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EBay Abandons Plans For PayPal Monopoly
Posted by
timothy
on Thu Jul 03, 2008 09:24 PM
from the single-source-is-always-risky dept.
from the single-source-is-always-risky dept.
An anonymous reader writes "eBay's has lost its fight to ban all payment methods except PayPal.
When Paypal originally announced the scheme it was to be global,
but they began with a dry run in Australia to test the reaction of government and consumer authorities.
In the public slanging match that followed between eBay and the regulatory ACCC, eBay spammed users claiming it was fighting for 'safety benefits for consumers.' Fortunately the consumers won.
Conceded eBay vice president Simon Smith, 'While we disagree with the ACCC's draft notice, we have decided to withdraw the notification to stop any further confusion and disruption among the eBay community.'
Nevertheless eBay insists PayPal is now always offered as a payment option.
Have big corporations finally learned that they can go too far? More chillingly, if eBay had launched the scheme in America would they have gotten away with it?"
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Technology: eBay Australia Makes PayPal Mandatory 390 comments
An anonymous reader writes "Australian press are reporting that eBay is using Australia as a guinea pig to trial a new policy where all other modes of payment are barred except for PayPal. If successful, eBay will roll it out to other markets."
Submission: eBay Abandons Plans for PayPal Monopoly by Anonymous Coward
[+]
eBay To Disallow Checks and Money Orders In US 412 comments
Sir_Kurt writes "In eBay's latest FAQ, they explain that sellers (for the good of the buyers) will no longer be allowed to accept checks or money orders as payment. They can take electronic payments only. So, will Google Checkout, Checkout by Amazon or Amazon Flexible Payment be allowed? No, says eBay: 'Google's and Amazon's products and services compete with eBay on a number of levels, so we are not going to allow them on eBay.' Options are limited to PayPal, ProPay, direct credit payments to the seller, and 'payment upon pickup.' But remember, this is for our own good!"
eBay ran into trouble earlier this year for trying to restrict payment options.
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Paypal only (Score:4, Interesting)
Then I would leave e-bay, after being there since 1996
Re:Paypal only (Score:5, Informative)
Parent
Re:Paypal only (Score:5, Interesting)
Well, the purpose of negative feedback is to stop being getting screwed over by bad actors.
There are several ways that a buyer can scam a seller. They can, for example, claim that the item is not as described, and then return something else (e.g. buying a new diamond ring and returning a cheap cubic zirconia, or buying a new laptop and returning an old one). eBay and PayPal will honour proof of postage as "proof" that the correct item was returned, even if it wasn't.
In those situations, negative feedback was the only recourse that a scammed seller had.
Parent
Re:Paypal only (Score:4, Interesting)
Parent
Honest buyers? Are you kidding? (Score:4, Informative)
It discouraged honesty from buyers.
Honesty from buyers? My guess is you haven't sold a significant amount of stuff on eBay. I have over 10,000 feedbacks with a 99.7% positive rating and have seen just about every buyer scam in the book first hand. I'm an optimistic person by nature but when you've had people try to burn you as much as I have you cease being so optimistic about the "honesty from buyers". Most buyers are fine but a very significant percentage are not and making it impossible for sellers to respond to the bad ones does not help anyone.
The vast majority of feedbacks are either content free ("A+++++ BEST SELLER EVER!!!!") or simply rude responses from people who couldn't be bothered to resolve a problem civilly. I particularly love getting negative feedback from buyers who can't be bothered to actually read the auction terms. Happens ALL the time.
While I'll be the first to admit there are a lot of scummy sellers out there there are at least as many scummy buyers. eBay's change in policy is an attempt to assure buyers that eBay is safe (it isn't) so that they don't take their business elsewhere.
Parent
Re: (Score:3, Insightful)
Wait, so eBay takes proof of shipment that you weren't scammed out of a diamond ring, and you feel that is 100% ok, as long as you can leave negative feedback? I think that the fact that they take shipment records as "proof" of contents of the package would be the issue, as opposed to negative feedback that was overwhelming used as blackmail. I guess blackmail was perfectly fine, as long as it gave you a chance to las
Why negative feedback? (Score:3, Interesting)
Can you explain the use of negative feedback against buyers?
