New EBAY sellers will have to use PayPal

sonoranmonsoon

I was reading my ebay newsletter today and noticed that new Ebay sellers will be forced to accept PayPal. Those of us that already sell on ebay will be grandfathered in, and not have to accept paypal. I know ebay owns paypal and can do what they want. But, I would find it very upsetting if I had to accept PayPal for items that sell for over $2500. I would be very concerned being forced to accept a form of payment that does not provide seller protection above $2500. In addition, many sellers may not want to mark their items up the additional 3-5% to cover this forced expense. I can not imagine someone being forced to accept paypal for a $10,000 sale, getting a chargeback, then having to rely on Paypal to decide if they get their money back. I do believe ebay has shot themselves in the foot here, and will see a decline in higher end items being sold by new members. What are your thoughts?

ONETHREE

I think it is a lawsuit waiting to happen.

arthurlegand

as far as i know the majorty of people already do

TorinoCobra71

<< <i>I think it is a lawsuit waiting to happen. >>




No its not, Its Ebay watching their A$$ and helping out their other owned company make money.......

"Plain and Simple"

TorinoCobra71

Russ

I think it's an excellent move. It makes it far more difficult for the slimeballs to rip off bidders.

Russ, NCNE

sonoranmonsoon

<< <i>I think it's an excellent move. It makes it far more difficult for the slimeballs to rip off bidders.

Russ, NCNE >>



Russ, I understand your point on low end items, but what about the items priced higher than their seller protection covers. They are forcing new sellers of high end coins to accept a payment option that is not protected. At least with a check, money order or cashiers check; the seller can wait for it to clear. Paypal does not protect the higher priced coins above a set amount. As I see it, they are forcing new sellers to accept addittional risk, without any compensation.

LindeDad

Do that many high end coins actualy sell on eBay?
I would think that Heritage or even Superior would be a better venue for that market.

iras4

Many here may remember my PayPal horror story. A customer bought a real nice 1909S VDB 1c PCGS MS-65 Rd (a blazer, no spots or stains or hits of significance) for $6112 on eBay in Nov. of 2005 and charged to his AMEX card usuing PayPal .

Buyer left good feedback and I did the same, but 3 1/2 months later, Paypal froze $6112 in my bank account. After investigation, I discovered that the buyer sold the coin to a local coin dealer in Birmingham, AL at a loss so he decided not to pay his credit card bill, said he didn't have the money.

AMEX suggested he inintiate a chargeback stating that the charge was unauthorized. This way, he did not have to send the coin back as it would be treated as an unsolicited "gift." Although I submittted proof of delivery, this was not enough.

I had the sheriff's office bring the seller in for questioning for possible charges of wire fraud and postal fraud. He then promised to pay me the balance, ultimately paying close to half. The buyer, frightened about prosecution, contacted PayPal stating that he had initiated the chargeback by mistake and that he had received the coin in proper order. By accepting ANY money from seller as I discovered, the case was no longer a criminal matter.

Paypal , a few days later, said that although buyer had contacted them and stated the above, it was not sufficient to cancel the chargeback, and that funds had now been realeased to AMEX.

Bottom line, I am using binding arbitration against PayPal for the balance. I should have an answer in a couple of weeks. I'm not hopeful. I would have preferred mediation but PayPal will only use arbitration in matters under $10,000 and no mediation regardless of dollar amount in dispute. To add insult to injury, PayPal charged me an additional $125 as a service fee!

I generally do not accept PayPal anymore for purchases abover $2000.

Ira

zkcoins

Ebay has been seeing declining revenues for a little while now...so their stock price has suffered and so, they must of course drive revenue to help boost the stock price or think of somewhere else to generate revenue. Paypal being forced is a way for them to increase the needed revenue.

Personally with a p/e of 42 I wouldn't touch the stock despite it having a 5 star rating from morningstar and a buy bid of $8 above the current market price.

