eBay Payment Policy May Eliminate Deadbeats

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

January 09, 2009

eBay Payment Policy May Eliminate Deadbeats

By: Ina Steiner

Fri Jan 9 2009 09:25:20

eBay is making changes to its payment flow that will ultimately force buyers to enter payment information through its checkout system. It looks like the end of the deadbeat buyer when the changes are rolled out completely later in the year, since eBay would know automatically if a buyer has not paid a seller.

While it may look like the significant news in today's eBay announcement was the addition of PayMate and Moneybookers into eBay's Accepted Payments Policy, the big news is that sellers with their own merchant credit-card accounts will have to integrate with eBay's checkout through its Payflow Gateway.

ProPay is currently the only third-party system integrated with eBay's checkout system. When buyers choose to pay via ProPay from sellers who offer it as a payment method, the buyer is taken to a secure ProPay page during the checkout process where they actually enter their credit card information. eBay sends all the information necessary for ProPay to process the transaction on behalf of the seller in a seamless process.

The significance of these changes is that eBay can force buyers to pay immediately upon checkout - even if the merchant has their own credit-card merchant account.

Further thoughts: What happens in an auction situation? Ed at the BuildaSkill blog noticed that eBay's Griff had revealed in an interview that eBay would, as part of an effort to eliminate the unpaid items problem, automatically take money from the highest bidder's account or credit card and put it into the seller's account (for auction format listings). The revelation drew mixed reactions from sellers on the eBay discussion board.

It looks like it will take some time for these changes to roll out - the gateway won't be available until March, and eBay still allows third-party vendors to offer their own checkout system, though it already told them in June it would be doing away with them. More on this in tomorrow's Newsflash newsletter. (updated on 1/9/08)

Comments (48) | Permalink

Readers Comments

eBay Payment Policy May Eliminate Deadbeats

by: CHAIRMAN

Fri Jan 9 01:44:57 2009

Well its great news that the lords of feebay now allow Moneybookers to this new eBay payment policy.

eBay Payment Policy May Eliminate Deadbeats

by: Patricia

Fri Jan 9 01:59:38 2009

''The significance of these changes is that eBay can force buyers to pay immediately upon checkout - even if the merchant has their own credit-card merchant account. (What happens in an auction situation?)''

I would not be at all surprised if Ebay doesn't direct this into a central pay system. Where they collect all the funds and then pay their sellers on a monthly basis. They're arrogant enough to try it and a lot of sellers are desperate enough to still list with them even if that's what they do!

eBay Payment Policy May Eliminate Deadbeats

by: eBay is Scum

Fri Jan 9 05:25:17 2009

1. We will still accept & REQUEST money orders (us only) and Checks (us only) and US cash as many many buyers overseas have no problem sending us cash securely over the pond.
2. We have noticed a sharp increase in name/address DIFFERENT from what eBay says buyer's name/address is and what Paypal states buyer/address. For OUR protection (not the buyers) we will ship to the paypal address.
3. ANY question on our shipping charges or postal time places a potentional bad buyer on a BLOCKED list FOREVER.

Look, ebay is anti-seller, everyone knows that. You have to do what you can to neutralize their evil plans.

eBay Payment Policy May Eliminate Deadbeats

by: Jeff S

Fri Jan 9 06:56:46 2009

Can Governor Whitman do anything about this?

eBay Payment Policy May Eliminate Deadbeats

by: seller and buyer

Fri Jan 9 08:15:54 2009

I am both a seller and buyer. The item I was interested in was involved in propay. But I was concerned with the integrity of the seller who has many negs.

In this instance I would have preferred paypal. Because I wouldn't have to handle disputes on my own through my credt card comapny

I thought I would go propay because the seller has no new negs. But when I looked closer at his feedback, I saw his positives were really negatives.

The green positives said they never received the item or received the wrong item.

eBay Payment Policy May Eliminate Deadbeats

by: Greg

Fri Jan 9 09:44:39 2009

Ina, the comments you refer to on the discussion boards have grown remarkably in size from when this blog was posted. Most interstingly, Griff himself has posted, once again trying to "clarify" his statement. It's become a very large thread but a good read.

eBay Payment Policy May Eliminate Deadbeats

by: dan

Fri Jan 9 09:46:27 2009

a credit card is the safest payment method. As far as Governor Whitman is concerned, her value of security over democracy is a misguided tyrant philosophy. The people already voted in the national election to go in another direction.

eBay Payment Policy May Eliminate Deadbeats

by: Al G

Fri Jan 9 09:47:08 2009

If you will notice, the new ''Items I've Sold'' layout does NOT have the buyer's e-mail address. No mention was made other than you must now use the new MyEbay [currently beta] in a few weeks. Now you will be forced to use the F***ED up eBay message system where big brother can watch & comment.

eBay Payment Policy May Eliminate Deadbeats

by: Al G

Fri Jan 9 09:48:22 2009

Oh, yes, AMAZON removed the eMail link to customers awhile ago. So much for direct communication.

eBay Payment Policy May Eliminate Deadbeats

by: buyers/ebay DO NOT READ

Fri Jan 9 10:30:05 2009

We list pretty clearly NO COMBINING shipping & handling charges because of ...outrageous postal fees, ebay and paypal fees, etc..yet almost every day someone ASKS if THEY CAN have a discount on the shipping charges. We always say no, and if they persist, we block them. So, do you really think if we can state...because ebay and paypal fees are so high...for almost NINE years now, they will look at every single listing that states Checks, Money Orders are ok...i don't think so. Could be just another republican type scare tactic. we are willing to take a chance and leave it in.

eBay Payment Policy May Eliminate Deadbeats

by: Bob

Fri Jan 9 10:30:53 2009

While still an eBay seller (well before Meg left), instant direct payment and/or required verified approved credit card on file for buyers for each item bid on was one of my crazy ideas that didn't seem to resonate well with other sellers and something that management apparently didn't like either. Before leaving eBay our UID rate was approaching 15% with the average always above 10%. Of course, if Paypal is going to hold your money for three weeks, what does it really matter if the payment is immediate all of the time?