Re:Paypal only (Score:5, Insightful)
I do think that the buyer was fair to give you negative feedback.
He had just won the auction, and you said that you decided that you dont want to sell it after all.
Posting a auction requires you to accept a legal agreement which outlines that.
Parent
Re: (Score:3, Insightful)
You should have sold what you listed.
It's people like you who do stupid things that give us sellers a bad name.
Re:Paypal only (Score:4, Insightful)
Parent
Re:Paypal only (Score:5, Informative)
Then I would leave e-bay, after being there since 1996
Amen. I personally have experienced the famous Paypal shaft. Froze my account for no reason and blackholed all my communications, just like so many other people. When I finally did get access to my money again after many months of frustration and runaround, I closed the account I was stupid enough to give them access to and left Paypal for good.
Paypal is an unregulated scam.
Parent
A dumb end to a dumb arguement. (Score:3, Insightful)
EBay is a medium to connect buyers and sellers, nothing more. They can't regulate the actual terms of a transaction. All the parties have to do is accept "cash/check" as the method of payment and then go to Google/Western Union/whathaveyou and send the payment that way. Seller gets money via "unapproved" method. What's eBay going to do? Stop him from shipping the item?
This was a non-issue from the start.
fp?
Re:A dumb end to a dumb arguement. (Score:4, Insightful)
That doesn't work when the only option presented to users is paypal, the eBay system wont let you finalise auctions until PayPal processing has occurred and eBay start removing listings that don't conform.
And no, you didn't get first post you idiot.
Parent
Re: (Score:2, Insightful)
And do you think sellers would put up with a website telling them what methods of payment they're allowed to accept? They don't need eBay to artificially limit their customer base.
There were no replies when I started typing mine, and the story was not on the fron
Re:A dumb end to a dumb arguement. (Score:5, Insightful)
EBay is a medium to connect buyers and sellers, nothing more.
That's the mantra eBay has often chanted (usually in the context of somebody wanting to hold them responsible for some fraud that has been perpetrated), but the fact is that they have gradually done everything they can over the years to insert themselves between buyer and seller, and to be directly involved in every phase of the transaction. They have already previously tried to ban or at least discourage other forms of payment -- this is nothing new. They tried several years ago to force all sellers to complete transactions through eBay's own "Checkout" system, and only backed down after mass bitching by some very high volume sellers. They try to intimidate you into using only eBay's own on-site message system to contact bidders instead of e-mailing them directly.
The problem with these measures is, while still technically "optional," eBay does nothing to encourage such "rogue" behavior, and many (maybe most) users, both sellers and bidders, who have come aboard after these "options" were implemented are under the impression that they are mandatory because eBay pushes them constantly while burying the more seller-centric options in obscurity. Consequently, many bidders no longer understand the "eBay is only a venue" schtick, and believe that they are dealing directly with eBay. After all, when your messages all come through the eBay site, and you pay by clicking on buttons on the eBay site, you lose track of the fact that there are thousands of individual sellers who are the actual merchants. I've had problems with more than a few bidders who refuse to answer my e-mails or to pay me directly instead of through eBay's Checkout because they think it's not "official" otherwise, and that I am trying to pull some sort of scam on them.
Parent
Re: (Score:3, Informative)
I have to sympathize at least a little with those users. I recently bought something on ebay, and I have no less than 7 emails about it in my in-box, from 5 different addresses.
That doesn't even make sense, and assuming you aren't exaggerating (no one on Slashdot ever does that), clearly this is a seller who is at the very least disorganized. There are thousands of sellers on eBay who conduct themselves in a very organized, professional manner. When eBay was still relatively new (and less obtrusive), it was merely a means for such sellers, small and large, to have a well-publicized venue in which to conduct business, without having to go through the expense and bother of maintaini
Re: (Score:3, Informative)
Actually it is very easy to rip someone off using loopholes in paypal's system.
I can place an auction for an item which i claim to be in the US, and when you win it i can ship it from the US and make you submit payment to an email address via paypal, where the account is actually registered in australia (tho you obviously cant see this based purely on the email address).
