How do you pay? Why?

As mostly a buyer at this point I won't do a deal if I have to pick up the 3% paypal. Both parties are getting some benefit. The seller either needs to pick up the paypal fee entirely (as cost of sales) or at most split it with me. If I see " . . . add 3% for PayPal" I move on.

I've bought and sold many items over the web & have no issues with a MO, bank check or paypal...& I pick up the paypal fees on a sale.

I agree with the Paypal preference. I too have been burned twice now with members who's feedback seems genuine. Alot of times if there is a problem with the item, not as advertised, Paypal will atleast stand by you through the process of determining fault, and if you use Paypal with cc, you can always deny the payment until things are resolved.
Seems like a $1000 item would be around $30, atleast figure it in the asking price instead of the pathetic "Paypal add 3%" caveat.

My post office won't cash in USPS money orders because they never have enough money on hand to do it. Then my bank holds them for 5 business days... So USPS money orders are no good for me anymore.

As a seller I like PayPal for smaller items and USPS money order or cashier's check for pricier items (say $500 or more). My bank teller told me that even though funds would be available to me immediately from my deposit of a money order or cashier's check, there was the possibility that a few weeks down the road the check or money order could turn out to be a fake and then I'd be on the hook. I asked him about the cashier's check I was about to deposit. He took one look at the issuing check service and said it was a reliable one and this check was very likely good. I deposited it and had no problems. Again, buyer's feedback and communication with you as seller is critical.
As a buyer, I like to use PayPal too, it's far more convenient and I can do it immediately rather than wait in line at the bank or PO or both before work. If the fee is not covered by the seller, or amounts to more than about $15 though, I don't use PayPal. Paying a $15 fee is about my limit for convenience. Sometimes, sellers will pay or split the fee with you though, for mutual convenience. The service really does benefit both buyers and sellers even though PayPal funds do not clear into your bank account for 4-5 days. You can just wait to ship until the funds are in your bank account. But if the buyer has good feedback I go ahead and ship as soon as the payment has been made, esp if the purchase is for a relatively small amount.
I have been lucky on both ends, as buyer and seller, following these practices for over 6 yrs of trading on Audiogon, Head-Fi, and eBay. I am the MOST cautious dealing with eBay of course. The other two sites are for extreme hobbyists and I've never yet been burned by one of those lunatics (self included).

I usually pay with a tellers check from my credit union, unless another form of payment is requested.

As for receiving funds, if it’s a USPS MO, I just go to the PO & cash it there. If cashing a bank draft, MO, personal check, etc, I go to that bank to cash it, but if no branches are in my area, I call the bank to make sure funds are available before I deposit in my account. I have had zero problems receiving payments.

I don’t like the idea of paypal, mostly because they are unregulated and can do what they want with your money.

Also, I much as I dislike PayPal fees, I still prefer PalPal for the reasons stated above by Swampwalker. When I sell something, I don't put the " . . . add 3% for PayPal" in my ads. In fact, I'll even go as far as to state, "No fee for PayPal". To me, it's not worth 3% to mess around waiting for a payment that never shows up. Just cover the 3% in your selling price and don't put it on the buyer.

Yes most all banks post funds from cashier checks and money orders the day you make the deposit, especially if your account maintains an average balance greater than the amount of the check or money order. The reason many people wait for a period of time prior to shipping the goods, is in case the cashiers check or money order is counterfeit.

At times, dishonest people have been known to purchase a real money order with a real serial-number for low amount, and then carefully bleach out the actual amount and reprint the new fraudulent amount. From what I understand, done correctly, it is difficult to tell if the money order is is real or fake. In this case, the bank takes the money order in, posts the amount to your account, and then when the fake money order is actually reconciled by the issuing company, a charge-back is sent to the bank which is then charged-back to your account. Ouch!

Everyone should be aware of one issue with cashiers checks and non-USPS money orders. There have been instances of counterfeits used to pay for goods here on Audiogon. If it turns out that you as a seller get one, your bank will look to you to cover the balance, and expect you to go back to the buyer to recover your loss (cold day in ....). Your bank manager may make the funds available to you immediately at their discretion, they may or may not put a hold on other funds in your account, but ultimately, if the buyers bank or other issuing entity refuses to honor a money order or cashiers check, you will be on the hook for the $$. There is another also one other issue here. Unless I am mistaken, there are federal laws covering clearance times for personal checks and they max out in days, not weeks. So if the seller says 2 weeks to clear, either they are misinformed, their bank is hosing them to take advantage of the float, or they don't want to take the risk of being stuck for a $30 bank charge if the check does not clear (and that is probably a legitimate concern when dealing with a low feedback member).

AS far as paying the 3% vig to paypal, I hate to do it, and usually won't on major purchases. If the seller's price is fair, I will offer to pay full price and let them decide if THEY want the funds quickly enough as to cover the fee themselves.

One other point (I promise). There IS one advantage to paypal for a seller besides quick access to the funds; it cuts down on failed deals due to " (potential) buyer's remorse, where financial or other realities set in before they can get to the bank and p.o. I've had my share of "I changed my mind" emails after agreeing to a price and other terms. That is the one advantage of the Audiogon transactor.

My bank now holds everything for 5 business days. They have had several issues with fraud.... MOs or CCs are no better than personal checks anymore.

I prefer paypal since there is no hold and you don't need a pile of MOs to send lots of money.

Arthur

I only use Paypal. Been burned too many times by the "check is in the mail". With Paypal, the transaction is complete and well worth the surcharge.

if someone takes paypal without the 3% fee (inexpensive items) i jump on that

otherwise I send a personal check priority mail
quick enough, efficient, easy to keep track of, and I don't have to track down a money order somewhere

Don't confuse 'posting' time to your account vs actual clearing. Hence CCs and MOs post immediately, but you may find out a couple weeks later that it is counterfeit, leaving you holding the bag. It is, however, not typical to see counterfeit items like these, so in that regard it is 'safer'. I always ship upon receipt of a CC, but I am still taking a chance, although a small risk im my opinion.