eBay To Be Credit Card, PayPal Only

The word is that eBay is banning checks and money orders, and buyers will have to use PayPal or (if the seller has a credit card merchant account or an account with a service called ProPay), credit cards.

Here’s how eBay explains the change:

Starting this fall, we’re moving to an electronic checkout process that’s faster and more reliable for sellers and buyers. As part of this move, checks and money orders will no longer be accepted on eBay, although buyers can still use these payment methods for item pick-up, at the seller’s discretion. In addition, the electronic payment methods will be fully integrated into eBay checkout. For example, if a seller has an internet merchant account, a buyer will be able to directly enter a credit card and never have to leave the site.

Today, items paid with check or money order are 80% more likely to result in an item not received (INR) than those paid with credit card or PayPal. Also, buyers who pay with check or money order are 50% more likely to leave negative feedback than those who pay with electronic methods. So starting in late October, 2008, we are moving to 100% electronic payments – credit cards, ProPay, or PayPal.

This means that sellers will be able to offer credit card payments through their own merchant accounts, and payments through ProPay and/or PayPal, with all payment methods integrated into the checkout process on eBay. Seller will also get paid faster and be able to ship items quicker. And remember, for those buyers and sellers who use PayPal, we’re backing every eligible transaction with our buyer and seller protections.

The New York Times says that this is all part of a shift away from auctions and toward fixed price sales.

“Clearly there’s a strong buyer preference for fixed price,” said Lorrie Norrington, president of eBay Marketplace, which includes the eBay site.

The banning of checks and money orders leaves some wondering about anti-trust issues. An official eBay FAQ says that popular alternate payment options such as Checkout by Amazon and Google Checkout, are being excluded from eBay because they compete with PayPal:

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.

What do you think about this new move? Will it really stop fraud? Or just increase the use of PayPal?

EBay Is Planning to Emphasize Fixed-Price Sales Format Over Its Auction Model [NYT]

***A Message from Lorrie Norrington: New Pricing, More Incentives, and Other Changes to Bring More Buyers*** [eBay]
(Photo: rightonbro )


Edit Your Comment

  1. Nick1693 says:

    I think its gonna be +PayPal, But I see the possibility of reducing fraud.

    • johnfrombrooklyn says:

      eBay has been going to list fixed-price for quite a while, but I still think it’s the auctions that drive the interest in eBay. PayPal is nowhere near as safe for buyers as using a standard credit card. So if you’re going to buy something off eBay you can buy anywhere else for the same fixed price, you’d be better off just avoiding eBay. Of course, eBay will still be the best place to buy (knowingly or unknowingly) counterfeit Tiffany jewelry, Rolex watches, Prada bags, and autographs.

      • usa_gatekeeper says:

        @johnfrombrooklyn: Please explain your remark, “PayPal is nowhere near as safe for buyers as using a standard credit card.”

        I use a CC via Paypal (not the direct withdrawal option) as a buyer at eBay and elsewhere on the web. You’re saying this is unsafe? ….. Thanks

        • Froggmann says:

          @usa_gatekeeper: Once you get defrauded by someone through paypal you will find the paypal protection is about as worthless as a sack of wet mice. Through my experiances (2) paypal was absolutely useless in getting my money back.

          I think I’m just done using eBay. Haven’t bought anything on there in a year and I can safely say I’m not missing it.

          • harvey_birdman_attorney_at_law says:

            x2. Paypal “Seller Protection” is a lie. They only want their cut, they don’t care about the transaction or providing a quality service.

            • Ken says:

              @harvey_birdman_attorney_at_law: I got scammed $600 on ebay and paypal finally compensated me after 5 phone call and talking to a manager. At first they refused because they require tracking and tracking cost over $100 for out of country. I think they took the loss.

              There was few other times I got my $ back.

        • theblackdog says:

          @usa_gatekeeper: I think he was referring to if you used direct withdrawl with PayPal instead of a CC on Paypal.