Then i send you a brick or some other heavy junk from somewhere in the US...
You receive it, get real angry and file a paypal claim...
I can
Re:A dumb end to a dumb arguement. (Score:4, Insightful)
B - This was a non-issue from the start.
Dream on...
A - Ebay is a money making machine and de-facto monopoly on online auctions.
B - Ebay owns PayPal - their auction interfaces are strongly interlinked and incentives in PayPal "Buyer protection" are predominanty shown on every(?) auction.
Look at 10 auctions and count non-PayPal (quick - CC) payments accepted - I found NONE!
They can easily effort dropping enforcement of PayPal - they get it anyway.
Maybe it was dumb to try it in that manner.
Parent
Re:A dumb end to a dumb arguement. (Score:4, Insightful)
EBay is a medium to connect buyers and sellers, nothing more.
EBay is a way of profiting from a sale without actually selling anyting.
Parent
Duh, Yea! (Score:4, Insightful)
Yes:P There aren't any wildly accepted payment processors you can go with with ebay. While I don't like the arbitrary way Paypal handles accounts, its hard for me to go back to mailing a check or money order with its convenience. I doubt enough Americans would care one way or the other sadly.
Just cancel your eBay account (Score:5, Informative)
I quit eBay (Canada) the day that they forced Canadian sellers to accept Paypal. Also, the fact that they'll withhold payments to me for 21 days without paying interest didn't go over so well either.
Shame to let all that good feedback go but I won't bend over for corporate raping.
Re:Just cancel your eBay account (Score:4, Interesting)
I have sold a lot of stuff on Ebay too, but I quit in favor of Craigslist. This Ebay maneuver was just a calculated way for them to muscle sellers into giving Ebay a bigger piece of the pie. It's the 'ol "gain monopoly then exploit" plan. There needs to be a name for it. There probably is but I can't think of it...
Also here's the obligatory grammar gripe. "Have big corporations finally learned that they can go to far." Where is this "far" place and how do I get there?
Parent
Re:Just cancel your eBay account (Score:4, Funny)
> Also here's the obligatory grammar gripe. "Have big corporations finally learned that they can go to far." Where is this "far" place and how do I get there?
"A. You can NEVER go to far."
"B. If I'm gonna get busted, it is NOT going to be by a company like eBay!"
(see also: "Goto-far Statement Considered Harmful")
Parent
As an Australian (Score:5, Interesting)
This was about monopoly and eBay getting paid twice per transaction (more money for them). They spammed me MANY times trying to say "this is for your own good". I had customer representatives hassling me all the time when I requested my account be closed and they were going "you can sign up to paypal" and I said "I dont want a paypal account" and after 5 repeated attempts, they still havent shut it down but say "its in the process of being shut down"
A few questions (Score:4, Insightful)
I understand that the real aversion to this plan comes from the "mandatory" part, but why is PayPal a bad thing? Personally, I like having a middleman shield my credit card information from the seller, and I like some of the other protections that using PayPal can afford.
And, frankly, what's so wrong about having a specific method of payment used throughout a website? If eBay had their own internal payment system identical in every way to PayPal, would there be as much fervor?
Re:A few questions (Score:4, Funny)
Parent
Re:A few questions (Score:5, Informative)
A specific method of payment is not the issue here. The issue is that eBay owns PayPal, making the whole "we're doing this to protect YOU" argument rather spurious at best.
eBay takes a commission on each item sold through their site. Paypal takes a chunk of every transaction that goes through. So it works like this. Person A puts up an item for sale. Person B is the winning bidder. Person A now owes eBay X amount of money based on the final price of the item. This comes out of what they receive in payment from Person B. Person B sends the money through PayPal, which takes a percentage of the transaction, Y. If the item sold for Z dollars, person A will only ever see Z-(X+Y). Essentially, eBay gets paid twice for the same auction. THAT is where people are getting (rightfully) peeved.
Parent
Re: (Score:2)
A specific method of payment is not the issue here.
Essentially, eBay gets paid twice for the same auction. THAT is where people are getting (rightfully) peeved.
Well I obviously can't speak for everyone, but I'm more worried about the former rather than the latter. It hinders competition, resulting in higher prices.
