eBay PayPal Glitch Affecting 3rd Party Checkout

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

November 14, 2008

eBay PayPal Glitch Affecting 3rd Party Checkout

By: Ina Steiner

Fri Nov 14 2008 21:26:29

I received a call from a very frustrated eBay PowerSeller about a glitch that is causing PayPal to undercharge customers for eBay purchases. The PowerSeller uses a third-party checkout system and has had to basically shut off PayPal payments all day.

PayPal spokesperson Michael Oldenburg said, "I can confirm that there is a known issue that is occasionally causing buyers to be charged incorrectly for shipping fees through PayPal when paying for items on eBay. Our technology teams are working to further investigate and correct the issue as fast as we can. At this time, we believe that the issue is limited to a subset of transactions where the seller is using a third party checkout provider on eBay."

I haven't seen reports of the problem on discussion boards other than on one third-party vendor forum. But sellers should remain diligent in cross-checking payments received with invoices.

BTW, here's another one someone sent me regarding expected shipping times - looks like on the winning bidder emails eBay sends to buyers it sometimes reads, "Estimated delivery: Varies (This Shipping Service delivers within -1 day after seller ships item) Shipping & Handling: Standard Flat Rate Shipping Service."

Comments (11) | Permalink

Readers Comments

eBay PayPal Glitch Affecting 3rd Party Checkout

by: ebuyer feedback

Fri Nov 14 23:06:27 2008

Paypal PR Spin is pathetic, always “A very limited amount of people are involved” but as always turns out that MANY paypal users are affected.

Why oh why is eBay Inc plagued by constant system errors and Glitch’s …look Glitch up and it will just say eBay

Almost every Glitch comes down to sellers loosing out ? how come!...I have never had a Glitch that actually gave me more for shipping or reduced my Paypal fee…needless to say may times I’ve been over charged on fee’s and lost money to buyers?
WHY

eBay Inc is now just a headache for any large volume sellers…and with falling ASP etc, there is going to be an Exodus of biblical proportions in the next few months

eBay PayPal Glitch Affecting 3rd Party Checkout

by: eBuyer Feedback

Sat Nov 15 04:59:53 2008

@ ebuyer feedback

Please don't post under that ID. You do make an excellent point, however.

eBay PayPal Glitch Affecting 3rd Party Checkout

by: AWARENESS

Sat Nov 15 08:23:55 2008

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FIRE JOHN DONAHOE!

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ohoe

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Share your story at:

http://www.myblogutopia.com/2008/11/looking-for-more-dolphi
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Learn More at:

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eBay PayPal Glitch Affecting 3rd Party Checkout

by: HOW TO "FIX" eBAY

Sat Nov 15 08:50:05 2008

ATTENTION: PAYPAL IS NOT A BANK!
Before you read any further, you must completely understand that fact! I sympathize completely with all of you sellers who have been robbed by dishonest buyers who've taken your merchandise and then also taken back their payment for it...and all of you buyers who've had your personal financial information taken by dishonest sellers. All of these illegal acts have been enabled and facilitated by Paypal and eBay.

Paypal holds your money for days and weeks - yet it doesn't pay you interest. A bank must pay interest by law, as regulated by the Federal banking authorities. Paypal can take money out of your personal checking/banking account. Banks can only do this with a Court order. WHEN 'THREATENED' IN THE UK, AS WELL AS IN AUSTRALIA, TO BE REGULATED UNDER THOSE COUNTRIES' BANKING LAWS, PAYPAL TURNED TAIL AND RAN, REGISTERING THEIR 'SERVICE' IN LUXEMBOURG.

