eBay to Expand Allowed Payment Services in 2009

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

August 29, 2008

eBay to Expand Allowed Payment Services in 2009

By: Ina Steiner

Fri Aug 29 2008 19:49:04

eBay spokesperson Usher Lieberman said eBay would allow additional payment services on its site next year. The company had announced earlier this month a ban on all but PayPal, credit card merchant accounts, ProPay and payment upon pickup in most categories beginning in late October 2008.

But in January 2009, eBay will integrate all of the approved electronic payment methods into eBay checkout. According to eBay's current Accepted Payments policy, here's a list of approved methods:

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

Here's what Usher wrote: "eBay is working closely with the other payment vendors currently included in our Accepted Payments Policy to include them in the permitted electronic payment methods on eBay.com in early 2009. To be included, they must meet fraud, information security and uptime standards, and complete the needed product development work to integrate into eBay Checkout. Only ProPay was able to meet these requirements in time for the October payment changes. We hope several others will meet the requirements by early 2009."

eBay is banning paper payments. However, provided the seller has not solicited paper payments, they could - upon buyer request - accept them.

With regard to seller concerns over how eBay will enforce its ban on paper payments, Usher supplied the following information from John McDonald, Senior Director of eBay Trust & Safety:

When the payment changes go into effect in late October, a seller cannot in any way solicit check or money order payment from a buyer. This is considered "abuse of the payments policy". eBay will take action against such abuse. One way we will detect abuse is from reports from buyers. We will also monitor checkout completion rates for sellers, and this has generated a lot of questions from sellers. Here are some clarifications:

* eBay will not automatically take action against a seller with a low completion rate. We realize that there are many valid reasons for low completion rates.

* We will investigate sellers with low checkout completion rates on a case by case basis. Specifically, we will check to see if the seller is soliciting check or money order payment from their buyers. If we don't find any evidence of this occurring, we won't take action against the seller.

Comments (58) | Permalink

Readers Comments

eBay to Expand Allowed Payment Services in 2009

by: EH1984

Fri Aug 29 20:29:07 2008

In 2009 all non-PayPal payments will be funneled through the Payflow Gateway*, an eBay/PayPal product. Leaving sellers with the choice of receiving funds through PayPal or laundered by PayFlow (PayPal).

* http://workshops.ebay.com/thread.jspa?threadID=13000000408&tstart=40&m
od=1219440389051
''sellers with internet merchant accounts can in January 2009 connect that account to eBay checkout via the Payflow Payment Gateway''
Monroe Labouisse
Director of North America Marketplaces at PayPal

Hmmm. PayPal or PayPal.
There's a choice here?

''Any customer can have a car painted any colour that he wants so long as it is black.'' Henry Ford, 1922.

eBay to Expand Allowed Payment Services in 2009

by: tula

Fri Aug 29 20:33:46 2008

Interesting. I wonder why these payment services are not considered competition to Paypal, while Google checkout and Amazon payments are? Seems to me, they all mostly do the same thing (unless I'm missing something obvious). I can understand about Amazon, since they are a competitor, but why not Google? Google isn't a retailer and eBay already has an advertising relationship with them, so why not accept their payment service? They could always offer incentives for using Paypal to make sellers more likely to use it.

Personally, I'd like to be able to accept whatever service people want to use to pay me. Ebay is so focused on the "buyer experience" so why not make it as easy for the buyer as possible to use any of the major payment services, including Google? If a buyer contacts me wanting to use Google, you can bet I'm not going to turn them away.

eBay to Expand Allowed Payment Services in 2009

by: Patricia

Fri Aug 29 20:55:34 2008

I have to laugh at this because now finally...and completely, Ebay gives up that "we are only a venue" wall they've been hiding behind for years. Their greed is making them sloppy!

eBay to Expand Allowed Payment Services in 2009

by: Patricia

Fri Aug 29 20:57:00 2008

@ Tula - maybe google and amazon refuse to give ebay a kickback on their fees? I'm betting that's probably the reason ;-)

eBay to Expand Allowed Payment Services in 2009

by: meme

Fri Aug 29 21:00:06 2008

This really p_____ me off----what eBay is saying now is "We will investigate sellers with low checkout completion rates" --I do not report non payers out of fear of their dinging me-(I have had 10 recently) and E gets their FVF because I do not report. Now I am going to get it from E b/c they think I am taking money orders and they are not in control and getting their fees...does it ever end?

eBay to Expand Allowed Payment Services in 2009

by: E-bay Seller & Buyer

Fri Aug 29 21:10:37 2008

Well ,I guess this news is supposed to make you feel good.More of the same threat's again.Sellers should have the choice they want to accept whatever payment they see fit without any hassle from ebay.It was easy to make my decision to stop selling or buying.

eBay to Expand Allowed Payment Services in 2009

by: eieio

Fri Aug 29 21:16:33 2008

Ebay is within its rights to demand no paper payments but I fail to see what possible risk it is to them if a seller accepts checks and money orders. As a seller, I take full responsibility for all charges, loss of income and product + shipping and ebay still gets its cut, so if I'm okay with it, why all the malarkey?