Re:A few questions (Score:5, Informative)
Parent
Re:A few questions (Score:4, Interesting)
I have a separate bank account with "totally free checking" at a local bank and only use it for Paypal. Nothing else. When I need to use Paypal, I deposit money in that account by check from my other bank or using their ATM out front and walk in and deposit it. If some of the horror stories I hear about Palpal freezing accounts or people being scammed happen to me, I will only loose access to a couple of dollars.
Parent
Re:A few questions (Score:5, Insightful)
Parent
Paypal monopoly in America (Score:3, Interesting)
Ebay auctions are not a necessity of life (Score:5, Insightful)
> More chillingly, if eBay had launched the scheme in America would they have got away
> with it?
Probably, because while people like you would have whined and moaned about the evil of it all you would have kept right on doing business with them. You recite high-sounding phrases about your rights, but you value convenience more.
Try to get a grip. There are lots of other ways to buy and sell things. If Ebay management wants to act like a pack of fools it's between them and their shareholders. They need customers more than the customers need them.
I don't get it... (Score:3, Interesting)
Why is there no competing online fleamarket to eBay? We all know eBay sucks ass! I want my competition!
Yes, yes, I know, build it and they will come...
In the US... (Score:5, Insightful)
The outright banning was perhaps a red-herring, i.e. an "It can be worse" program to distract people from other anti-competitive measures they were taking at the same time.
People will remember only that they were considering to ban the competitors outright, they have withdrawn that. Hence, they have succeeded. The public (the news media) will now ignore the more important changes -- the new requirement that paypal be offered on all listings.
Think of the auction bidding strategy that involves conspiracy: the highest bidder will confer with a third party to "accidentally" make an obvious bidding error, like bidding 100000 on a $100 item. The high-bidding conspirator will withdraw their bid (based on it being an obvious error), with the second-highest bidder getting the item for a ridiculously low price.
Banning non-paypal services outright is the distracting (erroneous bid). Making it mandatory to offer a Paypal option on all listings is the lower bid that still gets the item (eBay merchants' payment processing business).
They've also basically gotten away with it by banning their potential biggest competitor (Google) early.
Justifications are only to save face. The real reason they want to ban new non-Paypal services should be obvious.
By having pay-by-PayPal-through-eBay's-site required to be an option for all actions, the other payment methods will begin to be marginalized.
Because they will be less convenient.
By "not banning them" eBay will pretend to be placating them and allowing competition, where in fact, it will be harder for competitors to compete than before.
Now by withdrawing their "ban on alternate payment services", many people have by now forgotten or won't notice other changes...
They'll think eBay learned their lesson and will play nice, when it couldn't be farther from the truth.
Australia is a good common ground. (Score:5, Insightful)
Australian law lays between the consumer-driven EU laws and the company driven-US laws.
The ACCC is an independent government body specifically designed to prevent US-style corporate bastardisation. It's significantly resistant to US-style lobbying and has the power to stop company mergers, monitor and investigate pricing, regulate telecommunications companies, make unfair company policies illegal to enforce and works via a complaint system. (Meaning that individuals have the power to enact a government body to look into unreasonable practices.)
The ACCC is the reason why the iPhone is available on all competent Australian telecoms, why banks had to pass on savings to consumers and why ebay couldn't impose their paypal policy.
The smaller nature of the Australian population allows for this kind of organisation to exist, so I'm not confident this would scale without corruption to larger countries.(There is also an organisation which deals specifically with corruption.)
As with any system, there is an appeals process, many companies don't take this route (such as ebay) as the ACCC are usually just enforcing the existing fair trading & trade practices laws.
Re: (Score:2)
Actually the iPhone is only available on three networks, albeit the three biggest networks - Telstra, Optus and Vodafone.
Ironically it's not available on the "3" network".
Re:Australia is a good common ground. (Score:4, Informative)
Technically, not correct. It is true that only three networks are offering the iPhone. However, as per ACCC policy, they have to offer a way to buy the iPhone by itself, unlocked and able to be used on any network. For example, Optus is selling the iPhone on the prepaid plans and offers an unlocking service (at a cost - just factor that into the price if you don't want to use Optus).
