Ebay proposes that Paypal use be required

Jigger

Jigger

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EBay's PayPal rule in Australia draws fire


By AMANDA FEHD, Associated Press WriterSat May 10, 6:49 AM ET

EBay Inc. is exploring whether to require customers to use its online payment service PayPal, a move that has angered users and prompted antitrust scrutiny in Australia, where a PayPal-only rule takes effect next month.

It's unclear whether eBay will institute a similar policy in the United States and other countries. However, the online auction company often tries big changes in smaller markets before expanding them worldwide, and says it is open to that in this case.

"We are going to take learnings from it and apply them accordingly," said eBay spokesman Usher Lieberman.

EBay says it wants to reduce disputes and restore trust in its marketplace with the PayPal-only plan. Because eBay and PayPal can share information on each transaction, eBay says use of PayPal allows it to stop fraud more efficiently than outside payment services. Pressing that safety argument in a heated discussion with Australian users, an eBay executive compared the new rule to banning the sale of heroin on street corners.

But critics lament that PayPal is costlier than other payment options, and they suspect eBay is just interested in increasing PayPal's revenue. Australian banks say the plan will eliminate competition for the sake of exaggerated benefits.

"Competition will be restricted, innovation and development will be constrained, new entry will be discouraged and PayPal will be able to increase fees and charges to eBay users," the Australian Bankers Association said in a filing with regulators Thursday.

Because eBay sellers are commonly independent merchants who don't accept credit cards, PayPal acts as a go-between. Buyers use their credit cards and bank account information to make payments, and PayPal relays the funds to sellers' PayPal accounts, charging them 30 cents plus a commission ? up to 4.4 percent in Australia. The second-most common method of payment on eBay Australia, bank transfers, cost 20 cents each.

Australia's bankers group says PayPal is not as immune to fraud as eBay claims. While PayPal does keep bank and credit card account information secret between trading partners, the bankers group decried that it does not verify identity as banks do.
 
There is no guarantee that fraud will be stopped by using paypal when buying on ebay. I used paypal after winning an auction on ebay a while ago and never received the item or a refund. Paypal would not help me in anyway and ebay's only action was to drop the seller. Use a credit card when using paypal. That the only way you are protected.
 
I think some monopoly laws would be violated here...probably there to...sure is interesting though how bold ebay is getting...
 
eBay used to be a decent place to buy and sell.. I mainly sold on there for years until last year when their fees started to rise. This was just after they had to pay back the money they stole from rounding up pennies.

It does appear they are greedy.. Which I can't seem to understand as they are making so much money as it is. and they do make a ton..

But to make it where you can only pay and collect through paypal is a joke. Paypal fees are not cheap when you get in the hundreds on accepting a payment.

and adding that cost on top of the listing cost and final value fee cost is just too much to shell out on a regular basis.

But whats new.. The cost of everything is on a rise and the world is in the toilet right now.
 
Jigger said:
EBay's PayPal rule in Australia draws fire


By AMANDA FEHD, Associated Press WriterSat May 10, 6:49 AM ET

EBay Inc. is exploring whether to require customers to use its online payment service PayPal, a move that has angered users and prompted antitrust scrutiny in Australia, where a PayPal-only rule takes effect next month.

It's unclear whether eBay will institute a similar policy in the United States and other countries. However, the online auction company often tries big changes in smaller markets before expanding them worldwide, and says it is open to that in this case.

"We are going to take learnings from it and apply them accordingly," said eBay spokesman Usher Lieberman.

EBay says it wants to reduce disputes and restore trust in its marketplace with the PayPal-only plan. Because eBay and PayPal can share information on each transaction, eBay says use of PayPal allows it to stop fraud more efficiently than outside payment services. Pressing that safety argument in a heated discussion with Australian users, an eBay executive compared the new rule to banning the sale of heroin on street corners.

But critics lament that PayPal is costlier than other payment options, and they suspect eBay is just interested in increasing PayPal's revenue. Australian banks say the plan will eliminate competition for the sake of exaggerated benefits.

"Competition will be restricted, innovation and development will be constrained, new entry will be discouraged and PayPal will be able to increase fees and charges to eBay users," the Australian Bankers Association said in a filing with regulators Thursday.

Because eBay sellers are commonly independent merchants who don't accept credit cards, PayPal acts as a go-between. Buyers use their credit cards and bank account information to make payments, and PayPal relays the funds to sellers' PayPal accounts, charging them 30 cents plus a commission ? up to 4.4 percent in Australia. The second-most common method of payment on eBay Australia, bank transfers, cost 20 cents each.

