Are There Any Drawbacks of Using Cash When Buying/Sellling on Gumtree or Similar Websites?

martians on 03/10/2021 - 01:01
Last edited 03/10/2021 - 21:00 by 2 other users

Hi,

I have seen people getting scammed multiple times when selling an item on gumtree. The buyer probably sends the transfer receipt after picking up the item. But I think they dispute the transaction with the bank and get their money back. While the seller losses money and items as well.

Well, I am wondering are there any drawbacks for using cash only e.g. no tax deduction etc.

Also, my main question is would you use a service that provides a safe option for sellers and keeps the money from buyers so they cant cheat and vice versa?

Service charges $2 per transaction irrespective of the transaction amount.

Thanks.

Note:
The business is in compliance with ASIC and other regulatory authorities in Australia.

Poll Options expired

  • 50
    No
  • 6
    I am happy with cash only
  • 1
    2$ is too much :P
  • 1
    It sounds interesting
  • 0
    Yes
Financial

Comments

  • Hybroid on 03/10/2021 - 03:02
    +7

    Gumtree = cash on collection only. You don't post items, you don't get paid via any online mechanism. Cash on collection.

    Only drawback is if you get fake notes. Highly unlikely with the plastic notes nowadays.

    No, not interested in dealing with a third party middleman for payments. Cash on collection.

  • KSMLJ on 03/10/2021 - 03:21
    +4

    Escrow services already exist.

  • AustriaBargain on 03/10/2021 - 03:39
    -3

    You can use PayPal instead, but you pay a fee to accept the money in a safe way. Instant bank transfer is also possible these days, but what if they start the transfer and it isn't instant, what if there is a weird delay of a few hours, are they going to hang out at your house for a few hours waiting?

    • nxllson on 03/10/2021 - 09:24
      +2

      Definitely not protected via PayPal if you're going via Goods & Services. You can't prove a Gumtree transaction unless, miraculously, the buyer & seller have both agreed for it to be shipped with a tracking number.

  • Melb69 on 03/10/2021 - 03:47
    +1

    Cash is king on GT. Cash on pickup

  • Hithere on 03/10/2021 - 08:14
    +4

    Buyer "I'll take it, here's your cash".

    Seller "Thank you, goodbye".

    End of transaction.

  • thatonethere on 03/10/2021 - 09:13
    +3

    How would the service know if goods had really changed hands?

    • Quantumcat on 03/10/2021 - 13:28
      +1

      Yes exactly, the buyer would insist they got nothing and want a refund and the seller would insist it was handed over - nightmare for the third party

  • Ryanek on 03/10/2021 - 09:15

    Drawback - not practical for large sums like a car purchase. In these cases, a bank cheque is fine.

  • mskeggs on 03/10/2021 - 09:24
    +4

    Why would paying cash have anything to do with a tax deduction?

    The service you are describing is called escrow.

  • randomusername2017 on 03/10/2021 - 11:23

    Might pay the covid tax when handling cash ….

    PayPal is already integrated with gumtree, can't see how your business idea will gain much traction in a marketplace that promotes itself as a cash economy.

  • Hithere on 03/10/2021 - 15:04
    +1

    Last Seen 2 hours 55 min ago

    Looks like OP didn't get the answers they wanted.

  • martians on 03/10/2021 - 17:11

    Ok thanks everyone for the feedback. Seems like not a good business idea to pursue. Thank you.

  • tallkid123 on 03/10/2021 - 19:42

    I'm gonna admit, I've paid people online through Gumtree but only for video games less than $50. I collect so when I see a certain game in an ad and the seller is interstate and offers post, I'll usually bite if they've gotten consistent positive feedback.

    But obviously for anything like a phone or computer, it's face to face or I use another platform entirely.

  • elgrande on 03/10/2021 - 21:22

    Downside of selling with cash on Gumtree = less interesting forum posts

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