How do you actually buy and sell credits?  Also, I just noticed that someone mentioned something about PayPal charging them a fee.  What are the costs other than the actual cost of buying the credits?  Does it cost the buyer or seller or both or what?  I need to know all of the details so I can consider my options.  Thanks for your help...

I'd suggest you ask this over in the Book Bazaar where most of the selling is done.

I've bought credits using gift certificates and money orders but have no knowledge of paypal.

Paypal charges a fee to receive money through them depending on what kind of account you have. I believe for a personal account you can receive payments a certain # of times before they charge you a fee.  I don't kown exactly how many.  Then there may be charges if they pay with a credit card.

The last 2 times I sold credits I got paid with an Amazon gift cards which I of course used to buy more books. 

As a buyer there is no fee to use paypal.  The seller has a small percentage of what you send to them taken out.  In terms of the process the general protocol is that the money is sent first and then the credits are transferred.

If you log into your paypal account, it's explained under the 'Send Money' tab. But bascially, in order to avoid the recipient being charged a fee, you need to designate it as a personal transfer (for example, a gift), rather than a purchase, and you must pay with a paypal balance or bank transfer.

Edited to add payment method information. 

I'm also curious about this. What recourse would we have if a credit purchase went bad?

I'm also curious about this. What recourse would we have if a credit purchase went bad?

You can complain to PayPal, but they rarely help.  That's why you should always pay through PayPal via a credit card attached to your account.  Your credit card company is going to be a lot more cooperative recovering your money from a fraudulent deal than PayPal will be.  I once bought a piece of software on E-Bay that turned out to be pirated.  PayPal would not get involved because "I had received my item".  They apprently didn't care that it was a pirated copy.  I got my money refunded through my credit card company.

Good to know.  Thanks.  The only reason I didn't ask this in the Bazaar is that it would get buried in the back pages, and I'd never find my thread again!  lol.  I know, I have issues...