[Milsurplus] Re: Money Orders

[Barry Hauser]

I didn't bother with a $25 stop payment on a $40 check.  It was sent to 
someone with good feedback and I has spoken to on the phone.  It depends 
on the amount and  circumstances as to whether a stop payment is worth 
it.  If a check is cashed fraudulently -- by someone other than the 
payee -- you can challenge it anyway.  In some cases, banks ignore the 
stop payment and you have a bit of a hassle anyway.

Paypal at 2.9% plus 30 cents -- when it comes to on-line auctions -- is 
a MUCH better deal -- that is, if you evaluate the WHOLE deal -- like 
the impact on final selling price. 

If we're just penny-pinching, for many of us, there's no need to go to 
the post office on a regular basis, so a money order is a special trip, 
so figure in the gas, too.

But see my other post re paypal and auctions.  They're very sensitive to 
even one or two bids made vs. not.  Something going for $400 with the 
top bidder's max at $500, then someone comes in for $475 or $525 or 
whatever and the price finals at $480 or $505, etc vs the $400 it would 
have ended at.  Let's say it turns out the winner is paying with paypal 
-- so it's 2.9% of say $500 which is $14.50 plus 30 cents, so $14.80 -- 
the seller lays out to get $100 more for his item.  Sometimes less of a 
factor, sometimes way more.  Even the failed bids of the paypallers 
drives the price up.  And the high bidder doesn't have to have cash in 
his pocket to cover his bid, so it can be as high as his credit line 
(and state of mind) will allow.

The higher the selling price range, generally the greater the paypal 
effect (higher final price), but can also affect small things which can 
easily for double - -like $20 vs $10 -- in a heartbeat, also due to the 
convenience and quicker shipping aspect of things.  Do the math -- 2.9% 
of $20 plus 30 cents for 58 cents plus 30 cents -- 88 cents out of the 
seller's pocket to sell for $10 more -- much better by $9.12 net.  Don't 
take my word for it -- look at bid histories on completed auctions 
paypal vs. not.  You have to look at a lot of them as ebay is 90% paypal 
nowadays. 

A somewhat similar dynamic can be found with private sales, such as on 
this and other lists.  A seller might offer something initially for one 
price, then drop it 20% when it doesn't sell.  If I see something I want 
I sometimes ask if I can pay with paypal -- and offer to cover the fee.  
Speeds things up.  Seller knows he's got his money, doesn't have to 
wait/match up the checks to the item(s), and so forth.

On the other tack -- USPS and most other MO's require going somewhere 
with the cash in your pocket.  NBD for small change, but $500-600, and 
so on, represents some risk if you're not used to it.

I've written too much on this and most people already know all this -- 
you can see by the proportion of paypal auctions -- so doesn't even need 
my 2 cents. The mail order catalogers discovered long ago, that it was 
well worth the fees and the small percentage of chargebacks to offer CC 
-- and, of course, the competition was doing it.  Actually, the 2.9% is 
relatively low.  Many retailers pay a higher "merchant fee" plus fixed 
monthly charges, especially for American Express (was as high as 8% as I 
recall).

Barry


BTW - What's $1/1000 -- well, mostly -- USPS MO is $1.05 for up to $500, 
$1.50 for $500-1000.   Add 41 cents to get it there or Priority Mail it 
to make sure it doesn't get turned into confetti in the mail stream.


J Forster wrote:
> Barry Hauser wrote:
>
>   
>> [snip]
>>
>> Had a check go missing recently -- just wrote another -- NBD.
>>
>> Barry
>>     
>
> I had a check go missing recently too. It cost $25 for a stop payment order.  $25 buys a LOT of USPS MOs.
>
> Also, Paypal takes almost 3%. USPS takes about $1.00 /1000.  $1/1000 is a MUCH better deal than PayPal  offers on every payment over $30.
>
> -John
>
>
>