You may post messages on these great and informative blogs, a public service in themselves. This is all well and good and serves to help one somewhat feel better over your losses at the hands of the Paypal and eBay thieves. But afterwards, and it only takes a few minutes, write your congressman, or write the banking authorities. Regardless of your party affiliation - we're all Americans and we need this to be done for all of our good, you can write Senator Charles Schumer from New York State (he's already received more than a few) or write Representative Barney Frank of Massachusetts. New York Attorney General, Andrew Cuomo, is attuned to help consumers and definitely would like the chance to expose the deceptive practices of both Paypal and Ebay. Write and ask why is it that Paypal can operate as a bank without being regulated as a banking institution. Just yesterday, Senator Christopher Dodd of Connecticut, gave a news conference on how banks/financial institutions should be "looked into" as to the consumers' rights not be violated. he also would be an excellent choice to write to and inform him of your struggles with Paypal - more so, how Paypal can operate handling large sums of money and NOT pay interest. It is wrong! You can always write the SEC, the FDIC and the federal banking authorities and ask them to look into it. Demand that Paypal be regulated by United States banking laws. All of this thievery perpetrated by this now-bogus service will then all be held accountable. It's simple and would immediately cause a beneficial change. Just write that note. It only takes a minute and will accomplish so much! Remember: PAYPAL IS NOT A BANK - UNDERSTAND THAT FACT - it must be corrected!

It is laughable how Paypal moved quickly in reference to this eCheck scam business. Big deal - THEY STILL HAVE NO RIGHT TO GO INTO YOUR BANK ACCOUNT, HOLD MONEY WITHOUT PAYING YOU INTEREST, AND GO UNREGULATED BY US BANKING LAWS. THEY DO NOT GUARANTEE THE SAFETY OF YOUR MONEY THAT THEY HOLD. IF THERE IS ANY SORT OF LEGAL ACTION AGAINST PAYPAL AND THEIR ACCOUNTS ARE TIED UP, THERE WOULD BE NO RECOURSE FOR YOU, THE BUYERS/SELLERS, TO GET YOUR MONEY BACK. Ask PAYPAL: "Is my money insured and safe AND by what guarantee?" They could not give you an honest answer! Imagine that!!!! I'm sorry to shout - but it is a terrible thing how the scam artists of EBAY and PAYPAL are allowed to illegally run roughshod over us Americans and steal our money...be it five cents or thousands of times that.

eBay PayPal Glitch Affecting 3rd Party Checkout

by: RicRoe

Sat Nov 15 15:37:15 2008

PayPal can't seem to string together even a week without some glitch or another which impacts transactions on eBay.

Worse is the fact that most often these 'glitches' are not even posted publicly as eBay/PayPal tries to deny/bury the problems even exist.

These constant glitches cost sellers money and with eBays DSR system, causes sellers to be rated poorly by buyers for errors and delays that are not the fault of sellers. Worse is that sellers are the ones that end up with account restrictions or suspensions as a result of circumstances caused by PayPals constant operational issues.

It is strange that since eBay has forced all sellers to offer eBay that the number and frequency of these issues increased.

PayPal needs to be investigated.

PayPal needs to be forced to become classified as a bank in order that they are compelled by law to offer quality, accurate and timely transfers of payments to their members.

The current classification of PayPal as being only a 'service' allows these irregularities to perpetuate and continue, as well as allowing PayPal to illegally withhold payments from sellers.

If PayPal was forced to become a bank, delays in payments would be prohibited as would account holds.

Additionally, members would have recourse other than to complain to the inadaquately staffed and poorly trained PayPal customer lip service department which is worthless as agents are powerless to assist customers.

Members of PayPal should write Senator Chirs Dodd and Senator Charles Schumer to demand that Congress intervenes on behalf of consumers and investigates PayPal with an eye to forcing them to comply with Federal Banking regulations.

