An escrow service reduces the risk for both sides: the highest bidder transfers the purchase price to the escrow agent, the seller dispatches the goods only after the credit has been received, and the buyer releases the money once the goods have been inspected. The fees are usually borne by the buyer; in Germany, Ebay worked with iloxx Safetrade for this purpose in 2004. It is useful above all between private individuals, since commercial sellers are in any case subject to a fourteen-day right of return. Caution: fraudsters operate their own websites with bogus escrow services. The trick works in both directions – either the buyer transfers money to a sham company, or the seller receives a forged confirmation of receipt a few minutes after giving his agreement, sends the goods and never sees any money.
Cash on delivery causes higher costs but offers no real security: the only thing guaranteed is that a parcel arrives, not what is inside it. It is likewise unfavourable for the seller, because if acceptance is refused he is left with the high shipping costs. Cash transfer services, which are popular for transactions abroad, are simple and inexpensive, but they allow the recipient to receive payments anonymously and are therefore readily demanded by fraudsters.
As a seller, one dispatches the goods only after the amount has been credited to one's own account. Faxed transfer slips or screenshots of a supposed online transfer are frequently forged, and excuses such as a birthday coming up serve only to bring the dispatch forward.