Avoid Cash Transactions in Online Auctions

Online auction sites are by and large safe, mostly due to safety measures undertaken by the administrators of the sites. Of course, the drawback of using these large online auction houses is that the auction site takes a cut of the seller's profit, which often times increases the prices for items. In response to this, a number of smaller, third party auction web sites have sprung up that allow buyers and sellers to interact directly, without mediation from a third party. This has pluses and minuses.

Clearly, using an un-moderated online auction site can result in both higher profits for the seller along with lower prices for the buyer. The real risk comes from the possibility of fraud. This danger is most keenly experienced when a seller requests payment in the form of cash. Cash transactions should absolutely be avoided on the internet.

Cash transactions suffer from a total lack of security. Once the cash leaves your hand, there is no guarantee that you will ever see the product or the money again. There is no way to trace or block a cash transaction, so the buyer really has no leverage once the cash has been sent. Some buyers may take reassurance in the notion that they could use the mailing address to trace the buyer in the event that the transaction turns out to be fraudulent. Unfortunately, true scammers are adept at using other people's addresses for nefarious purposes. Always insist on using electronic forms of payment for online auctions. If the seller will not agree, then look for your items elsewhere.