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

[patsydoolan]

Yes, this will affect all - if Paypal is left as the only option of payment, then all will be subject to any new fee increases or conditions, fund holding etc. that they introduce. 

There will be no choice.

Why wouldn't you increase your prices if there is no competition?

I have used Paymate very successfully for a while now. I have found it suits me. I am not asking people to take up Paymate, just to complain about not having the choice - it's un-Australian! 

[joethenuts]

patsy could you explain to me why you use paymate ,

if it costs more ,  if most buyers use paypal and you are a seller. i am asuming.\if ebay gets a better deal by not using paymate, its called business,

[davewil1964]

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@joethenuts wrote:

patsy could you explain to me why you use paymate ,

if it costs more ,  if most buyers use paypal and you are a seller. i am asuming.\if ebay gets a better deal by not using paymate, its called business,

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eBay don't get a deal from payment methods unless they are selling. And the only service they are selling is a listing site for real sellers.

If you're talking secret commissions...

Unfortunately Paymate has proven to not be viable, which is probably why they are backing out.  Not being kicked out.

[joethenuts]

dave  at the end of the day its ebays decision  whats best for them , and its up to the banks whats good for them. 

[davewil1964]

True.

But unless eBay is still getting kickbacks from Paypal when they are real, not just legally, separate entities, there is NO reason for eBay to try to decide how payments are made. They get their commission on fees from sales, not payment method.

[amber-eyed-girl]

If you look at my feedback number, and triple it, that would be the number of eBay purchases I have made. Only one was paid for with Paymate. Not because I avoid it, but only one seller used it as a payment option. Ten years ago.

Purely going by that, you might find it difficult to raise support from fellow sellers to keep Paymate on.

[patsydoolan]

I won't go into the features of Paymate as I'm not trying to persuade people to use it. 

One of our accounts is with Paymate and the other uses Paypal - not all eggs are in one basket.

I am concerned that if Paypal's competition is removed, that we will all be subject to the consequences. 

[peterrandrews]

I had a call from one of the ebay representatives last week and was told that ebay will no longer be supporting the interface to paymate. I asked whether I would than be forced to use paypal and was told that would not be the case; I could sitll use bank deposit, cheque etc and obviously people can still pay me by paymate but would have to do it via the paymate website.

[joethenuts]

as i have asked   why would anybody sell on ebay and use paymate, against paypal,unless you have had a dispute with paypal. why would you pay more,only a question.  what about all the paypal buyers out there , that wont be looking at your items to sell,   you dont even have paypal as an option , 

[lyndal1838]

Joe, read post #17...the OP has stated that they use Paymate on one account and paypal on another.

It would be interesting thouh to see what buyers would use if there were the 2 options on both accounts.

There are some buyers who refuse to use paypal for whatever reason and they would probably welcome the Paymate option.