  2. akronharry says:

    Most of the fun for me on e-bay is bidding and getting a lower price. Fixed prices? I can go anywhere to buy something for a fixed price (except for old shoes and clothes) :)

  3. Triborough says:

    The whole thing with people wanting a check or money order is one of those red flags that makes you think there might be something not kosher about the thing.
    On the other hand, they’ll gouge everybody with PayPal fees.

    • taking_this_easy says:

      @Triborough: true about paypal fees….

      i dunno, i’ve sold stuff and bought stuff on eBay…. tend to like to sell stuf as BIN with Offer PRice

    • MyPetFly says:


      “…people wanting a check or money order is one of those red flags…”

      Yeah, I got ripped off after sending a postal money order for an item I won. No communication from the seller, no help from eBay, and no help from the “Postal Inspectors.”

  4. bohemian says:

    As a seller we got screwed by Paypal a couple of times. Scammy buyers who had the product and wanted both the product and their money back without a legit damage/not as described issue. As a buyer I had a not as described item. I just wanted to return it and get a refund. Paypal told me to keep it and took the sellers money back and gave it to me. I technically benefitted but still found this really wrong.

    As Ebay discontinued other payment options we quit listing with them. If they cut auctions I see no benefit to ever using them again.

  5. akronharry says:

    What’s out there besides e-bay that may be worth a look?

  6. gqcarrick says:

    Well atleast I can still pay for my porn and cars on ebay with cash or money orders, thank god for that! lol. Seriously though it doesn’t bother me they are going to all electronic payments, although paying paypal fees, listing fees and final value fees is a bit much. They really should just eliminate the paypal fees all together.

  7. MrsTrish says:

    This isn’t meant to reduce “fraud”, it is meant to nickel and dime the seller to death.

  8. Starfury says:

    I don’t buy/sell much on eBay lately. The selling fees are way high and then if the buyer uses a CC on PayPal I get stuck for more fees. I’ll use Craigslist since it’s free.

  9. hairyseaword says:

    eBay has become a giant, cumbersome e-retailer. Actual bidding and occasional rare scores are long gone thanks to bid sniping, and too many power users just use it to parcel out bulk purchases.

    What was once the world’s most convenient garage sale has turned into a warehouse led by those with the most shelves and biggest display cases.

    This pretty-much-PayPal-only thing is just absurd. For how long would we shop at Target if they only accepted their gift cards or credit accounts?

  10. Mary says:

    You know, I’ve gotten so tired of eBay and their ever changing policies and attempts to “prevent fraud” by pushing into people’s business that I’d rather give things away than have somebody pay me for them.

    How depressing is that? They’ve outgrown their usefulness so far that I would rather lose money than use them.

  11. hellinmyeyes says:

    Hmm, I’m pretty fanatical about paying with money orders because Paypal’s service is so shitty. Working to get fraud resolved with them is a ridiculous nightmare. This sounds to me like they’re trying to get a bigger take of the auction transactions by muscling their users into using their service.

  12. Snarkysnake says:

    I have been weaning myself off Ebay for a while now and this is just the final push that I have needed to go cold turkey. PayPal is not an option. It screws both buyers and sellers and is nothing more than a way for Ebay to have all of the power in a transaction with none of the responsibility.

    That said,it’s hard for me to see how this passes anti trust muster.

    I have written many times that the Ebay of today will not be the Ebay that we know 5 years from now. This just knd of confirms that…

  13. VanniMugen says:

    Just another way for FEEbay to price gouge you and take all your profits.
    FEEbay has abandoned us years ago, having forgotten who made them.
    Corporate greed, nothing more, nothing less. Unfortunately for them, I
    abandoned them years ago, and now do business on a number of
    alternative auction sites (and there are plenty of them out there). I use
    http://www.alsoshop.com and have not looked back ever since. The only way
    for you to have input and smack FEEbay for giving you the shaft is to
    do the same.

