eBay Australia Makes PayPal Mandatory

LouisCamp · April 9, 2008 9:40PM

"Australian press are reporting that eBay is using Australia as a guinea pig to trial a new policy where all other modes of payment are barred except for PayPal. If successful, eBay will roll it out to other markets."

http://www.australianit.news.com.au/story/0,24897,23515926-15306,00.html

jsf · April 9, 2008 9:45PM

forget that

sonoranmonsoon · April 9, 2008 9:46PM

That is just awful! I hope it is a big flop and does not happen here. Since when is PayPal the only accepted legal tender? I am no expert, but it sounds almost illegal in some way.

PerryHall · April 9, 2008 9:48PM

This will hurt eBay if they try to force people to use paypal. Is it time for yahoo or google to come up with an auction venue to give eBay some competition?

PerryHall · April 9, 2008 9:50PM

<< That is just awful! I hope it is a big flop and does not happen here. Since when is PayPal the only accepted legal tender? I am no expert, but it sounds almost illegal in some way. >>

They will do it under the guise of protecting the sellers and buyers from fraudulent transactions.

ebaytrader · April 9, 2008 10:34PM

<< This will hurt eBay if they try to force people to use paypal. Is it time for yahoo or google to come up with an auction venue to give eBay some competition? >>

I dunno why you think it has to be an internet heavyweight. Yahoo did the math and figured they'd make more from pure advertising. I'd bet Google has peeked at those numbers and shaken their heads too. A good plan is a good plan. It doesn't take millions of $ to do it.

<< They will do it under the guise of protecting the sellers and buyers from fraudulent transactions. >>

They're oblivious to paypalsucks.com

291fifth · April 9, 2008 10:34PM

Where is the competition? There is still no serious competitor for eBay in sight.

messydesk · April 9, 2008 10:53PM

That should pretty much end sales of items of value higher than the seller protection limit.

I wonder if these actions will provoke EU eurocrats to start harassing eBay. Something about only being able iTunes in an iStore in iFrance and having to pay only with iMoney or some other iCrap comes to mind. I haven't heard anything about Google being upset about Google Checkout being banned -- or more accurately, not being accepted after investigations by eBay as to whether it was a sufficiently safe means for payment.

CaptHenway · April 9, 2008 11:32PM

I refuse to use Paypal because they wanted my bank account information, and I don't trust them not to get hacked.

garsmith · April 10, 2008 12:07AM

I use PayPal for paying on eBay by choice; if they want to force it on me I will just stop using eBay

ziggy29 · April 10, 2008 12:09AM

The more crap they pull, the closer I get to closing my account. This is getting ridiculous.

doh · April 10, 2008 12:10AM

eBay has been forcing new sellers to offer Paypal for over a year. Granted, they let new sellers also accept checks and money orders, but Paypal is mandatory. This development has been on its way for awhile now. I suppose it would annoy me, but 3/4 of my sales are paid with via Paypal anyway. People complain about the fees, but you usually get more bids if you offer Paypal, it all evens out.

Like others have said, until eBay has a real competitor, they'll do whatever they want.

Zoins · April 10, 2008 12:36AM

Are buyers more protected with PayPal?

DennisH · April 10, 2008 12:40AM

If they do this in the U.S. I'm through as a seller. Period.

dac076 · April 10, 2008 1:59AM

eBay has been forcing new sellers to offer Paypal for over a year. Granted, they let new sellers also accept checks and money orders, but Paypal is mandatory. This development has been on its way for awhile now. I suppose it would annoy me, but 3/4 of my sales are paid with via Paypal anyway. People complain about the fees, but you usually get more bids if you offer Paypal, it all evens out.

Like others have said, until eBay has a real competitor, they'll do whatever they want.

AlixTCat · April 10, 2008 2:16AM

I don't think I'm in the minority when I say I ONLY accept PayPal. I used to accept checks and money orders. I had fraudulent money orders, fake checks... It was a real hassle waiting for the checks to clear. I lost money. I know PayPal is not the best set up for the user. I know they practically steal money from people with SNAD disputes.

They just sent me an e-mail this morning. It outlines the changes to their policies effective today. It almost made me want to close out my account. They are really not on the seller's side anymore if they ever were.

But, I find no other way to accept payment that allows me nearly immediate access to my money. There used to be other companies, but now it is just PayPal. Remember BidPay and the others? Now there is only PayPal and they make the rules.

Does anyone know of a better payment system that is allowed on eBay? I'd like to give them a chance.

