Facebook Marketplace has become an increasingly popular platform for buying and selling items locally. With over 1 billion monthly active users on Facebook, Marketplace gives sellers access to a huge audience of potential buyers. One of the key things sellers need to decide when listing items on Marketplace is which payment methods to accept. There are pros and cons to different payment options, so what is the best method of payment to use for Marketplace transactions?
Cash
Accepting cash payments is one of the most common and straightforward options on Marketplace. Here are some of the key pros and cons of accepting cash:
Pros
- Cash is convenient and universal – Most buyers will have cash on hand or can easily get it prior to meeting up.
- No fees – There are no processing or transaction fees when accepting cash.
- Immediate payment – You receive the money right away upon exchanging the cash.
Cons
- Security concerns – Accepting large cash transactions can present security and safety issues.
- No buyer protections – If the item is not as described, there is no way to dispute the payment.
- Inconvenient for remote transactions – Cash is only useful for in-person exchanges.
Overall, cash is a good option for smaller, local transactions where you will be meeting the buyer in person. For higher value items, cash may not provide enough security or buyer protection.
Facebook Pay
Facebook Pay is Facebook’s own digital payment system that allows for transactions directly within the Facebook Marketplace platform. Here are some key details on Facebook Pay:
Pros
- Seamless transactions – Buyers can send money quickly without leaving Marketplace.
- Buyer/seller protections – Transactions are monitored for any issues.
- No fees – Facebook does not charge any fees to send or receive money.
Cons
- Limited availability – Facebook Pay is not available in all countries/regions yet.
- Data privacy concerns – Some users may not feel comfortable using Facebook’s payment system.
- No cash handling – Sellers who prefer cash transactions cannot use Facebook Pay.
Facebook Pay provides a convenient digital payment method for Marketplace transactions. However, adoption is still growing since the option is relatively new.
PayPal
PayPal is one of the most widely used digital payment services worldwide. Here are some key upsides and downsides of accepting PayPal payments:
Pros
- Well-known and trusted – Most buyers and sellers already have PayPal accounts.
- Buyer/seller protections – PayPal offers dispute resolution for issues.
- Accepts credit/debit cards – Buyers can pay via cards through their PayPal account.
- Remote transactions – PayPal works for in-person or online purchases.
Cons
- Transaction fees – PayPal charges a fee per transaction that is deducted from the seller’s payout.
- Delayed payouts – It takes 1-3 business days for transactions to clear to your bank account.
- Account limitations – PayPal may limit accounts for new or high-risk sellers.
- No cash handling – Buyers must have a bank account/card linked to PayPal.
PayPal is one of the most flexible options since it works for both in-person and remote transactions. However, the fees and delayed payout schedule may be disadvantages for some sellers.
Venmo
Venmo is a popular peer-to-peer payment app owned by PayPal. Here is an overview of some pros and cons of using Venmo for Marketplace payments:
Pros
- Easy peer-to-peer transfers – The Venmo app makes paying someone quick and straightforward.
- Minimal fees – Venmo only charges a fee if money is instantly transferred to a debit card.
- Trusted platform – Venmo is widely used, especially among younger demographics.
- Buyer/seller protections – Venmo offers purchase protection and dispute resolution.
Cons
- Delayed bank transfers – Standard bank payouts take 1-3 business days to process.
- Require app download – Buyers need the Venmo app installed on a mobile device.
- Credit card fees – Venmo charges a fee for credit card payments between users.
- Requires account – Both parties need Venmo accounts to complete transfers.
For quick, local meetups, Venmo can be a handy way for buyers and sellers to exchange funds. But the app-only system may limit accessibility for some Marketplace users.
Payment Apps Summary
To summarize some of the most popular digital payment apps:
| Payment App | Fees | Buyer/Seller Protections | Linked to Bank Account |
|---|---|---|---|
| Facebook Pay | None | Yes | Required |
| PayPal | Per-transaction fees | Yes | Optional |
| Venmo | On card transfers | Yes | Required |
This comparison shows some of the tradeoffs between no-fee platforms like Facebook Pay versus more widespread services like PayPal that offer strong buyer and seller protections for a small transaction cost.
