Thanks to some recent problems, RFF Classifieds have been revised as follows:
2) PAYMENTS to Seller: Paypal and postal money orders are good ways to make payment and have some recourse if the item is not as advertised or not received. It is strongly recommended that buyers do NOT make payment by bank wire transfer or Western Union, as this allows the buyer little recourse if there are problems. Sellers may not require payment by bank wire transfer or Western Union.
Thanks
Stephen
These are reasonable propositions, however I want to make a few points. Wire transfers are very common in Europe where banks tend to be considerably more small-customer friendly. Here in the US they are expensive, often a hassle, and yes, sometimes a vehicle for fraud. PayPal offers little protection for the buyer or seller. PayPal "buyer protection" applies to the seller and to purchases made through eBay only. There was a time early in the life of PayPal where this protection was for all usage. It has limitations, even with eBay purchases however. I regard it primarily as a marketing gimmick. For some reason the concept of "buyer protection" for PayPal outside of eBay seems to persist, a tribute to PayPal's savvy marketing.
If a buyer uses a credit card to pay through PayPal the credit card charge can be reversed by an unhappy or fraudulent buyer regardless of what PayPal wants. This is one reason PayPal tries to dissuade the use of credit cards. This is a great danger for sellers taking PayPal for expensive items - they can lose everything in a chargeback and it has happened to many.
USPS Money orders can be cashed if the post office has the funds on hand. This puts cash in the hands of the sellers, so there is little risk for sellers so long as they make sure they can cash them before they ship the goods. USPS Money order fraud is rampant, so I recommend cashing the MO first!
Western Union transfers, like most other payment systems have been savaged by the PayPal/eBay marketeers since they compete with PayPal. What is rarely pointed out however is that they are perfectly safe for the sellers since cash is put in their hands and quickly. Western Union is most useful when selling to individuals in countries that have broken postal systems and are risky to ship to, or where the banking systems are underdeveloped (and generally both). This affords those individuals who can buy in those countries that possibility when otherwise they could not (assuming they are willing to accept the risk and expense). This is a common money transfer system in the third world, where cash is still king, and individuals are generally accepting of it.
In summary, there is no current payment system that can protect both parties. All systems either share risk or slant risk asymmetrically to the buyer or seller. Trust is therefore the most important element. The greater the amount of money that is changing hands the greater that element of trust should be. Personally I have a HIGH level of trust in members here, almost without exception.