  14. andrewe says:

    Ebay is nowhere near what it once was. High fees. Lots of scams, almost zero protection. I went from an avid ebayer to someone who will never use them again.

    fixed prices and lousy protection means I will choose to shop at one of the many thousands of other online stores.

  15. Mollyg says:

    Can some one say “Sherman Anti-Trust”?

    • Snarkysnake says:


      Can some one say “Sherman Anti-Trust”?

      Actually the Aussies (God bless ’em) already did. When Ebay tried to ram this through down under, the Australian Corporation Commission said hell,no, mate. That’s because it clearly is an attempt for two of three parties (Ebay and the seller) to conspire against the interests of the third (the buyer). I really,really hope that this sees a U.S. courtroom…

    • ohiomensch says:


      I sure hope someone does. Ebay is dominating everywhere. I am a season ticket holder for a baseball team and MLB now exclusively deals with Stubhub (owned by EBAY) for its aftermarket ticket sales. They charge an exhorbitant shipping charge, and high percentage to sell through them, and if you don’t accept payment for your sold tickets through paypal, they take about 25 days to send you a check.

      I used to sell stuff on ebay, but more and more they are getting rediculous about fees and how feedback is recorded etc. The next thing is that they are limiting the amount someone can charge for shipping books, cds, and dvds. So you can only charge $4 to ship a book, even if its a 5 pound coffee table book.

  16. battra92 says:

    My brother sells on eBay and he tells me that the winner is always eBay. They take a good 10% or more off his auctions on average between them and Paypal.

    Seriously, I smell anti-trust.

  17. gandalf88 says:

    Ebay isn’t actually “banning” money orders and checks, they just won’t let sellers solicit them on their listings. If a bidder wins and asks to pay via Money Order or Check, that is acceptable.

    However, Ebay is supposedly going to monitor sellers and if they accept more than a certain percentage (a believe it is 5%) of payments via non digital payment methods, there will be consequences imposed on the seller.

    Either way, this just pushes me to finish doing business on Ebay by October 1st. Before I was just taking my time and not worrying about a deadline.

    • WhirlyBird says:

      @gandalf88: “If a bidder wins and asks to pay via Money Order or Check, that is acceptable.”

      That’s only true if you pick the item up in person.

      • gandalf88 says:

        @WhirlyBird: Actually, they’ve admitted that they aren’t really going to try to police that. They are only going to be watching what percentage of a sellers listings are paid for by non digital payments.

  18. Matt says:

    Dang this really sucks. I don’t understand how a Money Order can be fraudulent, unless it’s a fake Money Order to begin with. You cash it and that’s all there is to it. I loathe PayPal and using them essentially doubles the fees I pay out for a sale. I really see this as a move to increase the money that eBay can collect in these fees.

    • Orv says:

      @Matt: Yes, that’s the problem. There are a lot of scams going around right now involving fake cashier’s checks and fake money orders. You don’t find out it’s fake until a couple weeks after you deposit it, when your bank comes after you for the money. By then the buyer is long gone. Craigslist recommends people only accept cash for exactly this reason.

  19. WhirlyBird says:

    I only use eBay for unique, one-off items (like antique items, memorabilia, etc). Fixed price does *not* work for these types of items. Many of the people who sell those kinds of items are not professionals, but just folks selling their old stuff. Many of them have been ripped of by PayPal, and only take checks and MO. I have never had a problem buying from people who prefer paper payment. I think they should make this a switchable setting, and just block paper payment for those sellers who have demonstrated issues using it.

  20. mzhartz says:

    I’ve stopped selling on eBay, it’s too hard to do and the benefits are less.

    But I would never accept money orders or checks anyway. I don’t with Craigslist either. Too many scammers use money orders particularly.

    Unfortunately, I think that only plays a small part in eBays decision.

