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What Are The Overpayment Schemes

What Are The Overpayment Schemes

Overpayment at first may seem like a good reward for hard work or a great sell. However, the case is quite the contrary. Many people have been conned into an overpayment scheme where they end up losing their money, rather than making a profit. These schemes usually prey on the weak minded and those looking to make some fast money. 

With the invention of the Internet, there are a lot of online transactions. People buy and sell items on Ebay everyday. Selling and purchasing products from online site comes with some hazards as to how reliable sources are. 

When selling a product on Ebay, just like in a newspaper classified section, you rarely ever meet your buyer face to face. This causes for much concern and sometimes fraudulent activity. When selling products to strangers, a deal may happen smoothly, or their can be people that have schemes to get your product and your money. 

A buyer creates an excuse to write a check for more than the selling price. Then they instruct the seller to wire them back the extra money. The check the buyer sends bounces and the seller is then liable for the total amount of the check. 

Assuming the check will process can cause headaches and a loss of money. It takes time for the bank to be notified whether or not a check is valid or will bounce. Also, be aware if the buyer asks to use an escrow service that you are unfamiliar with or is outside the country. You can always refuse that service, or even the sale. 

There are several ways to avoid these schemes. 

         Know who you are dealing with. Ask for their information: name, address and phone number. The more information you have on your buyer the less likely they will be trying to scam you. If they do not give you this information, do not sell to them. 

         Do not accept a check for more than the selling price. Although it will be tempting to receive more money than you asked for, it is a good sign that you are in scam. Refuse the overpayment and only deal with the selling price.

         Come up with an appropriate payment method. If you do not like the escrow service the buyer insists on, bring up another one. Even change methods and accept a personal check, or cash, depending on the product. 

         If a wire transfer is part of the deal, refuse. If the buyer only will do the deal with you wiring them money back to an account, it is a clear sign that something is shady. 

         Do not be pressured into acting quickly. If the buyer is urging you to make the transfer quickly, or sell them the product quicker than you are willing, they might be up to something. Take your time with the sell.

There are many other situations that may arise when making a sale online or through a newspaper's classified section such as: being contacted to receive a prize or gift if you sell to a certain buyer, or even when checking try to have it done through a local bank. Be aware of who you are dealing with when making a sale to avoid an overpayment scheme. Having more information and resources will never hurt.



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