RE: Walmart idea
 

Wal-mart gift cards sell for almost full value on eBay. $500 cards sell for about $495. Sometimes they even sell for more than $500 because Sam's members can use them for a gas discount which makes them more valuable.

So there's no risk involved here. Either wal-mart will sell you a money order from the card or you can sell the card on eBay. You'll only be out about $2 for the listing fee.

Don't forget ebay's final-value fees ....
 

Ebay's final-value fees for a $500 sale is almost $15:

$1.30 for the first $25, 2.75% for the rest.

That comes out to about $0.03/mile -- not a good deal IMHO. :(

I attempted to use a Walmart gift card to purchase a money order but it did not work. The manager even got involved and indicated that the only method of payemnt for money orders are cash or debit cards.

Not to mention PayPal fees of close to another 3%. Granted, sellers don't HAVE to use PayPal and can choose to require payment via other means - cashiers check, money order, personal check - that don't take another commission out of their pocket, however more and more savvy buyers are steering clear of auctions that don't accept PayPal as PayPal payments (PayPal payments funded via a credit card give the buyer extra protection should the seller stiff them as they can dispute the transaction with their credit card company). Personally I wouldn't touch a $500 auction that didn't accept PayPal.

Now we're close to 6 cents per mile...

Actually, Paypal only protects *themselves*
 

Go back and read your terms & conditions on Paypal more carefully. You explicitly agree NOT to submit a chargeback, and if you do you forfeit your account (and they can go into your checking account for the money, which isn't protected).

More info at http://www.paypalsucks.com/

I have filed chargebacks with larger Paypal transacions (laptops) transactions twice in my Paypal history - without them going after me for the money.

I know they will go after a seller's checking account if a charge back is filed against them....but my experience tells me they won't go after a buyer's checking account for filing a chargeback.

In my opinion - Paypalsucks.com is not a reliable source of information. Paypal has done things I don't agree with...but I don't think they are quick as bad as that website portrays.

Is there a problem returning GC if they are denied for MO or cash? I thought as long as you have a receipt you are safe. So there is no need to use ebay for returning your money. I know you won't get any miles but refunding is a back up in case they refuse

Yes, this is true. I was only referring to ways to keep the miles.

Worse comes to worse, just return it........but I should note that I just got home from Walmart with a $1000 money order from a gift card....no problems!