Australia's bankers group says PayPal is not as immune to fraud as eBay claims. While PayPal does keep bank and credit card account information secret between trading partners, the bankers group decried that it does not verify identity as banks do.
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It's just another way for eBay to rip-off sellers by tying it's two companies together and forcing sellers to give it another 3%. Ebay has got increasing more hostile to its selling customers in the past couple of years. I try and avoid eBay for selling at all costs. I sure hope someone figures out a way to put eBay out of business. The greed factor is at the forefront of everything the company does.
 
If ebay forces this policy in the USA, they may run in to anti-trust problems but I doubt it. Very possibly mandating paypal here could upset enough ebayers to drive away business and offset the extra profit in Paypal transactions. Might become a net loss for them.
 
Jigger said:
If ebay forces this policy in the USA, they may run in to anti-trust problems but I doubt it. Very possibly mandating paypal here could upset enough ebayers to drive away business and offset the extra profit in Paypal transactions. Might become a net loss for them.
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Ebay is currently enforcing this policy in the U.S. with sellers with 100 or less feedbacks. I know because I have less than 100 eBay feedbacks and it will not let me list cues unless I agree to accept PayPal. I e-mailed eBay and told them I was done listing cues on its site as long as this policy is enforced against me.
 
Quality Cues said:
Ebay is currently enforcing this policy in the U.S. with sellers with 100 or less feedbacks. I know because I have less than 100 eBay feedbacks and it will not let me list cues unless I agree to accept PayPal. I e-mailed eBay and told them I was done listing cues on its site as long as this policy is enforced against me.
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That doesn't sound quite the same though. They wanted to make you accept PayPal as one of the payment options. The buyers would still have the option of sending you a money order if they wanted. Still a BS policy though.

In Australia (if I'm reading things right) Paypal will be your only option to pay. No other forms of payment will be allowed.
 
Ebay

I did not know until recently that ebay owned paypal ... I know now that they offer the seller the option to only accept bids from bidders that have paypal accounts. I would guess that this is part of thier plan to phase this in as quietly as possible. Sneaky, sneaky, sneaky I guess they want it all is'nt there laws against such a monopoly???

I guess what is scary is paypal can go into your bank account and take money out as it stands now . Not just what you authorize but if someone files a dispute against you and wins they can go in and take that money without asking you . I read this in the main forum where it happened to a few AZ'ers that had a thread about this...

I'm also reminded of the company was it Enron that went in and wiped out all of those peoples 401ks and you saw the lady on tv crying cause she was about ready to retire and lost all of her retirement and it was going to be tied up in courts for years. (maybe I watch to much tv while on the computer here on AZ) Maybe I'm also reaching but hypothetically speaking if ebay and paypal ever got in a tight somehow what would keep them from going in and wiping out several large bank accounts. It would probably never happen but the opportuniity is there and money makes people do funny things sometimes. You read about big companies stealing money all the time... Delta going broke but paying thier CEO's millions in bonus's ... Gas companies gouging us while the goverment stands by and accepts it .. It is possible if something like this happened it would take years to settle .... It might not even be the company but one employee that hatches a get rich scheme and tries to pull it off a modern day Jessie James... I don't work for ebay or a large company that has control of your money and is trying to gain a monopoly just to put y'all at ease...lol...

I hope this does not go through here in the U.S.A. but if it does I will probably not be a ebay customer or paypal either... I don't even do direct deposit because it gives my employer access to my bank account ... If he over pays me he can go in and take the money out ... What if the company fails and has me on tv crying about my retirement ... Well that would never happen I would probably be on there crying cause I went crazy and could not control what I did knowing that the US goverment would be very slow in doing anything if they did anything at all ...

Wow I sound like I'm freaking paranoid ...lol...
 
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Paypal

WalkerInTN said:
That doesn't sound quite the same though. They wanted to make you accept PayPal as one of the payment options. The buyers would still have the option of sending you a money order if they wanted. Still a BS policy though.

In Australia (if I'm reading things right) Paypal will be your only option to pay. No other forms of payment will be allowed.
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Yes but this is just a step towards making the U.S.A. do what they are doing in the land down under. They are being smart about it and not trying to push it on us all at once. I have close to 400 positive feedbacks on ebay I have not bought much from ebay in the last year and I went to bid on a cue that a cue maker that posts here had for sale ... A box came up saying I could not bid on this item cause the seller only accepted bids that had thier ebay and paypal accounts linked together and only accepted paypal.... My first thought was wow that limits the amount of bids he will recieve on his product ... Needless to say when I checked on the cue after the auction the cue only sold for 51.00 and it was worth far more then that ... Can't prove it but I noticed that the winning bid was from the same city that the seller lived in I imagine he had to go in and bid on the cue to keep it from being sold at a huge loss...
 
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