  We present a new method for differentiating between planetary transits and
eclipsing binaries based on the presence of the ellipsoidal light variations.
These variations can be used to detect stellar secondaries with masses ~0.2
M_sun orbiting sun-like stars at a photometric accuracy level which has already
been achieved in transit surveys. By removing candidates exhibiting this effect
it is possible to greatly reduce the number of objects requiring spectroscopic
follow up with large telescopes. Unlike the usual candidate selection method,
which are primarily based on the estimated radius of the orbiting object, this
technique is not biased against bona-fide planets and brown dwarfs with large
radii, because the amplitude of the effect depends on the transiting object's
mass and orbital distance. In many binary systems, where a candidate planetary
transit is actually due to the partial eclipse of two normal stars, the
presence of flux variations due to the gravity darkening effect will show the
true nature of these systems. We show that many of the recent OGLE-III
photometric transit candidates exhibit the presence of significant variations
in their light curves and are likely to be due to stellar secondaries. We find
that the light curves of white dwarf transits will generally not mimic those of
small planets because of significant gravitationally induced flux variations.
We discuss the relative merits of methods used to detect transit candidates
which are due to stellar blends rather than planets. We outline how photometric
observations taken in two bands can be used to detect the presence of stellar
blends.