  21. FangDoc says:

    I used to love eBay so much.

    Now I play the same mental game I do when anyone mentions Michael Jackson, who I pretend died when his hair caught fire shooting the Pepsi commercial.

    That way, I can cherish the good memories without having to acknowledge the present horror.

  22. Patricia013 says:

    I’ve about had it with Ebay. After 10 years of good sales they have managed to destroy all the business I’ve had on their site. As for this:

    “Clearly there’s a strong buyer preference for fixed price,” said Lorrie Norrington, president of eBay Marketplace, which includes the eBay site.”

    What a joke…yeah 57 percent of sales on Ebay is thru AUCTIONS – the figures don’t lie. Ebay, in its obsession to become Amazon is killing off its own business. What a woefully mismanaged company. What a shame for the thousands of good sellers who have been pushed out while the maniacal Ebay “distruptive innovation” team takes apart something that was once great and beats it into something that is barely mediochre!

    As for no longer accepting checks and moneyorders….a lot of my customers were the elderly or the lower income folks who either don’t have credit and save for what they buy or they do not trust putting their credit information on the internet. These people will now go elsewhere. (In my 10 years of selling on Ebay I only had one check bounce!) In this move ebay does two things 1) captures every available fee from sellers for the use of Paypal; and 2) gets ready to COLLECT all sales money and then dole it out to sellers once it is satisfied the transaction is complete to everyone’s satisfaction. In this way Ebay will “guarrantee” the buyer’s purchase! I clearly see that one coming and all other sellers need to see it too.

  23. madanthony says:

    I’m a sometimes eBay seller. I’m not thrilled about this, or many of the other recent changes eBay has made (the new feedback system with the star ratings, sellers not being able to leave negative or neutral feedback, the constant harping about shipping charges).

    I seldom have buyers who want to pay with cashier’s check or money order – maybe 5%. Still, if those people don’t want to use a credit card or sign up for a paypal account, I’d hate to lose them as bidders – and thus sell the item at a lower price – because eBay won’t let them pay the way they prefer to. It is also nice not to have to give paypal their 3% with a cashier’s check or money order.

    I’ve had deadbeat bidders promise to send a money order and never pay, but I’ve also had deadbeats who say they will paypal me the money in a few days and never do.

  24. Cupajo says:

    Then they had better stop with this double dipping bullshit. If I’m a seller, I get dinged for a fee based on the final sale price of the item and dinged again for a “processing fee” when I ask for a check from PayPal. Since eBay and PayPal are the same damn company, there’s really no excuse for this.
    Actually, throw in the listing fee and they’re triple dipping.

    Yup, eBay is over. Craigslist is teh new hotness.

  25. sljepi says:

    Ebay has become a cesspool of scammers, bulk sellers& worthless overpriced junk. I used to be able to find nice deals, but now, every search yields 5 sponsor listings on top, about 3 pages of bulk merchants, and hidden somewhere on the fourth page, I start finding what I was looking for in the first place. And this was 2 years ago when I used the darn thing for the last time…

  26. Audiyoda says:

    I know the bad deals I’ve had in the past have all revolved around deals that were not electronic in nature. People claim to send a check of MO and weeks later I don’t get it – they claim it must have been lost in the mail and they’ll send another…blah, blah, blah.

    I don’t like the idea of fixed price selling, but now anything I sell on eBay is PayPal only.

  27. Geekybiker says:

    Ebay just wants to double dip on the fees. The fraud excuse (if you even believe the statistics) is just a smokescreen.

    They keep getting worse and worse. I’d rather sell on craigslist or amazon marketplace now.

  28. red3001 says:

    last time i looked at a dollar it said “public tender for all debts public and private” why does everyone hate on the dollar?

  29. digicrom says:

    This is classic, eBay resorting to credit cards and their own product for the only measures for auction fulfillment?