The ACCC could not force Apple to offer the iPhone to multiple networks; they could have just approached, say, Telstra. However, the ACCC could force Telstra to offer it unlocked, even if they were the only reseller.
My guess is that the terms & conditions offered by Apple to sell the iPhone weren't attractive enough for the 2nd tier providers (the ones who don't actually have their own networks fully in place; 3 [three.com.au] is sort of in-between; they have their own network covering major urban areas, but fallback to the Telstra network elsewhere). Of course, these terms & conditions are secret, so unless you're a major telco executive, there's no way to know.
Parent
All I can say is... (Score:5, Insightful)
It feels great to be an Australian.
A reason to avoid PayPal (Score:2)
Gotten away with what? (Score:2, Insightful)
Obvious (Score:3, Insightful)
Depends on whether they bribed enough of the right people or not. Simple and obvious to anyone with knowledge of our system.
Onward and Upward.. (Score:2)
Umm.. it's not a freaking charity people ... (Score:4, Insightful)
If I run a grocery store, I'm allowed to say what kinds of checks I'll take.
If I run a coffee shop, I get to decide who'se posters stay on the bulletin board.
If I run an actual, physical auction house, I'm allowed to say "all payments run through the house." In fact that's what all physical auction houses DO say.
There's nothing "free as in speech" about a service like eBay. It's a commercial enterprise. They could demand payment in chickens and the ONLY right anyone has is to simply say no and not use them.
Re: (Score:3, Informative)
Australia doesn't have free speech anyway, except that hinted at in the Magna Carta and common law. Still, there is a freedom at work, it's free as free market, in consumers expectation that a competitive, free and open market exists. We have a Trade Practices act that defines most of the behaviour required, play by the rules or face stiff penalties.
The ACCC acts in the interest of this competitive free market by protecting the consumer from abusive monopolies and similar extortion. Restricting ebays abilit
I prefer PayPal (Score:3, Interesting)
I am a European eBay buyer. From the posts in this thread, this seems to put me in a firm minority on Slahsdot. Anyway; I much prefer PayPal to bank transfer because in case of fraudolent, forged or non working product (or simply if the item was never sent), I have an avenue for recourse. With wire transfers I have no way to recover my money.
Also, in case of overseas payments, PayPal is _way_ cheaper than wire transfer.
Just my 2 cents (or a Euro). Resume your cheering.
"Fighting for" (Score:3, Insightful)
But the consumers decided they wanted to keep them.
Still happening - just yesterday, in the UK (Score:3, Interesting)
I posted an MP3 player for sale. I was told I must offer PayPal and ONLY PayPal.
See here for screen grab:
http://www.itwriting.com/blog/708-ebay-insisting-on-paypal-only-in-the-uk.html [itwriting.com]
Tim
Paypal Doesn't Protect You From Scammers. (Score:3, Insightful)
I only use PayPal and will not deal with any seller/buyer that does not accept PayPal. I don't trust 'the check is in the mail', or 'I will wire the money to you tomorrow'. I am especially wary of sellers that offer me a discount if I pay them direct to avoid additional fees. By using PayPal, every step of the transaction is recorded and logged for reference.
The one time I was warned that a seller had been removed from eBay due to suspicious sales -- and I had already completed the sale -- I filed with eBay and PayPal. I got nearly all of my money back. The seller had gotten to his bank account and removed some of the money first.
Don't like the fees? Then charge more for your auction or go to another auction site.
I'm sorry to say paypal doesn't protect you from scammers. Read the fine print. Trust me, i was defrauded for 500 bucks by a seller who had 1000 positive feedback ratio (all VERY well astroturfed).
The truth is any service which allows you to use a major credit card will allow you to recover defrauded funds by disputing the charge. Don't make the mistake of thinking PayPal or some other service of its sort actually gives a damn, use your credit card's dispute service like I have since that time (recovering
Re: (Score:3, Interesting)
And I had all the money I paid for a second hand laptop stolen from me because paypal's dispute service took so damn long, and the perp was allowed to close the account.
I had no recourse. Looks like paypal protects nobody then.