Payment Card Processing
For sellers that want to accept credit or debit card payments directly, using a mobile card reader is an option. Popular options include Square and PayPal Here card readers. Here are some pros and cons of accepting direct card payments:
Pros
- Seamless card acceptance – Buyers can complete transactions with cards they already have.
- Receive funds quickly – Paid out next business day after transactions.
- More professional – Card readers provide a more official point-of-sale experience.
- seller protections – Services like Square offer protection from fraud/chargebacks.
Cons
- Transaction fees – Card processing services charge a per-transaction fee, usually around 3%.
- Requires hardware – Sellers must purchase a card reader device.
- No cash payments – Card readers only work for debit/credit card transactions.
- Require setup – More involved to establish an account and get reader hardware.
For sellers doing a high volume of transactions, Square or PayPal Here readers may be worth the hardware investment. But for smaller sellers, the extra fees may cut too much into profits.
Checks
Some Marketplace sellers also accept payment by checks, which has both upsides and downsides:
Pros
- No processing fees – Checks let you receive the full payment amount.
- Familiar option – Checks are a traditional and well-understood payment method.
- buyer protections – Checks provide documentation of payments.
- Remote transactions – Checks work for shipping items or remote purchases.
Cons
- Processing delays – Banks take several days to clear check deposits.
- No guarantee of funds – Checks can bounce if account has insufficient funds.
- Cumbersome for large amounts – Filling out check details can be tedious.
- No in-person use – Checks only work for remote transactions.
For higher-value or remote transactions, checks may be a good option since they avoid processing fees. But the delays in clearing checks make this payment method less than ideal for many in-person Marketplace transactions.
What is the Best Payment Method for Most Marketplace Sellers?
With various payment methods to choose from, what is generally the best option for Facebook Marketplace sellers? Here are some key recommendations:
- Accept cash for local, in-person transactions – For meeting up with local buyers, cash is king. Just use common sense precautions for large amounts.
- Use Facebook Pay where available – Facebook’s own payment system allows seamless transactions with no fees.
- Enable PayPal as a backup – In case buyers don’t have cash or don’t want to use Facebook Pay, PayPal is the most universally accepted digital wallet.
- Get a mobile card reader for big-ticket items – If selling anything over $500, using Square or PayPal Here to accept debit/credit cards directly can give buyers assurance.
- Only take checks for remote purchases – Checks work fine when mailing an item, but should be avoided for local, in-person transactions.
Having a range of payment options enables sellers to complete more transactions and appeal to all types of buyers. Prioritizing no-fee methods like cash and Facebook Pay reduces cuts into profits, while still providing digital payment methods for convenience.
Other Tips for Getting Paid on Facebook Marketplace
Here are some other tips for smoothly receiving payments as a Facebook Marketplace seller:
- Negotiate price and payment method upfront – Agreeing to a price and means of payment before meeting up avoids confusion.
- Request payment at the start of a transaction – Politely ask to receive payment before handing over an item to prevent non-payment issues.
- Provide receipts for cash transactions – Give buyers receipts confirming cash payments to document transactions.
- Choose public meeting spots – Meet at safe, public locations like coffee shops to exchange items and payments.
- Bring a friend for safety – Having an extra person with you provides protection when meeting unknown buyers.
- Avoid oversharing payment info – Only communicate sensitive payment details over Messenger as needed to complete the transaction.
- Link digital accounts ahead of time – Make sure payment provider accounts are already connected to banking accounts to enable quick transfers.
Following best practices around receiving payment helps Marketplace sellers get paid efficiently while keeping their account safe and avoiding scams.
The Bottom Line
When selling items through Facebook Marketplace, cash and Facebook Pay tend to be the best payment methods for in-person, local transactions. PayPal and Venmo are more convenient options for remote transactions, while Square or PayPal Here card readers allow easy card acceptance for high-volume sellers. By supporting a range of common payment methods, Marketplace sellers can provide a smooth payment experience for buyers and maximize the number of successful transactions.