    I understand the reasoning for utilizing major credit cards over traditional forms of ‘paper’ payments, because it makes good business sense, but using their own product at the exclusion of competing products smacks of being anti-competitive. I personally bill my clients via CurdBee for consulting fees, and offer all my clients Paypal, Google Checkout, or standard credit card payments.

    One of the biggest problem with using PayPal exclusively for eBay auctions, is that for certain items sold they place a hold on the funds transferred to the seller within PayPal as a security measure, these include the buyers payment for shipping. This may not be a big deal for larger merchants, but for the individual selling his personal goods, listing just 6 or 7 auctions a year, it can become a real pain.

    This caveat caught me this week; I sold a spare Dell laptop for $400.00, with an extra $40 for shipping, yet PayPal is holding all the funds to protect the buyer. My problem is that this policy doesn’t offer protection for the seller! What is to prevent the buyer from taking delivery, and then doing a charge back. In this situation, I would be out $440.00 as the seller; $400 paid for the laptop,$40.00 paid for shipping (I actually paid a lot more because eBay’s UPS wizard is notorious for under-estimating shipping cost), and I no longer have the laptop. My only recourse is at the whim of an eBay/PayPal investigation, that can last weeks, and in the end I may or may not be SOL.

    At this point Junk Bonds from the eighties are looking pretty secure.

    To compound the issue, I IM’ed eBay and asked if at least the funds for shipping could be released as a mitigating point… that way I wasn’t putting out cash that was already banked… her answer was to suggest that if the seller were to leave me positive feedback, it would then in turn release the funds on hold at PayPal, and then I could ship it to him. WHAT??? I don’t consider myself a “boyscout”, but that’s patently unethical and fraudulent.

    So what did I do, I shipped the laptop on faith because the more I thought about it, it wasn’t the the buyers personal policy, he probably didn’t even know it existed, much as I was unaware, it’s eBay forcing this circumstance, and it’s unfortunate because after this I will no longer trade on eBay.

    Sad really, because conceptually, I liked eBay.

    CraigsList, you got my business, don’t ruin it.

  30. LeJerk says:

    eBay has sucked for a while now. When all the “professional” sellers started posting things up, you couldn’t get a good deal anymore. It’s all new, cheap crap now it seems. What happened to regular Joe trying to clean out his garage?

  31. NDNFabrics says:

    We are a fixed price Silver Powerseller on e-bay and have been so for a little more than a year. Our DSR’s are closing in on 5.0 and our feedback is at 100% with almost 1200.

    Our little store (http:www.nativeamericanfabrics.com) sells fabrics which are owned by a variety of Native American women through out the USA in an attempt to help them establish their own businesses. E-bay offers every store an incentive if people come into your store via another link and makes purchase.

    Recently, the Seller Development group at e-bay contacted me by telephone to go over this specific change, as well as a few of the other changes in place.

    Our store will no longer be able to “advertise” that we take postal money orders, checks or cash; however, if the Buyer contacts us and request that they are allowed to do this, we will be able to grant them their request. Perhaps 10% of our buyers use those methods to pay, as for the most part, they are on the PowWow highway.

    Regarding the new fee structure for fixed price items, we try to keep as much as possible within our store as store inventory, and then too, in order to draw more people into the store, list outside of the inventory in the area that comes up first when you do a common search for cotton or upholstery fabrics. Those we list into the Yardsale or Fleamarket section have been costing our little non-profit group approximately 600.00 per month or 4.50 per listing plus FVF’s; while the inventory items are listed at .02-.03 per month. To have the $4.50 drop to .35 per listing will create a great advantage for us.

    When you see our fabrics, you can type in any keyword into the e-bay search and find others selling the same item for more than twice the amount and plenty of times the price is the same, but in the fine print you realize that you are only purchasing 1/2 a yard instead of a yard of fabric.

    Because of the structure we have in order to sale fabric through and for our group, we are limited in earning power. So the only complaint we have with e-bay is that the final value fee’s will receive a discount if we offer free shipping across the board. We will not be able to do that.

