What is the recommended way of conducting a transaction on Craig’s List? For example, I am selling some tickets to someone. How should I collect the money and when should I mail the item?
Best choice is always to meet in person, and use cash. Of course, that’s not without risks, but it’s the safest choice. Personal checks can bounce (IIRC, it’s even possible after your bank says they “clear”). Cashier’s checks and money orders can be forged, so that it seems like the deposit goes through, but the money gets pulled days later when your bank finds out. Other sorts of wire transfers are even sketchier, and are a big red flag.
If someone wants you to mail something? That’s a risk taken by the buyer, and Not Your Problem. Also, you have no reason to mail anything until you have a payment. Still, you should beware, since the vast majority of scams are done from a distance. Make sure you actually have the money, in a valid form of payment.
Perhaps a service like paypal would be safe enough for your purposes?
I tell you what… I will send you a cashier’s check for $1000 and you can deduct the price of the tickets plus $50 for your trouble if you can just send the remainder to a friend of mine via Western Union. You can send me the tickets any time (or, as long as you do the first part, you can just keep the tickets). 
ETA: I will second lazybratsche’s comments on cash or paypal as being the safest methods.
Meet them somewhere very public and accept cash only. Carry a knife.
I bought baseball tickets that way. (Met in the parking lot of Walgreen’s and paid cash.)
I can’t meet in person as it is an out of town transaction. I guess my next best option is paypal then.
I would strongly discourage selling anything to someone out of town via craiglist. That’s just a bad idea. I don’t have a problem going to someone’s home, or vice versa like some might - but I wouldn’t mail shit.
Paypal is bad because they can simply dispute the PP charge and if they used a credit card you lost.
A wire transfer has no risks to the seller, but it’s totally risky to the buyer, so as a buyer I wouldn’t use it.
But if you can get a buyer to use it go with Western Union or Money Gram. I mean once you pick up the money you, the seller get cash and there is nothing the buyer can do. Of course it’s totally risky to the buyer.
There are escrow services you can use but it’s unlikely to be worth it unless the tickets are going to sell for a huge dollar amount
What I would do is open a PP account brand new. Don’t use an existing one.
Then I would sell the tickets through paypal, once the money is in paypal and it clears so you can get at it, immediately take the money out, and then send the tickets. Then immediately notify your bank not to allow anyone to make any electronic transmission to that account. You’re probably better off closing the bank account and reopening it with a new account number
If the PP charge is disputed, PP cannot get anything from you and that PP account will just sit idle with a negative balance, forever or till PP cleans it accounts up, which can be years and years later. I still have a $1.75 balance on my PP account from 2001 which I never cleared out.
If you use an existing PP account and the charge is disputed you’ll have it frozen till PP is satisfied.
Seconding the general sentiment here. Do NOT sell anything over Craigslist unless you meet in person. See the scams section.
Lacking a reputation system a la eBay or Amazon, there is next to nothing to prevent fraud.
Don’t get me wrong, I’ve sold and purchased lots on Craigslist, but always in person and always in public places and always for cash – even for multi-hundred dollar transactions. Would never do otherwise.