BidPay Closing Operations

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AuctionBytes Blog
News and insight focusing on
ecommerce and the online auction industry
by Ina Steiner, Editor of AuctionBytes.com

December 19, 2007

BidPay Closing Operations

By: Ina Steiner

Wed Dec 19 2007 20:19:43

If you haven't heard, today BidPay announced it is shutting its online payment service. I may have jinxed it - in writing about Amazon's new Pay Now buttons on Friday, I wrote, "There hasn't been this much competition for online payment services that could be used by small online sellers in a long time." mea culpa

The beauty of BidPay, of course, was that eBay allowed its sellers to accept it. Although, ever the ungracious host, eBay only protected buyers for transactions paid for with its own payment service, PayPal. (Since buyers used credit cards with BidPay, they did get protection.)

Sellers listing off-eBay still have choices (including Google Checkout and Amazon Payments), but for eBay.com sellers - especially those who just won't use PayPal - this is a major setback.

Full details in Thursday's newsletter, along with news of another industry closure. (How's that for a teaser?)

Comments (43) | Leave Comment | Permalink

Readers Comments

BidPay Closing Operations

by: Suzanne Wells

Thu Dec 20 13:38:17 2007

I'm with Starr - How is this eBay's fault? I personally never used BidPay and am happy with service from Paypal.

BidPay Closing Operations

by: LapisLee

Thu Dec 20 14:22:23 2007

Can you say 'monopoly'?

Permitted on eBay.com: Sellers may offer to accept PayPal, credit cards including MasterCard/Visa/Amex/Discover® Network, debit cards and bank electronic payments online for eBay purchases. Sellers may also offer to accept bank-to-bank transfers, often known as bank wire transfers or bank cash transfers. Sellers may accept COD (cash on delivery) or cash for in person transactions. Sellers may offer to accept personal checks, money orders, cashier's checks, certified checks and other negotiable instruments.

BidPay Closing Operations

by: Corporate Greed is out-of-control

Thu Dec 20 14:54:51 2007

Regarding the question about ''how this is eBay's fault?'' Simply go to this link: https://www.paypal.com/us/cgi-bin/webscr?cmd=p/gen/about-outside
R>PayPal was acquired by eBay... that's how it is eBay's fault. Also, re-read the article (at the top of this page) by Ina Steiner and note the second paragraph.

I can't even begin to understand why anyone would post a question like that in the first place!

BidPay Closing Operations

by: James R.

Thu Dec 20 15:57:30 2007

Of many auctions listing BidPay, only one buyer ever used it. I empathize with their plight-- trying to compete with an established, if flawed, mega-competitor. The deck was stacked against them, although the idea of accepting credit cards seems viable on paper. It was a shock to receive the email about their closing, but, as always, onwards and upwards. No use crying over spilt milk. Just call the cat.

Best,

James R.
Sierra Foothills

BidPay Closing Operations

by: Justin

Thu Dec 20 16:12:41 2007

I really thought bidpay had this the 2nd time around. but as they say 3rd times a charm! I'm just glad I switched my checkout in time!

Justin

BidPay Closing Operations

by: Greg

Thu Dec 20 17:38:32 2007

Does anyone know what to use besides paypal. Paypal is a bunch of theifs. They have stole atleast $400 from my account. I dont like to use paypal but it you dont have it on your auctions no one will bid.

BidPay Closing Operations

by: Ed

Thu Dec 20 17:58:31 2007

Not a surprise Bidpay angered a lot of people by re-opening as a Paypal wanna-be rather then offering the money order service that built their reputation but it's still sad news as i'll never use Paypal as their a bunch of theives which is not surprising as ebay also make unauthorized charges and refuses to refund and has members in the BBB to shut down any cases filed against them. Now this news gives ebay more opportunity to rip people off for more money by limiting your options.

BidPay Closing Operations

by: Chris

Fri Dec 21 01:48:57 2007

The problem is buyers are going to use what they know - and most all know Paypal. Not many have ever heard of Bidpay so why would they use it over Paypal? Sellers could care less that Paypal charges me more for fees - as long as they get their product. Nothing is going to change with ebay or Paypal until someone people know is allowed in - like Google.

BidPay Closing Operations

by: Eddie St Clare

Fri Dec 21 02:47:18 2007

If it helps, where Paypal is not an option for an International purchase or payment, there is a long term established UK business (AuctionChex) that may provide an alternative for some ?

Eddie.