  32. StoneKitten says:

    Craigslist rocks.

  33. wiggatron says:

    “Starting this fall, we’re moving to an electronic checkout process that’s faster and more monopolistic for sellers and buyers.”


    Honestly, eBay has turned into the Detroit of online shopping. A dilapidated wasteland. Ads every f*ckin’ where. Fee hikes. The inability to leave negative feedback as a seller (that one pisses me off the most as a long time eBay seller). Moving towards fixed price “auctions” as the norm.

    Now I will have to use scampal? F*ck that. Their largely retarded CSR’s have been all but useless in my experience and their dispute process is a total crap shoot. On top of that, there is literally no protection for the seller. I’ve already stopped selling on eBay. Now I may stop buying. What a shame too. In just 10 years they went from one of the greatest places to visit on the web to shitsville where you can buy all the Chinese knockoff crap you want with “Buy it Now”.

  34. incognit000 says:

    Speaking as someone who makes a lot of second income on eBay, I’m happy to see the check/money order option wiped out. While many people are well meaning, the check/money order thing is invariably abused. I’ve had numerous checks bounce because of the time delay involved (it takes a week or so to get to me and then it’s even longer before the withdrawal shows up on their end) and many of the money orders I’ve been sent are fakes or improper. It also makes offering refunds a pain, and if they didn’t follow your invoice and din’t pay in full, getting them to mail you a second check is agonizing.

    The fact that they cut out other methods, though, is a clear power grab. They’re clearly not interested in fraud, they just wanna get more PayPal fees, which are already akin to extortion (you really need 44 cents to process that $6 purchase?).

    What I hope is that this drags their extortionary, unfair PayPal fees and policies into the light of day, since now everyone will be forced to use it. A nice class action letting me claim damages for all the goddamn fees they’ve placed on me would feel real nice.

    • wiggatron says:

      @incognit000: Then just don’t accept checks/money orders as payment for your auctions then. That’s your own fault really. And as for the fees, please, they’ll just keep going up. Class action my arse, it’s still cheaper than selling on amazon (although I WAY prefer selling on amazon despite the extra fees).

  35. So does this mean that I can just use my CC instead of using paypal (who insists on using my bank info rather than my CC to pay people)? I like to have the extra protection that my CC offers me (and the points…i’ve spent 24 grand this year on it, i can almost get a 15 dollar gift card).

  36. KelseyDia says:

    What a joke. And why am I not surprised. I sold on Ebay for 10 years,
    watching each year become more and more ridiculous with new rules and the
    CONSTANT push to use PayPal. They would also give their stupid comments
    about how other methods of payment (like Google Checkout–give me a break)
    weren’t “safe”. Sure, those other methods weren’t safe because they took
    money out of greedy Ebay’s hands. With the new changes that occurred earlier
    this year that punished good sellers and allowed all buyers free reign, I
    had it. I STOPPED using Ebay, even with over 1200 positives.

    And seller, if you think PayPal is “safe”, think again. Ebay will hold you
    money for weeks if a bad buyer complains about something that wasn’t even
    your fault, and even charge you back. Honest sellers lose on Ebay with
    PayPal, and bad buyers win. And…Ebay continues to fill it’s greedy

  37. FrankenPC says:

    Is EBAY TRYING to go out of business? We need another online auction house and we need everyone to start going there. I’ve seen other online systems, but they are not populated enough to sustain any real momentum.

  38. Caslonbold says:

    Ebay has realized it makes the most money from Paypal. Ebay makes TONS of profit from Paypal. Ebay makes much, much less profit compared to Paypal.

    Their end goal is convert all sellers to taking Paypal (ram it down people’s throats) and get everyone to include shipping fees in the selling price so they can dip into that money as well. This way Paypal takes a fee from your listing fee, your final value fee, your shipping fee, and then they add on all the Paypal fees for accepting Paypal that they are forcing on you.