Jonathan

Russ · April 10, 2008 2:20AM

<< I don't think I'm in the minority when I say I ONLY accept PayPal. >>

You are in the minority, and it's a small minority at that.

Russ, NCNE

dac076 · April 10, 2008 2:20AM

Unless I'm mistaken, Ebay started Bidpay to compete with Paypal. When it failed, they bought Paypal. And immediately raised the fees.

ziggy29 · April 10, 2008 2:22AM

<< Unless I'm mistaken, Ebay started Bidpay to compete with Paypal. When it failed, they bought Paypal. And immediately raised the fees. >>

And started banning other forms of payment.

IMO, they are getting dangerously close, in some cases, to monopolistic restraint of trade violations. This is one of them, using a wide-moat business to effectively prevent serious competition to some of their other business ventures.

doh · April 10, 2008 2:27AM

<< IMO, they are getting dangerously close, in some cases, to monopolistic restraint of trade violations. This is one of them, using a wide-moat business to effectively prevent serious competition to some of their other business ventures. >>

Is it a monopoly though? Until eBay says say, in America, that you can only use Paypal and no other electronic payment methods would I be inclined to say it's monopolistic. Paypal doesn't really have any competition do they? At least none that are of the same quality. Until something of equal value comes along and eBay just says "NO" users don't have much recourse. Well, except for cancelling their registration of course.

Russ · April 10, 2008 2:28AM

That article is not completely accurate. It isn't true that PayPal will be the only payment method allowed. Buyers can still use their credit cards and do not need to have a PayPal account.

The elimination of checks and money orders still stinks, though.

Russ, NCNE

Russ · April 10, 2008 2:33AM

<< That should pretty much end sales of items of value higher than the seller protection limit. >>

The limit is being raised to $20,000.

Russ, NCNE

ziggy29 · April 10, 2008 2:33AM

<< Is it a monopoly though? >>

Strictly speaking, no, not according to textbook definitions. I would contend it is a de facto monopoly because of the nature of its business. And when a business starts using its monopoly-like position in the marketplace to determine which grading services live or die, or which online payment services live or die, the potential for doing so in an anticompetitive manner in violation of anti-trust laws is certainly there.

Jcarney · April 10, 2008 2:34AM

<< This will hurt eBay if they try to force people to use paypal. Is it time for yahoo or google to come up with an auction venue to give eBay some competition? >>

The thing about bashing yourself repeatedly in the head with a brick is that it feels so good when you stop. Perhaps at some point, Ebay will realize this.

Russ · April 10, 2008 2:36AM

I agree with Ziggy. eBay is inching ever closer to the point where a legitimate antitrust case could be made.

Russ, NCNE

Jcarney · April 10, 2008 2:40AM

<< I agree with Ziggy. eBay is inching ever closer to the point where a legitimate antitrust case could be made.

Russ, NCNE >>

And I'm sure it's intentional. Their lawyers are probably working overtime trying to see how far they can get to the edge without actually going over.

Walmann · April 10, 2008 2:40AM

I wonder if they require Paypal as the only accepted method of payment if this will remove Ebay's own lack accountability under the safe harbor laws. I can't see how this protection can be extended to them any longer if the are the receiving and distributor of all payments. Would be nice if this bit them in the behind, a small payback for wanting additional fees on every transaction.

jmski52 · April 10, 2008 2:53AM

I refuse to sign up for paypal, and I refuse to use it. I helpfully educate every seller whose stuff I want to bid on that they are not required to specify paypal, even though ebay makes it appear that way.

If ebay goes to paypal only, I will stop using ebay. It's that simple, for me.

newbiecollector · April 10, 2008 3:35AM

If it wasn't the ability for me, to use paypal, I could never bid /buy on ebay.

I have no other reasonable way to pay people.

Of course I'm a smal time buyer so it probably doesn't mean much.

But for them to lock it and *say no oher way*.............. I think is just totally stupid, sure isn't a marketing plan that I can imagine

coinpictures · April 10, 2008 5:24AM

<< 

<< That should pretty much end sales of items of value higher than the seller protection limit. >>

The limit is being raised to $20,000.

Russ, NCNE >>

Actually, the article referred to the BUYER protection limit, whereas the person above was referring to the SELLER protection limit...

I also find it interesting that, according to the article, Australian PayPal users only pay 1.1% to 2.4% in PayPal fees... we're getting screwed.

eBay Australia Makes PayPal Mandatory

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