BidPay Closing Operations

by: Sam

Sat Dec 22 19:29:42 2007

Eddie,

You mentioned AuctionChex, according to eBay that is not an approved service.

http://pages.ebay.com/help/policies/accepted-payments-
policy.html

BidPay Closing Operations

by: Mike

Sun Dec 23 11:38:52 2007

Due to PayPal's limited coverage for US sellers shipping overseas, we require most non-US buyers to send us a BidPay payment, or to send us a bank-issued certified check in USD. Average eBay transaction is $600, so avoiding chargeback scamming is a big issue for us.

For the second time in our online sales history, we will miss BidPay. This will force us to stop taking eBay bids from sellers in countries that PayPal does not Confirm the delivery address.

BidPay Closing Operations

by: John

Sun Dec 23 18:35:31 2007

Payment Services permitted on eBay: Allpay.net, Bidpay, cash2india, CertaPay, Checkfree.com, hyperwallet.com, Moneybookers.com, Nochex.com, Ozpay.biz, Paymate.com.au, Propay.com, XOOM

BidPay Closing Operations

by: Ainsworth

Wed Dec 26 11:00:06 2007

I take exception with the following misleading comment in your article ...

''eBay only protected buyers for transactions paid for with its own payment service, PayPal''

eBay does not protect anyone. Neither does PayPal. The typical transaction is only protected up to $200, so if you make a large purchase and the seller is fraudulent you may still be out significant sums. The PayPal recovery process also lacks transparency, you can never be sure that PayPal did not recover the total value of your purchase and then only gives you $200 of the funds recovered.

The solution pay with PayPal using your credit card. Then do a charge back whenever you need to.

BidPay Closing Operations

by: Erik

Thu Dec 27 11:22:11 2007

Bidpay was used extensively by the Gunbroker community, and will be greatly missed. Does anyone know of a payment service that allows firearms related transactions?

BidPay Closing Operations

by: Robert

Thu Dec 27 12:10:24 2007

I don't under stand, I have been on both ebay - PP since they started and have never had a problem! I can only figure that everyones issue here is with success of an American company? both have protected me as a buyer and seller, if they closed your account it must have been a good reason, and that protected me too.

BidPay Closing Operations

by: Gary

Fri Dec 28 16:06:34 2007

I too have been ripped off by Paypal in a transaction with a crook in Hong Kong. I don't know where they came up with the idea that if a buyer doesn't get insurance that Paypal will come to the rescue and take money from sellers accounts. Sounds like robbery to me.
Never, Never again. And for anyone that thinks Paypal is the way to go, just wait until it happens to you. Good Luck!

BidPay Closing Operations

by: kris

Mon Dec 31 18:18:37 2007

Does anyone know anything about auctionpay.com and if this is allowed to be used on ebay? Is it safe and will ebay allow this payment site?

BidPay Closing Operations

by: chris

Tue Jan 1 18:41:31 2008

paypal sucks I have herd so many horror stories,www.suepaypal.com they don't alow guns but they do porn? all I herd from the net was paypal/ebay put bidpay out of business in many ways it will be out soon in Wsj IM sure again ebay rips us all off hmm wonder if th Bush family is major stock holders now too?

BidPay Closing Operations

by: Bob. H

Wed Jan 2 09:34:36 2008

After reading these posts, I'm even more convinced that eBay/PayPal has way too many sellers (that use their services) who DON'T HAVE A CLUE.

According to them, eBay is out to get them for no reason and is trying to rip them off any way they can! Come on people, could it be possible that maybe, just maybe, that you're at fault.

I've had over 4000 eBay/PayPal transactions with only ONE chargeback. Yes, I lost it because I couldn't prove delivery. My fault -- I lost track of the delivery confirmation number. I've also had 4 rulings in my favor because I had folllowed PayPal's procedures for shipping (and could prove delivery confirmation).

Protect yourself and use the services properly and 99.9% of the transactions will be just fine. Quit whining about stuff, accept responsibility, and you'll probably be OK. MILLIONS of PayPal sellers have no problems with eBay and/or PayPal. If YOU are having issues, look within.

Conspiracy theories float on these forums like water down a mountain stream...eBay is not THAT powerful that they can put BidPay out of business. Lack of business for BidPay put them out of business. Statistically speaking, they weren't cheaper than PayPal. As a seller, I actually trusted PayPal more than BidPay.

PayPal is not tring to screw anybody over...they're trying to make money. The fees are appropriately priced for this type of service. Small storefront retailers pay these kinds of fees all the time when processing credit cards.

And, if you do end up with a loss...it's part of doing business!

BidPay Closing Operations

by: Joel

Wed Jan 2 13:15:06 2008

I am really sorry for BidPay since it was an alternative for us who live in small countries. Anyways thats the way the things go...

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