    Palpay protects Ebay sellers in NO WAY whatsoever. The dispute is always ruled in favor of the buyer. Buyer can claim anything they fabricate and get a refund and can even keep the item!

    If Paypal suspends your account, they hold all the money in your account for 180 days. They are not a bank, they do not follow normal rules placed on real banking institutions. They are cowboys, they make their own rules. When you sell an item you are supposed to ship the item before they even release the money to you. Sellers are always in peril wondering if they will actually see the money from the sale.

    They are trying to turn Ebay into Amazon. They want all the Ebay sellers to become drop shippers for them while they collect all the fees and do NO work and carry no liability or any kind for the money. They let buy.com list almost 40,000 items on the site for free!

    Ebay used to be fun. It isn’t anymore.

  39. Confuzius says:

    Sellers should quit their bitching. Paypal fees are reasonable compared to what brick and mortar store pay to accept credit cards, it’s the cost of doing business.

  40. dragon:ONE says:

    Oh god. PayPal?

    A friend sent me some cash for my birthday via PayPal. Now, I have an account, but it’s not linked to a credit card or whatever else they’d want.

    I win an eBay auction. I couldn’t pay for it. At all.
    Paypal locked me out of my money.

    Later on, I went to close down my accounts on eBay/PayPal.
    PayPal wouldn’t let me out of the account because I had money in it. That they wouldn’t send to me. Because my address wasn’t “verified”. And of course I have to add whatever accounts to make it “verified”.

    So I had to send back my money (that was supposed to go to the stuff I won >_>) to my friend.

    GG, PayPal, GG.

  41. madfrog says:

    I used to love E-Bay, but haven’t been back in two years due to problems. Someone, somehow, used my account and tried selling fake product with my info. I contacted e-bay as soon as I found out (the only way I found out about the fake listing is buyers where getting pissed off that I was not sending product). They did remove the listings, and told me to go under a new name, which I did. Then the have the nerve to tell me that I still owe them fees for the fake auction that was put up by the fake seller using my account. They accused me of somehow clicking on a link in one of those phony ebay e-mails that seem to be rampant (which I assure you I did not). I will never, every go back or buy anything from them, and it is their loss. I have spent approx 2-4 thousand dollars and had 100% positive feedback from all the people I bought from.

  42. Sentouki says:

    I never use Ebay but I sell/buy on Half.com and if they move more towards that setup, then I guess it’s good?

  43. TechnoDestructo says:

    The main reason for anyone to use Google or Amazon’s payment systems is that they hate the hell out of Paypal and do not trust them.

    Going Paypal-only should make that competition even more effective, as those people stop using Ebay altogether.

    I think I hear someone pounding nails.

  44. dweebster says:

    Paypal needs to be regulated as a bank equivalent, as that’s exactly what they are.

    I know “regulation” is so 20th century and we’re all supposed to hate on trust-busting and anything that impedes commerce as it’s a holy thing more important than God… But sometimes you just have to look at reality once in a while and figure that the guys with absolute power will corrupt absolutely. It’s sure played out that way since…forever.

  45. ShreeThunderbird says:

    I have purchased many items on eBay. Probably 98% of those purchases
    have been via personal check. The balance have been postal money
    order or cashiers cheque. I would never give a credit card number to
    an eBay vendor with whom I was not already familiar and knew to be a
    reputable business. I have read many horror stories about PayPal
    business practices which sound real enough that I do not want to do
    business through them. Speeding up transactions seems to me a very
    fuzzy reason for excluding payment via checks or money orders. This
    is especially true since PayPal is owned by eBay. Should eBay follow
    through on this threat I would no longer participate in their
    auctions. There are alternatives available.

  46. zeitguess says:

    Well, there is ecrater for online auctions as well, but meh. E-bay is actually pulling all the punches for this one.