The only answer I arrive at is that paypal will not receive a processing fee when I process the payment. That makes this nothing but another shameless money grab from the almight blue blooded ivy leaguers using strong arm tactics.

And they look down their noses at our little flea market.

eBay to Expand Allowed Payment Services in 2009

by: tj

Fri Aug 29 22:14:05 2008

what they also don't say is the payment portal is a partnership with Praypal !!!!!

Far too much info going to eBay Inc via merchant account payments etc

This and the anouncemnt of NO more 99p (thats over $1.50 guys)listings on ebay UK are plain madness...but we knew that already

eBay to Expand Allowed Payment Services in 2009

by: Gary

Fri Aug 29 22:49:09 2008

ebay will gladly take checks for payment of fees... Go figure.

eBay to Expand Allowed Payment Services in 2009

by: brj

Sat Aug 30 08:52:08 2008

What about google checkout conveniently they are not mentioned at all ??????????????????

eBay to Expand Allowed Payment Services in 2009

by: Pete

Sat Aug 30 12:40:59 2008

OMG people! If you go to your local store and it does not accept checks or certain credit card, are you going to scream and stomp your feet in the store like a baby? I answer is no, you are probably going to use the method of payment the store accept. Deal with it. I have been to stores that do not accept JBC and Diners, so I used my Master or Visa. I have been to MANY stores that never accept cheques. So again, I use credit cards. Big deal. I think if I own paypal, I would never want another competitor to one up me. It's business. You suppose to win every single time. Think about it, if it is your business, would you want another competitor to win. Your answer is probably no.

eBay to Expand Allowed Payment Services in 2009

by: tiredofebaygames

Sat Aug 30 12:54:27 2008

Pete-

eBay claims it is not a store, just a venue so they are not taking the paper payments for us.

Our stores are our stores unless eBay wants to claim us as employees. If that is the case, I want a RAISE! since they are OUR stores, we should be making this choice just like brick and mortar stores do.

There is a big difference here. It is nothing like walking into a store - according to eBay.

eBay has stated via on eBsy Ink - they will not allow Google Checkout due to competition. Talk about chicken! If PayPal was so wonderful, then they would allow GC because the would have nothing to worry about.

eBay to Expand Allowed Payment Services in 2009

by: Nick

Sat Aug 30 13:25:32 2008

Since ebay owns paypal it's only a matter of taking the biggest chunk of $$ they can from us sellers. You list - you pay listing fees - you sell - you pay FV fees AND with the new paperless payment policy now - you also pay Paypal fees on every sale most likely because most people don't accept direct credit card payment as though they're a large retailer or the like. If ebay's ONLY a "venue" (lmao!) then why is it they're telling US what method of payment WE can/can not accept?? Isn't that OVER-stepping the "venue" line and acting as though they are the owner of MY/your business?? How do they know what's good/not good for me/my business as a payment method?? I am not going to be selling anymore - I am a plat. power seller having done a 1/2 million dollars in sales per yr for the last 6 yrs but they can kiss that chunk of $$ goodbye now (all the listing/ending fees and paypal fees) from those sales because I refuse to accept paypal and won't accept/don't accept credit cards as my product doesn't allow for me to accept those type of payments due to fluctuations in the silver/gold markets and by nature of the product itself. It's the same as walking into a coin shop and trying to use a credit card/paypal - you'd be LAUGHED at and asked to leave the store! Most coin shops don't accept those forms of payment and IF they do - it's only on certain coins (no bullion gold/silver) PLUS they mark the sale up approx. 5% to cover the fees of the credit card. When a customer is buying 10,000.00 in product and then you tell him he has to pay 5% more because of a credit card fee - they don't like hearing that. It's also too risky for the seller because IF they do a charge back - the seller is FORCED into refunding the entire purchase price BUT - there could be a HUGE difference in "value/worth" of the product now because IF the gold/silver market dropped since the time of purcahse - the product value is less (could be MUCH less) and so now the seller is the one who incures a loss due to the drop in market prices. No thanks = hence NO more selling for me because I'm not accepting the extra fees from paypal NOR any loss due to market changes in the event a buyer files a dispute for a refund (which I've already had happen once) and lost $3000 because of it. Hope ebay's happy with their new "policy changes" and with how they're going to continue to lose more and more sellers for the same/similar reasons!

