Selling goods safely on eBay Setting up a Paypal account

PayPal, the most popular way of receiving payment on eBay, allows you to exchange money with other eBayers without ever having to pass on bank or card details. 

You can choose to have a personal account, which accepts transfers from other PayPal accounts, or a premier account, which also accepts payments from credit and debit cards. You can transfer money in and out of PayPal by various methods, such as a nominated current account.

It's possible to start trading straight away using PayPal but it's worth taking the time to go through a checking procedure to become 'verified'. This means you can hold larger amounts of money in your PayPal account. 

You are also eligible for 'seller protection'. This means that PayPal protects you against buyers falsely saying that they haven't received their goods and claiming their money back through PayPal.

To become verified, PayPal checks you are who you say you are - this can take up to five days. To do this, it transfers two small amounts of money to your bank account and then asks you to confirm how much was sent. Once you have done this, it will usually email you a Pin number and phone you at an agreed time to ask you to confirm it.

Once your account is running, you'll pay a fee of 3.4% of whatever you receive plus another 20p for each transaction. So receiving £50 would cost £1.90. There's also a fee of 25p if you transfer less than £50 out of your PayPal account.