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This seems like a credit card/bank problem, it's not unique to paypal.

I was thinking about upgrading my phone and ebaying the old one. After reading this, I'm thinking maybe I'll go the craigslist route, or one of the online trade-in deals.

Does gazelle have this same issue? I'm not sure if Gazelle the company buys the product and sells it, or if they just connect me with a buyer like ebay does.

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I just looked up an iPhone 4s 32gb unlocked. Gazelle offers about $215.

Swappa.com had six for sale, with asking prices averaging around $450 (there was an outlier at $360).

A quick look at Craigslist Boston shows recent asking prices of $380 to $550.

Of course, I don't have data on what prices the Swappa and Craigslist sellers are actually getting.

I think, if I were really lazy, I'd sell to Gazelle. Otherwise, I would use Craigslist, cash only, meet in a public place.

You could try Swappa (http://swappa.com/) I haven't used them personally, but a friend did and had positive feedback.

Swappa's great, but it still goes through Paypal. Probably a better crowd on there than EBay though and they allow negative feedback.

Another vote for Swappa. I bought a phone using the service. As pdubs said, it still goes through PayPal but the site employees keep an eye on the transactions and there are reviews and negative feedback.

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