How does PayPal work?

[rutwan-14]

I am new to here and this is the first time I sell a thing on eBay. If we are doing the Paypal payment, the buyer is paying me directly through PayPal but not through eBay right?

Then how do eBay get paid? Don't they charge me a selling fee?

Are there potential pitfalls that could harm me? Like the buyer asking for a refund but won't mail the product back.

Also this doesn't make sense to me cause how do buyers protect their right then? What if I send them an empty box or defected product and won't refund them, what do they do?

I have seen people saying that eBay hold on to the money and the seller won't have the money until the buyer receivers it which contradicts with what was stated above.

I am just trying to figure out how this works 🙂

[this*old*attic]

PayPal is safe and easy.

The buyer pays you directly (PayPal takes a small fee and commission).

When you are new, they might hold the money until your buyers receive their items. This doesn’t last long.

Ebay bills you every month. I’m on autopayment; I don’t know if that’s required or not.

PayPal offers a debit card so you can use your money right from there. Or you can transfer it to your bank (free, takes a day or 2) or your credit/debit card (instant, 1% fee).

Ebay buyers are protected because your money is frozen if they file a not as described claim.

[tdumonde2014]

You might have more success with your auction if you add some details about your computer. Processor, Hard Drive Size, Memory, etc.

[mam98031]

In addition to what Red posted, you should really get VERY familiar with these links.  Read and study.  Then come on back and ask questions if you need to.

https://www.ebay.com/help/selling/selling/selling?id=4081

https://pages.ebay.com/seller-center/service-and-payments/funds-availability.html

https://pages.ebay.com/seller-center/get-started/seller-fees.html

Welcome to Ebay.  

[fashunu4eeuh]

Hello and welcome.

You asked how buyers are protected from fraudulent sellers. Ebay protects the buyer’s interests thru their Money Back Guarantee policy, see link below. Essentially if the buyer doesn’t receive the item, or they receive something that is different from what the listing stated, eBay will step in and force a refund if the seller does not willingly do so. 

Most eBay policies are geared toward protecting and enhancing the buying experience for shoppers. I strongly recommend reading up on the eBay user agreement and their Money Back Guarantee rules so you will know how best to look out for your selling interests on the platform. Good luck to you in your sales and come back anytime you need help. 

https://www.ebay.com/help/policies/ebay-money-back-guarantee-policy/ebay-money-back-guarantee-policy...

https://www.ebay.com/help/policies/member-behaviour-policies/user-agreement?id=4259

[luckythewinner]

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If we are doing the Paypal payment, the buyer is paying me directly through PayPal but not through eBay right?

Correct. 

Then how do eBay get paid? Don't they charge me a selling fee?

Yes. eBay charges are added to your account and billed monthly. You will need to provide eBay with a payment source to pay those fees. 

Are there potential pitfalls that could harm me? Like the buyer asking for a refund but won't mail the product back.

Yes, if by "harm" you mean you lose the item and pay the cost of shipping it to a thief. Any buyer can steal any item from any eBay seller at any time if he files a fraudulent "not as described" dispute. 

Not only that, but a buyer can file a dispute on either eBay or PayPal. It is easier to steal the item through an eBay dispute, but there is a limited window. PayPal allows a dispute up to 180 days after purchase. 

That being said, I have been selling here for almost 20 years and can count my disputes on one hand. Others have not been so lucky, however. 

Also this doesn't make sense to me cause how do buyers protect their right then? What if I send them an empty box or defected product and won't refund them, what do they do?

Buyers have plenty of protection. They simply file a "not as described" dispute with eBay, and the seller agrees to refund the buyer and the PayPal payment is reversed.

If the seller does not agree to refund the buyer, . eBay almost always finds in the buyer's favor and the PayPal payment is reversed anyway and the buyer received a very damaging black mark for a "case closed without seller resolution. (A handful of these can cost you your ability to sell here). 

If you have already withdrawn the money from PayPal, then you will be billed for the refund (and sent to a collection agency if you do not cover the refund from your payment source.)

I have seen people saying that eBay hold on to the money and the seller won't have the money until the buyer receivers it which contradicts with what was stated above.

When you sell on eBay, you are agreeing to payment holds at eBay's discretion. As part of your agreement with eBay, you give eBay the power to direct PayPal to put a hold on the PayPal transaction associated with an eBay sale.

I am just trying to figure out how this works 

The way it works is that you sell an item, and you eventually get your money if the buyer does not file a dispute. If you are expecting every sale to succeed and to withdraw the money the day after a sale and spend it, you will be terribly disappointed.