eBay to Expand Allowed Payment Services in 2009

by: Sally Olson

Sat Aug 30 13:50:35 2008

In Australia it became obvious that using ''PayPal Only'' as a form of payment would instigate legal problems. Even more so in the USA. We could sue as civil suit and thousands of independent suits. So, to avoid the legal hassle, I believe eBay is offering a very limited avenue of other payments. Had they said PayPal only it would have been chaos. It's so sad to see the ''old eBay'' with its level playing field becoming this complicated (''Amazon.com wannabee'')platform that discourages elderly folks, young people in college and so many others to supplement their income by using this platform. I will continue to sell on eBay, but it will be very limited. Thank you Ina, for keeping us up to date with eBay's plethora of policy changes.

eBay to Expand Allowed Payment Services in 2009

by: Nick

Sat Aug 30 13:53:33 2008

Also - think about it - ebay's the only one really making any money since FORCING sellers into accepting paypal because let's get real here - how many sellers are going to set themselves up to accpet credit cards? Buy the machine, pay the monthly fees for the use of it - etc. PLUS listen to buyers tell them they want to use paypal anyway?? Not many (what's the sense and why go thru the hassle?) at that point - why not just use paypal since most sellers already have an account with them anyway? That's what ebay's counting on here, and since that's the most likely outcome behind this whole "use paypal or get off the site" thing - ebay now gets more of your profit margin than you do on a sale! Say you sell $100 items that you were making $10 on after paying ebay say $10 in all fees to list/sell the item while you were accepting MO's and/or checks of any form but now since you're forced into using paypal - give them another $5 in fees on top of the initial $10 for the same item/s and guess what - ebay's making $15 of you/your sale while YOU go from making $10 down to $5 thanks to them cutting into your profit by forcing you to use THEIR paypal payment method! No thanks again!

eBay to Expand Allowed Payment Services in 2009

by: WindsorBear

Sat Aug 30 14:04:50 2008

In the real world, eBay would not be a store, it would be more like a mall, and you as a seller would be one of it's stores. When I go into a mall, I expect it to be a safe place to shop. However, I don't expect it to dictate to the store owners as to what type of payments the stores will accept. Nor do I expect it to cap the stores' shipping prices, or to enact sanctions on the store for not maintaining a perfect customer service rating. As long as the store pays it's rent to the mall, the mall is usually content to leave the store alone as long it conducts itself within legal guidelines. And THAT is what eBay should be doing. But, like anyone else with little to no ethics, it is going to continue to push the envelope to see just how far it can go... that is... until the buyers and sellers have decided it has gone too far and stop using it. In the end, it's the buyers and sellers decision. If you think eBay has overstepped its bounds, THEN STOP DEALING THERE. There are other places to go. I pulled all my auctions off and went to another site. I am very happy there. As buyers and sellers, you can do the same thing. It's up to YOU to show and tell eBay that they have gone too far.

eBay to Expand Allowed Payment Services in 2009

by: EbaySucks!

Sat Aug 30 15:43:20 2008

Why would I trust the names of these companies: Allpay.net, cash2india, CertaPay, Checkfree.com, hyperwallet.com, Moneybookers.com, Nochex.com, Ozpay.biz, Paymate.com.au, Propay.com, XOOM

HYPERWALLET.COM? NOCHEX.COM? CASH2INDIA?! What the hell is this garbage? It sounds like a spammer/porn site than an official payment system! Are they federally insured? Do they have outstanding customer service? Do we feel safe giving these companies our credit cards?

What happened to good old CASH and money order?

eBay to Expand Allowed Payment Services in 2009

by: pay-enemy blows!

Sat Aug 30 18:38:11 2008

To the guy above - I'm with you - who the hell are these people/service's? No one in the good old USA has heard of them that I'm aware of, and surely no one's going to trust giving them their bank/credit info. What does it matter anyway - I mean, all they are is another form of payenemy (aka - paypal) and/or a form of credit card acceptance which I'm not inclined to accept by order of and the enforcement of the Communist Soviet Union of ebay!

eBay to Expand Allowed Payment Services in 2009

by: sam

Sat Aug 30 19:53:30 2008

in response to two comments above: for ebays its a win-win situation.
eBay can say they are expanding allowable payment services. The fact that most of these allowed payment services are virtually unheard of &/or or more expensive to use, doesn't bother them because it just means more people will use Pay Pal, which makes them money. Google checkout is not allowed, probably because it's got a chance of taking payments away from Pay Pal.

eBay to Expand Allowed Payment Services in 2009

by: WindsorBear

Sat Aug 30 20:29:19 2008

The only one I am familiar with is Checkfree.com. I have used them for several years to pay bills online. I've never had any problem with them. Just surprised to see them getting hooked up with eBay. I hope they know what they are getting into.

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