidation pallets, finding the right partner can be an advantageous resource. At BuyLow Warehouse, we are dedicated to supporting new liquidation buyers in achieving success. Our proficiency allows us to evaluate your requirements and recommend pallets that suit your needs. In addition, we provide various free resources to assist you in establishing and expanding your business. We're always available to address any inquiries you may have about reselling.