eBay PayPal Glitch Affecting 3rd Party Checkout

by: George

Sat Nov 15 19:04:44 2008

"Glitches" - yeah right!!!
I was one of the 'pinks', workers from ebay, recently fired. I think it's about time that the public know what a sham Paypal and Ebay have become. Ebay owns Paypal. Except for very early on, the first few months of it's operation, paypal never had/have any glitches. This is all to keep the buyers/sellers' money and gain revenue from it. Of course, they do not pay interest to the buyers and sellers. As for the reporting to the IRS, that's also baloney: IRS reporting is to start for the calendar year 2011. These revenues now reported couldn't be included on any tax returns/reports. That is all 'blather' - a lame excuse to cover up for their phony 'glitches'.
As stated, paypal is not a bank, not regulated by banking laws, and so far, not accountable for the money that they basically steal from sellers and buyers. They have to be subjected and regulated by US banking laws. They hold your money...it's as if you gave your money to a stranger on the street and said 'hold this for me' and then you hoped that you would get it back. That's a very simple equation, but also very very similar to what you run into with paypal and ebay. After the elections are over and done with, the new administration would definitely be friendlier to consumers (remember, Meg Whitman was a strong supporter of McCain - and vice versa.....an excellent reason, alone, NOT to have cast a vote for McCain!). But to get back on track, Paypal must be regulated and held accountable. The new politicians elected can remedy this once in office. You see how Paypal operated differently in Australia with these fake 'glitches'. They fear the legal backlash that they have already unleashed by their duplicity in Australia and cannot, there, get away with the lies that they spew out here in the States!
Senator Christopher Dodd, this past week, given a speech about the abuses of customers suffered at the hands of the banks and credit card companies. He favors oversight and guidelines. Write him about Paypal and Ebay...Ebay owns Paypal...and complain how this miserable company can operate and handle millions of dollars without oversight and regulation. WRITE HIM. The change will then come. Once Paypal is looked at, it never could operate as unlawfully as it does - case closed!

eBay PayPal Glitch Affecting 3rd Party Checkout

by: CHRIS ALLEN

Sat Nov 15 20:39:46 2008

We have been dealing with this issue and if you enable PayPal express 3P checkout with ChannelAdvisor works correctly. The only drawback is that the eBay coupons will not work with PPEC turned on, so you need to see which is more important. This has been a nightmare. Also, it started at around 7:30AM PST because that is when we got our first incorrect payment from PayPal.

Chris

eBay PayPal Glitch Affecting 3rd Party Checkout

by: o.c.d.collectibles

Sun Nov 16 08:19:14 2008

It seems to me that EVERYTHING related to ebay and paypal appears to be MANIPULATED by it's programming. It has been a constant problem, even in the search pages loading (I made a joke out of it on the seller central forum which brought the attention of "Maeve", the pink, immediately to the rescue!LOL).
When pulling a specific search, the page is held up by the downloading of several flash ads, and when they finally load up, the entire page jerks upwards so that my cursor lands on it! I actually have to keep my cursor leveled on my toolbar in order to avoid getting pulled into a "forced click". I am not imagining this. It only happens on ebay.
I have no other problems like this on any other site. I can hop around all over the web and search numerous sites without any problems.
When the problem is then echoed by everyone on the thread who posts, it just gets ignored. It then becomes a problem that is due to our "connection speed".
The site is forcing the shipping fees to be what they want them to be.It is forcing sellers to use paypal, and it is forcing the diamond and platinum seller's items to the tops of every page.
The individual seller cannot survive under these conditions, on this site, and it has become a real pain in the neck to navigate and look for anything special.
Ebay used to be a special place. It is now a manipulative commercial site worse than most. I'd rather shop "live" and stand in long lines and have a hard time parking somewhere, than shop on ebay.
I don't like the idea that I'm being manipulated into looking at and buying something ebay wants me to purchase.
It's very bad marketing. VERY bad!

eBay PayPal Glitch Affecting 3rd Party Checkout

by: o.c.d.collectibles

Sun Nov 16 08:25:46 2008

By the way, stay away from Channel Advisor, They have a very special arrangement with ebay and they have a lot to do with all of the negative changes. I wouldn't be surprised if there was more behind their arrangement than we can even imagine. Just be aware.
I've picked up on a great deal of the nuances that I've seen on this site, since December 2007, and I have not been wrong yet.

eBay PayPal Glitch Affecting 3rd Party Checkout

by: AK

Tue Nov 25 07:17:07 2008

I'm using both services and can report they are ok for me, i haven't got any issues with them. Maybe i'm lucky :)

eBay PayPal Glitch Affecting 3rd Party Checkout

by: AK

Tue Nov 25 07:17:29 2008

I'm using both services and can report they are ok for me, i haven't got any issues with them. Maybe i'm lucky :)

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