Is it safe to accept money in the mail?

Question

I currently run a website that sells site currency users can purchase with PayPal. The currency they purchase is for on-site items and not physical goods. However, I've had some users request a way to obtain this currency using non-PayPal, non-bank account methods. One thing users have requested is the ability to mail-in money as a substitute for PayPal.

Many of the users on the website are younger and may not have a bank account, so I am not sure what to do. Is it safe to take just cash in the mail? Should I force the users to at least send me a money order or check? I doubt any user will mail more than $20 USD at a time, but mailing money is a bad idea.

So, my question is, is it safe to accept money in the mail?

score 5 · Accepted Answer · answered Jul 18 '11 at 22:37

On your end of the deal, the biggest risk is probably counterfeiting. That said, I'd think that most of the downside would be for the buyer since they would have no way to prove that they paid you.

Perhaps a better alternative is to send the items COD (Collect On Delivery aka Cash on Delivery). The USPS and some other carriers offer this service, which can be an effective way to remotely negotiate a cash sale.

I double checked the USPS site and they do accept cash for COD deliveries:

Recipient may pay by cash or check (or money order) made out to sender. (Sender may not specify payment method.)

You might want to double check this if you go with USPS or FedX.

score 2 · Answer 2 · answered Jul 18 '11 at 22:47

2

Another option is to set up an accoutn with Western Union Bill Payment Solutions, where your customer could go to one of their locations and pay in cash and then the cash is transferred to your account.

See "Walk in Cash Payments" on their site.

answered Jul 18 '11 at 22:47

JohnFx

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score 2 · Answer 3 · answered Jul 19 '11 at 01:32

The US Postal Service to my recollection recommends only mailing cash or items with cash-like characteristics using Registered Mail service. Registered mail is expensive and a pain in the butt for everyone, as it requires an audit trail for each individual who touches the mailing.

If you're doing a lot of business and word gets out that you're accepting cash payments via the mail, you'll probably attract unwanted attention from the tax authorities as well. It's fairly unusual.

Is it safe to accept money in the mail?

3 Answers3