Ebay - Pay Pal conondrum

By joining our community you will have the ability to post topics and access other forums reserved for members. Registration is quick, simple and absolutely free. Join our community today by clicking here.

Posted: Thu Apr 10, 2008 7:41 am

This press report today:

Quote:

New security changes to auction website eBay Australia will affect the way buyers purchase goods, and funnel more funds into its coffers.

Under the changes, direct deposits, money orders and personal cheques will no longer be listed as a payment option after June 17.

As a result, buyers will have only two options with which to pay: either cash-on-delivery, or via the online commerce website PayPal, which is owned by eBay.

We can expect to see a marked increase in phishing emails, however it will be difficult for the overpayment cheque brigade to ply their trade on Ebay. I would have thought this is a negative step by Ebay, and many large traders will abandon ship in favour of their own websites.
I wouldn't buy COD from many people, and a lot of people would not use COD. So Pay Pal becomes a monopoly.

Posted: Thu Apr 10, 2008 8:30 am

I got a similar email (I'm in the UK) today. Personally, I think eBay/PayPal is getting too big and greedy for its boots and I hope people vote with their feet. I tend to sell relatively small value items by cheque payment. I don't offer PP, although I do have a PP account.

Like you say watch out for an avalanche of phishing trips into your in boxes.

Posted: Thu Apr 10, 2008 10:35 am

I won't be using ebay again then.
I pay by Credit Card if I buy online, because it protects me from fraud. Paypal protects me from sweet fuck-all.
A couple of years ago, I lost �300 quid to some asshole. His business was going bankrupt and he was advertising stock he didn't have. I got 80 poxy quid back from Paypal. Luckily, I had the guy's name and address, so a few phone-calls threatening to break his legs meant I eventually got everything back.
Ebay is a business and like any other business you should be able to protect yourself and get reimbursed if you get ripped off. By closing safer avenues of payment, you've got no chance if you run across a fraudster.

As soon as they bring in this rule change in the UK, I'll be closing my account with them. Evil or Very Mad

Posted: Thu Apr 10, 2008 11:15 am

Well, this coming on the heels of ebay making it so that sellers can no longer leave feedback for buyers...sounds like the beginning of the end to me.

When everything works fine with ebay/paypal, it's great. But I had one really lousy transaction there with a seller...I'd purchased a treadmill, and when it arrived, it was broken. He said that by opening the box it was now a "used" item, and as such I couldn't return it.

Yeah, right.

I got Trading Standards involved, and eventually got my money back, but they told me right up front that the whole thing would have been much better if I'd paid with a credit card, and advised me to do so in the future.

Posted: Thu Apr 10, 2008 1:23 pm

One of the big Australian Ebay traders has this on his site

Quote:

We do NOT accept PAYPAL and ANY Credit Card Payment for ALL eBay Sales

Ebay may lose a few of their sellers

Posted: Thu Apr 10, 2008 4:47 pm

FeeBay sucked enough before this little announcement. (I'm guessing that the "PayPal or COD only" thing will apply here in the States as well? Surely.)

I closed my account with 'em a long time ago. There are many easier, safer ways to get good deals online.

Posted: Thu Apr 10, 2008 7:37 pm

Quote:

... direct deposits, money orders and personal cheques will no longer be listed as a payment option ...

I'm not sure that's really important.

I think there's a difference between the options that Ebay offers in it's mask when you start an auction and reality. As far as I know you can write anything you want in the item description text. The payment method is decided on by the seller/buyer, not by Ebay.

If the seller writes 'We accept credit cards only" in the item description and skips the mask options, then that's what counts for that auction. I don't think Ebay can do anything about that short of closing the auction. Buyers buy from the sellers, not from Ebay. Ebay is only the platform.

If a buyer asks a seller if he can pay with postage stamps, sea shells, or a sack of potatoes and the seller agrees, Ebay can't do anything at all about it.

Posted: Thu Apr 10, 2008 7:59 pm

Blatant money making grab that will do nothing to improve "security". Australia is a small enough market to make this their boardroom experiment - with a sign of things to come elsewhere. Thumbs down

But I suspect it will come back to bite them in the butt. The eBay chat rooms went ballistic last night (Australian time). I've counted well over 200 threads in the last day, so individual postings on this topic easily in the thousands (not counting the ones taken down by forum admins).

A lot of very angry and disillusioned people out there and they are looking for alternatives. I'd hate to be working for them right now. If you were a forum admin for eBay you'll be mopping up the next few days, I think.

Posted: Thu Apr 10, 2008 8:10 pm

kleindoofy wrote:

If the seller writes 'We accept credit cards only" in the item description and skips the mask options, then that's what counts for that auction. I don't think Ebay can do anything about that short of closing the auction.

Whilst technically feasible, kleindoofy, that does become a "listing violation" in eBay's mind, and as you suggest they will close that auction - and suspend the seller for multiple offences.

eBay are also getting more sophisticated in policing this - for example keyword scanning prior to listing. Try putting the words "Western Union" or "Moneygram" into your description. I tried that once to stipulate: ".... are NOT acceptable forms of payment" but the listing rejected.

Posted: Thu Apr 10, 2008 10:23 pm

viereinsneun wrote:

... that does become a "listing violation" in eBay's mind ...

Ahh. That must be new. At least here in Germany they (used to?) have a payment option "see item description."

I sold lots of stuff in 2005-2006 but haven't for a while, so things may have changed.

[edit:] I just checked: In Germany you can still click on "see item description" ("Siehe Artikelbeschreibung") in the selling mask as the payment method.

Posted: Fri Apr 11, 2008 12:22 am

I think KD has opened a new can of worms. Previously Ebay stated they were only a platform, and took no responsibility as an auctioneer. Their token assistance to scammed buyers was only due to their goodwill. It maxed at $400 AU as I recall.
Now their new mandatory payment method must do something to classify them as the auctioneer. This maybe the reason claim barriers are lifted.
What is to stop a buyer making a direct debit arrangement with a reputable seller, and the seller telling Ebay there was no sale, and thus avoiding seller fees?
COD is not an option for buyers. You pay the PO for the box before you collect what maybe a box of rubbish. I cannot imagine the PO allowing everyone to open COD parcels on their counters, and thus become implicated in any claims. I know many people who have been caught on COD.

Posted: Wed Apr 16, 2008 2:39 am

Further developments in this ongoing saga can be read here

http://www.smh.com.au/news/web/ebay-in-paypal-probe/2008/04/16/1208025245331.html

Summarised, it reads,

ACCC probe of eBay's PayPal forcing

The competition watchdog is examining whether eBay Australia breached trade practice laws by forcing its users on to PayPal.

PayPal performs payment processing for online sellers, allowing them to accept credit card payments and money transfers without having their own merchant credit card accounts.

The policy, to come into effect on June 17, will mean all items must be paid for using PayPal, which eBay owns, or cash on delivery/pick-up. Direct bank deposits, cheques and money orders will all be barred.

The move by the auction site is presently limited to Australia only and will hit sellers with extra fees because PayPal charges them a fee of between 1.1 and 2.4 per cent to accept payments - usually using credit cards - via the service.