eBay To Disallow Checks and Money Orders In US 412
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.
Sears-Discover debacle anyone? (Score:5, Informative)
Many may not remember, but when Sears first came out with the Discover card, they stopped accepting Visa/Mastercard.
Sales dropped, and it was the beginning of the end for Sears.
Those who don't study history....
Don't use paypal (Score:3, Informative)
If payment options are ever limited to Paypal, then I won't be using EBay.
Little known fact: Paypal "reserves the right" to reverse a transaction without permission from the seller. That's what backs their money-back guarantee.
I sold an item which went to a woman in CA, it arrived damaged in transit. I worked on processing the insurance claim, but she didn't want to wait, and made a claim to paypal. They reversed the transaction, she shipped the item back, and received money from them which they billed me for. I refused to pay, so they kept money from another transaction that I made during this time.
So now I have a broken item that's been to CA and back, I can't make an insurance claim since it's since been shipped again by a different carrier, and paypal is sending me to collections since I refuse to pay for a return they authorized, not me.
Re:Actually they are right (Score:4, Informative)
I actually received my money back (Paypal called it a "reversal") by filing a dispute against a deadbeat eBay seller through Paypal. I was really surprised, since the one or two other times I've had disputes with sellers, Paypal ALWAYS ruled against me.
Competition? (Score:2, Informative)
It's been decades since we've had a true competitive market in the US. Agriculture was the last to go.
The tipping point? (Score:5, Informative)
Right now, eBay is the auction place. Sellers want to sell on eBay because that's where all the buyers are. Buyers want to buy on eBay because that's where all the sellers are.
At some point, both buyers and sellers could get sufficiently upset with eBay as to take their business elsewhere. Are we there yet?
And if we are, what is the most likely competitor?
http://online-auction-sites.toptenreviews.com/ [toptenreviews.com]
One more thought: if the current situation is close to the tipping point, then all it would take is one single disturbance to cause a mass exodus from eBay to the new site. For example, if Google were to buy one of eBay's top competitors, and publicly announce Google Auctions, and announce that they would charge less in fees and allow checks and postal money orders... eBay could lose everything in the blink of an eye.
Remember how fast Xfree86 was dumped in favor of X.org? Dissatisfaction with the Xfree86 project was already high, and then they announced one more petty annoying license change, and *boom*, they were done. I wonder if this could happen with eBay.
http://www.internetnews.com/dev-news/article.php/3338031 [internetnews.com]
steveha
protection (Score:4, Informative)
Besides if your dealing on the net the protection of a CC is a must
CCs only protect buyers not sellers. A buyer can always dispute a charge on their credit card, which is a good thing as credit cards or their numbers can be stolen. But it's bad for sellers, they may not get paid. And if they have too many chargebacks their merchant account [merchantexpress.com] can be canceled. As for paying with checks or money orders, banks will stop payments on checks and the buyer can get a refund with their money order receipt.
Falcon
Re:Corrections (Score:5, Informative)
Paypal acts like a payment processor, not a bank. They don't have a bank charter among other things. Payment processing regulation is very lax.
They allow you to move money from your bank account to your paypal account.
They allow you to elect to make payments from your paypal "balance"
They offer a "debit card" that draws from your paypal "balance".
If someone sends you funds, it goes towards this balance.
If they put a hold on your account, they deny you access to this "balance" that is your money.
They sure sound a lot like a bank to me.
I suggest calling your legislators, writing them, etc, to ask for tougher regulation and better regulatory oversight for the operations of companies like PayPal.
Re:Actually they are right (Score:5, Informative)
It is - in Europe Paypal is a licensed, regulated bank based in Luxembourg.
Re:Actually they are right (Score:3, Informative)
eBay now restricts shipping and handling fees to a certain amount depending on the category.
feeBay indeed.
Re:Corrections (Score:5, Informative)
Anyone notice the other changes? (Score:2, Informative)
http://pages.ebay.com/sell/August2008Update/OtherFAQ/#3 [ebay.com]
Fixed rate shipping on media (cd's, books, dvd's, etc), while it sounds good, in many cases their maximum allowed shipping and handling cost is several dollars less than the USPS flat rate box which is currently the cheapest way to ship. Their "faq" basically suggests that sellers just raise their prices. This leaves book rate as the only viable option, but try explaining to customers that they mey not get thier item for a month.
IMHO this is nothing more than a further attempt to deter the mom and pop businesses they have been so eager to push out over the past couple years.
If you read further you will also find they are eventually going to get rid of 3rd party checkout as well so regarless of whether you have your own credit card processing you will have to use ebay checkout.
DSR's (Detailed Seller Ratings) are required at 4.3 or higher..which is great, but it has to be that way in the last 30 days...so you have to constantly sell things in order to keep it maintained. Bought a new laptop and want to sell the old one? You are no longer welcome at ebay and have to find a consigner.
Ebay has forgotten who made it what it is, I dont know why they feel the need to be Amazon (actually amazon is more welcoming to the small seller) but I have a feeling this may finally be the push over the edge the rest of the old timers needed to bail on ebay and find something else to do.
Re:Sears-Discover debacle anyone? (Score:3, Informative)
In fact I'd put Sears as the only brick and mortar retailer I actually trust today...
...and wouldn't think of buying hand tools anywhere else. Can't tell you how many ratchets I've gone through over the years.
Re:Actually they are right (Score:4, Informative)
I doubt you'd find many people that would argue that eBay is not a monopoly in the online auction area, and the rules change when you're a monopoly for a good reason. You're specifically not allowed to use a monopoly in one area (online auction provider) to kill competition in another (online payment processing).
Re:Corrections (Score:1, Informative)
The main responsibility of a bank is the production of money through fractional reserve banking, and they are so well regulated because of that. Payment processing accounts for a very small amount of the income of the banks. The government only cares about regulating the total amount of USD, not the shuttling around of funds between folks.
Re:Corrections (Score:4, Informative)
I think the point of this article is that eBay is rapidly removing payment options in order to force people to use their unregulated banking service.
If you'll recall, un- or under-regulated banking practices led to the current mess.
I think a little scrutiny is warranted. And if warranted upon scrutiny, action. Us little guys don't get much of a voice anymore if government doesn't do the shouting.
Re:Corrections (Score:2, Informative)
In Europe, eBay _HAS_ bank status. Based in Luxembourg IIRC.
Re:Psst. buddy (Score:2, Informative)
Re:Corrections (Score:4, Informative)
Paypal acts like a payment processor, not a bank. They don't have a bank charter among other things. ...
Yes they do, the UK FSA forced them to become a money issuer in 2004 and to escape FSA ruling in 2007 they managed to get a banking license issued [finextra.com] by the Commission de Surveillance du Secteur Financier (CSSF) [public.lu] in Luxembourg - under the name eBay SA. The European Paypal HQ is therefore now in Luxemburg.
The problem with this is that Luxemburg has well known lax regulations for banking and is a well known tax haven - that has seriously pissed off the German government for harbouring criminals and tax evaders. Also, they have strict banking secrecy laws so that Paypal can operate autonomously reporting to no-one.