Tuesday, May 13, 2008

eBay Tries Out PayPal Only In Australia

eBay logoeBay Australia is laying down the law with payments, its PayPal or nothing!

Starting June 17th eBay plans to institute a new payment arrangement that would do away with direct deposits, personal cheques or money orders to purchase items - all in the name of enhanced security. Essentially this move forces all of its Australian users to use PayPal, a move that has angered users and prompted antitrust scrutiny.

Many critics think that the move in Australian is a precursor for a global move. "It's a test case," Ina Steiner, editor of Auctionbytes.com, told the Mercury News. "I'm sure they're very much considering rolling it out to other countries."

eBay is denying the claims that it might try the same approach here in the states. "In the U.S., we are not mulling, planning, or otherwise seriously considering a move to PayPal-only," wrote spokesman Usher Lieberman on the company's eBay Ink blog. "There are U.S. market-specific reasons why PayPal-only is something we simply cannot do in the U.S."

However nothing has been mentioned of them not trying to do the same thing in other countries.

If you read eBay's accepted payments policy you'll notice they've already made provisions to disallow any forms of online payments other than PayPal.

Not permitted on eBay.com
"Payment through online payment methods not specifically permitted in this policy."

It would looks as though eBay is trying to place a strangle hold on its buyers and sellers all in the name of "security".

eBay says it wants to reduce disputes and restore trust in its marketplace with the PayPal-only plan. Because eBay and PayPal can share information on each transaction, eBay says use of PayPal allows it to stop fraud more efficiently than outside payment services.

How it plans to do so is a mystery, especially considering the high numbers of fraud that current occur with eBay and PayPal both.

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