Why Paypal as only option for safe method of payment can affect you.

[patsydoolan]

Hi all

I am concerned about the upcoming plan to remove alternatives to Paypal for payment. 

Ebay are proposing to use Paypal only payment as their safe payment of method.

Diminishing any competition by removing Paymate.

Ebay require all sellers to have at least one safe method of payment - either Paypal, Paymate or Credit Card.

Currently Credit Card can be used by using Payflow (Paypal) or Cybersource - Cybersource require 3,000 transactions or more per month.

This makes Cybersource not an option for 99% of mum, dad and regular sellers.

So effectively by removing Paymate, ebay will ensure that Paypal is the only option available to sellers/consumers.

Paypal may change their fees/rules/witholding money rules at any time. 

The ACCC ruled against ebay previously for using Paypal as a monopoly and I would encourage consumers again to lodge a complaint with the ACCC to ensure this doesn't happen again:

https://www.accc.gov.au/contact-us/contact-the-accc/general-enquiry-form

[designers*n*more]

Hi Patsy, where did you learn about this, I didn't know eBay were up to shenanigans again!

[joethenuts]

i see you are a seller its your business why you use paymate, which is more expensive to use than paypal, but surely most and i mean most buyers use paypal. arnt you loosing sales from not having paypal as a paymrent source.

would anybody out there no the % between both companies on ebay.  i am sure some sellers out there who have both can give you a %%  on with those 2 are paid by the buyers.

i am a pick up seller and mine is about 67% cash   33% paypal.

[phorum_junkie*]

The ACCC ruled against ebay previously for using Paypal as a monopoly and I would encourage consumers again to lodge a complaint with the ACCC to ensure this doesn't happen again:

The complaints that were raised were against the ending of non electronic payment methods meaning bank deposit. ACCC did not actually rule against ebay, they merely asked that as they had had so many complaints that ebay continue to allow buyers to use bank deposit which ebay agreed to do.  There are very few buyers who have even heard of Paymate and as their seller protection is nowhere ner as good as Paypal's there are not many sellers who offer it. There are a significant number of buyers who come to the boards asking how they can pay as they did not realise they could not use Paypal.

I can understand ebay no longer wanting to allow Paymate as a recognised payment method as their money back refund policy is linked to Paypal and only applies to items paid for with Paypal so they do not want unhappy buyers who realise that they have no way of getting a refund through ebay.

[digital*ghost]

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@phorum_junkie* wrote:

The ACCC ruled against ebay previously for using Paypal as a monopoly and I would encourage consumers again to lodge a complaint with the ACCC to ensure this doesn't happen again:

The complaints that were raised were against the ending of non electronic payment methods meaning bank deposit. ACCC did not actually rule against ebay, they merely asked that as they had had so many complaints that ebay continue to allow buyers to use bank deposit which ebay agreed to do.  There are very few buyers who have even heard of Paymate and as their seller protection is nowhere ner as good as Paypal's there are not many sellers who offer it. There are a significant number of buyers who come to the boards asking how they can pay as they did not realise they could not use Paypal.

I can understand ebay no longer wanting to allow Paymate as a recognised payment method as their money back refund policy is linked to Paypal and only applies to items paid for with Paypal so they do not want unhappy buyers who realise that they have no way of getting a refund through ebay.

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Sorry PJ, but just about everything in this post is incorrect.

The ACCC didn't ask eBay to do anything, at least, not in the way of doing their buyers a favour by continuing to allow bank deposit. It's more accurate to say eBay backed down when they realised if they pushed for what they wanted (PayPal only), the ACCC would rule against them.

Secondly, the MBG applies to all current safe payment methods, so does indeed extend to Paymate and credit cards - please read the actual policy if you want confirmation of this. 

Lastly, I too can understand why eBay want to cut out Paymate as an option, but it's not the reason you're suggesting - eBay will get a kickback from PayPal if they maintain an 80%+ rate of PayPal payments on the site, but will have to pay a penalty to PayPal if it falls below that. That says it all, IMO.

(PS The ACCC would have thwarted eBay's attempt to go PayPal only, not sure if they'll do anything about the exclusion of Paymate, because you can still offer a range of payment options like bank deposit etc 😞 ).

[phorum_junkie*]

The ACCC did indeed only request ebay to continue to allow bank deposit to be used, they agreed at the time that they did not have the authority to stop ebay going with electronic payments only. This was very clearly stated at the time although a lot of members only read that bank deposit was to coontinue to be allowed and presumed that the ACCC had forced the change on ebay.

I could well be wrong about the refund policy but the seller would have to have a Paypal account as that is where ebay claw back the money from if they find against the seller, I am willing to bet that Paymate would not agree to comply as sellers do not have money in their Paymate accounts, it goes into the seller's bank and is not held anywhere.

[lyndal1838]

PJ, I have just looked at the ebay refund guarantee and there as large as life it tells the buyer they can get their money back if they paid through Checkout with paypal, Paymate or credit card or as a paypal guest.

I have no way of knowing what seller protection there is but from the buyers point of view they are covered for all the current ebay safe payment methods.

[colic2bullsgirlore]

Registered: 05-31-2008 ... Third line forcing notification N97305 lodged by eBay International AG ..... as the one when they wanted to bring in PayPal only, which was protection from legal action rather than an actual sanction on the move.

http://www.aitkenwilson.com.au/article-080710-anticompetitive-practices.html

The reason for the ACCC’s intervention was that eBay was effectively stopping buyers and sellers from having a wider choice of payment options when completing transactions.

Of further concern was the fact that when buyers made a payment through PayPal, the seller would be required to pay

PayPal a commission each time. 

The ACCC believed that this conduct may constitute ‘third-line forcing’.

Ebay no longer owns paypal which significantly changes any claim or evidence of third line forcing....as stealthbay will

no longer glean the PP part of the profit

[campingmate]

They are bringing that in very sneaky - only emailing the people who use paymate and no one else

they are diminishings peoples right to choice - as long the payment if safe whats the problem with using paymate

paypal will give ebay a bonus if they can get 80% to use its service

Well they certainly will if they have there way as there is no other option

And then they can jack up there fees to suit them selves as NO seller who sells less than 3000 items in a month can use anything other than paypal

Dont sit on your hands people - make sure your voice is heard - use the link above

[digital*ghost]

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@phorum_junkie* wrote:

I could well be wrong about the refund policy but the seller would have to have a Paypal account as that is where ebay claw back the money from if they find against the seller, 

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No, sorry, freezing / taking funds from PayPal is one way the money can be recovered from the seller, if it can't be recovered that way, the amount is added to the seller's eBay bill. This, too, is in the policy.