I'm sure buyers who want to will find a loophole if any such plan is put in place. Heck, the current Paypal account that I use for buying purposes is set up under a fictitious name, with a totally fictitious address, linked to the savings account of my four year old.

Here's a question for all of you who continue to sell on eBay...If your spouse, girlfriend or boyfriend had a personality like eBay, would you still be with them? eBay is like a bipolar, schizoid, unpredictable alcoholic that is nothing like it was when you met it, and it causes you to walk into doors on a regular basis, shows you no affection, won't talk to you, and won't even listen when you speak - plus you are paying for the privilege of being in the wonderful relationship.

eBay Payment Policy May Eliminate Deadbeats

by: unaware

Fri Jan 9 10:51:14 2009

Bob, I love your analogy..... yes eBay is like a ''bipolar, schizoid, unpredictable alcoholic'' WELL SAID!

eBay Payment Policy May Eliminate Deadbeats

by: Daisy

Fri Jan 9 11:11:41 2009

Ebay is in the unique position of still being practically the only game in town for small sellers of unique items. They arrogantly lord this over our heads, not with words, but with their actions.

I would NEVER do business with any company nor person that treats me like Ebay does. It's nearly abusive. People say, "But you have a choice. You can walk away." That's just not true. The small seller has to put up with Ebay to make their income, while branching out to the new venues that just don't have the feet yet to allow us to leave completely. Oh, but when they do...

Things well change. If Ebay keeps up their way of doing business, they're going to wake up one day to find everyone has moved on. Moved on to a place where you're treated as a valued customer.

eBay Payment Policy May Eliminate Deadbeats

by: Ebayvet

Fri Jan 9 11:12:52 2009

One of my ebay accounts (because the inventory is cross posted in different venues) has a no combined shipping policy as well. It says so very clearly right at the top of each listing, and yes, I get emails too asking for combined shipping. I just ignore them now completely, and I probably have about 1 out of every 500 customers who email me a second time - so I believe ignoring those are fine because I don't think the customers keep track of who they ask questions from anyway.

As far as eliminating deadbeats, that sounds good to me. That account with no combined shipping is all fixed priced items, and I require immediate payment with paypal. It is really nice to know when something sells, I am going to get paid. That is far from the case on my other ebay account that does not require immediate payment, and I do auctions as well as store and fixed price.

eBay Payment Policy May Eliminate Deadbeats

by: RD

Fri Jan 9 11:25:49 2009

So... the spin doc's over at e-betray are hard at work I see... now they're trying to throw up a smoke screen for their paypal extortion by telling you they're doing you (the seller) a favor by eliminating NPBs... surely they jest... really just how stupid do they think we are?

I can hardly wait to watch them crash and burn :)

@Jeff S... Governor NitWhit canNOT happen. Total worst nightmare for California! Freaking Minnie Mouse could've run ebay on auto pilot, instead of running them into the ground like that moron did!

@Bob you forgot abusive crackhead... lol :D

eBay Payment Policy May Eliminate Deadbeats

by: Marvin

Fri Jan 9 11:42:34 2009

I see no evidence that oBay is moving towards the Amazon model regardless of the payment methods. Amazon provides some protection for sellers whereas oBay and PayPal still keep their fraud protection policies in place. Accepting the precept that some level of fraud is okay is just plain wrong.

eBay Payment Policy May Eliminate Deadbeats

by: Don

Fri Jan 9 11:59:10 2009

This should get interesting.

Hopefully eBay will build the system in such a manner that when the buyer signs in to eBay any transactions they make will automatically be charged to Paypal or their credit card. Otherwise auction items will probably take a major hit. I suspect this may also mean the end of most sniping software.

On fixed price items I don't see any major impact one way or the other unless the implementation is so clumsy it drives away buyers.

I would prefer that eBay leave well enough alone. I have very few dead beat buyers and I don't need eBay's help in preventing them. As with most of the eBay ''improvements'' I have seen in the last few years I suspect this one will just cost me money.

eBay Payment Policy May Eliminate Deadbeats

by: voodoo

Fri Jan 9 12:09:10 2009

YEP that works. No buyers No Ebay.

Excuse me while I go throw up.

eBay Payment Policy May Eliminate Deadbeats

by: Randy Smythe

Fri Jan 9 12:15:33 2009

This change also opens the door for eBay to take FVF right out of each transaction and give the seller a net amount.

As long as they have listing fees they will probably need to still have monthly billing, but this would allow them to get the FVF at the time of payment.

eBay Payment Policy May Eliminate Deadbeats

by: orangejumpsuits4eBay

Fri Jan 9 12:21:02 2009

@Bob. Perfect analogy. PS: What type of address do you use for your little ones bank statements? I am a quick learner today.

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