PayPal Problems May Put Card Sellers At Risk

storm888

It appears that PP may not be as "safe" as they claim to be.

Australian figures presented to thwart EBAY's push to go "PayPal ONLY"
on its Aussie site, show the following:

1. About 1 out of 3,000 credit card purchases processed through standard
merchant-banking accounts result in a finding of fraud via chargeback tally.

2. About 1 out of 300 credit card purchases processed through PayPal
accounts result in a finding of fraud via chargeback tally.

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4. Public Policy Benefits: Incidence of Fraud

15. Fraud statistics published by APCA in December 2007 indicate that the (TOTAL) level of card fraud in Australia for the period 1 July 2006 - 30 June 2007 is 0.0167 per cent of all transactions'.

The only available public information on fraud levels experienced by PayPal appears to be a statement made by Daniel Feiler, media spokesperson for eBay, quoted in the on-line publication "The Sheet" on 15 April 2008 saying that the incidence of fraud through PayPal now stands at 0.30 per cent of all transactions.

This is more than 10 times APCA's recorded incidence of credit/charge card fraud. Without further details from PayPal on specific fraud levels operating through PayPal, it is difficult to reconcile these figures.

kingraider75

yeah, I saw this on yahoo's AP wire. Sounds like pretty soon we will all have to use Paypal on ebay.

metalmike

As a former small time seller on Ebay, I have mixed feelings on this. Pro- Using Paypal is a a lot safer since it is so linked to Ebay. I have never used any other method of payment other than check/money order. Paypal allows the buyer to, or it used to- get the cash in the sellers hands quickly which meant faster shipping. Con- Ebay seems to be a dumping ground as most autos and game used cards sell for a lot less than book. At some point selers will tire of jumping thru hoops and some other site will figure out how to get the "small time collectors" to post cards for sale. But what about payment? I am now a "small time buyer" and Flea market seller and I like the idea of having Paypal as the only method of payment as imo I feel it will keep out more of the Josefina's of the world. Mike

yankeeno7

Soon ebay will be even more of a dumping ground because most of all the small sellers will be gone. If not in a store, you will see game used and autographed cards sold in large lots...sometimes you see this now but you will soon see it a lot more. Seems like ebay is trying to force out the small guys and make it a market for the legitimate businesses...or the ones that can survive under their current criteria. About the only time you will see the small sellers is when they have a pricey card to cash in on.