WaterSport

So the slow death of EBay continues, because the Harvard Business School models teach only continued growth can sustain a business. Let’s see what a 20% loss of sellers does, Followed by some start up auction in someone’s basement server. I am so damn tired of wannbe dealers and their two page descriptions of who they are and what they stand for and what they will do to you if you do not pay in three days. And least not forget our favorite budding entrepreneurs who attend EBay college and buy the latest books on how to make millions on EBay and in fact, Charge Millions. I always appreciate $10.00 shipping and handle ling fees for nothing but a 65 cent stamp envelope with a 2x2 enclosed. And can the marketers and Madison Avenue types come up with any more junk, crapped out, off color, eye catchers that look like the billboards on the interstate that you can pay an extra fee to snag your sucker. Whatever happened to that good ole one-on-one buying and selling like long ago? Will this Paypal requirement be the annual fee increase I was expecting any day?

I predict EBay will be history in less than 5 years.

bushmaster8

Absolutely the worst move Ebay has ever made!

PAYPAL SUCKS!!! If you use it long enuff, sooner or later you will get burned. There are sooo many Paypud horror stories out there!

sonoranmonsoon

<< <i>

I predict EBay will be history in less than 5 years. >>

I do not think ebay will become history in a few years. The world is coming to an end predictions have always been wrong when it comes to ebay. However, I definately think a decent competitor needs to emerge to help keep ebay in line. So far they have been able to play the big bully role. I certainly hope they price themselves out of the market enough to allow stiff competition to emerge. Unfortunately, I am not holding my breath.

Waldo

<< <i>Absolutely the worst move Ebay has ever made!

PAYPAL SUCKS!!! If you use it long enuff, sooner or later you will get burned. There are sooo many Paypud horror stories out there! >>



I've been using Paypal for years without any problems. Although some have had troubles, its almost an urban myth with the horror stories. The vast majority of horror stories comes from MLM marketeers who had accounts frozen. And the myth continues...

rcmlgm89

I like it. I have been buying and selling coins on ebay for five years and have never had a problem with any of the people I deal with. Last month I won an ipod (not a coin, but a gift for my wife) and paid as I always do with paypal. Then next day the seller became "delisted " with ebay. After a few weeks and no return email, I filed a report with paypal indicating fraud. Long story short, they refunded me the amount I had paid. Can't beat that kind of program.

I think that ebay and paypal are here to stay and a great investment at the current price!

I think that you might say that this is the OTHER side of the coin.

Ron

sonoranmonsoon

<< <i>I like it. I have been buying and selling coins on ebay for five years and have never had a problem with any of the people I deal with. Last month I won an ipod (not a coin, but a gift for my wife) and paid as I always do with paypal. Then next day the seller became "delisted " with ebay. After a few weeks and no return email, I filed a report with paypal indicating fraud. Long story short, they refunded me the amount I had paid. Can't beat that kind of program.

I think that ebay and paypal are here to stay and a great investment at the current price!

I think that you might say that this is the OTHER side of the coin.

Ron >>


Ron, I agree with you on the point that PayPal has improved it's protection program significantly. I am very happy to accept it up to a certain sales point. My problem is this. How can you force someone to accept your payment option for sales prices above your protection limit. If PayPal only protects up to $5000, then new sellers should not be forced to accept it for sales above that price.

bsb

RBinTex

"I cannot figure out why anybody would ever give anyone their bank account numbers..."

I guess you never write a check either.

All you have to do to "protect" yourself (in the scenario you allude to) is have the bank account linked to PayPal have no more than the amount of the largest 1 or 2 PayPal payments (in case of a charge back) in it at any one time.

Of course the dishonest lowlives among us will say keep nothing (or as close to nothing as possible) in the account so if things go bad (i.e. chargebacks) they can slither away to the nearest rock to hide under & let PayPal pound sand.

btw, I've had a PayPal chargeback up to 7 months after the sale - albeit initiated by the buyer via his credit card company. PayPal had no choice but to put a temporary hold on the funds until it was made explicitly clear to the credit card company that the time for chargebacks (even by THEIR OWN rules) had long passed. After a few weeks they released the hold.

The law of large numbers lets me not worry about such trivial matters...

Russ

<< <i>I cannot figure out why anybody would ever give anyone their bank account numbers (Paypal or not). >>



That kind of statement always cracks me up. Right now, dozens of companies have your bank account numbers, your credit card numbers, your address, your phone number and a whole host of other information about you. Unless, of course, you're living in a cave on some remote island.

Russ, NCNE