    1. No checks or MO. They don’t get a cut.
    2. Caps on shipping charges. If your item costs more than the cap to ship, you have to eat it. Or, you have to pad your auction/BIN so you don’t get screwed. No more .99 auctions and $15 shipping. They want their 8.75% item price ending fee (which does not include the shipping $$$).
    3. Don’t forget that E-Bay recently took away the seller’s ability to leave anything but POSITIVE feedback on transactions.

    Real world example from one of my auctions.

    Item priced at $18.99 with free shipping
    Listing fee: $.55
    Final value (sold) fee: $1.66
    Paypal fee: $.85
    Total: $3.06

  47. hipersons says:

    I’ve been an Ebay customer since 1998, and since about 2001 I’ve seen a very slow decay in what I grew to know Ebay to be into what I don’t want Ebay to be. I got into ebay because I wanted a good deal on items, not to buy things at full price.

    I still buy things off there, however, because its a great resource for cheap used and new athletic equipment at really low price, be it fixed or auction.

    It’s just a shame…

  48. digicrom says:

    zeitguess: I agree, especially the shipping limits. The eBay UPS calculator said it would cost $43.06 to ship a laptop, in reality it cost me $73.97, now as a seller that is a bit to ‘eat’.

  49. colinjay says:

    I always ask for Postal Money Order only for payment. Here’s why. When you get a Postal MO, you take it to the local Post Office and cash it. No, put it in the bank and wait for it to clear business. If it’s bogus, you know right there before you ship. I’ve never had a problem and I’ve sold and purchased some high dollar items this way. I actually only use my Credit Card for smaller purchases. I figure that the real protection is having cash in hand and not paying 3-4% for the card company/Paypal to let me know that I’ve been had.

    The one time I sold an item <$5k, I used a reputable escrow account. It cost a lot of money, and it took way too long to get my money unfrozen, but it was seemingly safe for both of us. I also, took a ton of pictures, documented everything and paid a lot for shipping insurance just in case.

    I guess I’ve been pretty lucky. I always talk to people on their home/work phone and do some detective work (reverse lookup, etc.) just to make sure that if I have to go break their legs, I know where to find them.

  50. North of 49 says:

    I have insider knowledge that ebay is going to switch from insource CSRs to outsourced ones.

    My blood just froze.

  51. Whiskey Tango Foxtrot says:

    If ebay is touting Paypal as a “safer” alternative, they really need a reality check. Just peruse http://www.paypalsucks.com and you can read about the horror stories of dealing with this company

  52. joshsboringlife says:

    I’ve been a Powerseller on eBay (with 100% feedback) for two years and only accept personal checks and money orders. I used Paypal when I first started selling but had them suddenly freeze my account and withhold over a thousand dollars of my money for nine months. Why? Because a friend who logged into his account on my PC had a small negative balance on his Paypal account and they linked the two deeming it “suspicious activity”. Paypal is not a bank and they are not safe to use. If you don’t believe me try reading their user agreement terms of service. They even reserve the right to put a hold on “your” money until the buyer leaves positive feedback.

  53. Dyscord says:

    Anyone else think that ebay is on it’s last legs? At least to me. I remember back when the ebay experience was painless. Now it’s a hassle. I had to relist the PSP I was selling three times last year because scammers would end up winning the auction. Someone would win the auction, then about a day later ebay would send an email telling me that the account that won the auction was fradulent and to not ship the item. After getting fed up with it, I just sold it on amazon.

    But the whole “we’re not offering google or amazon because they compete with us” rubs me the wrong way somehow.

    • Orv says:

      @Dyscord: No, I don’t think eBay is on its last legs. Their focus is shifting because they’re making money hand over fist from merchants who are using them as a storefront. The “little guy” who sells half a dozen items a year is no longer their target market.

  54. quail says:

    I was late getting into the ebay game. Some years back I wanted to find cheap stuff, garage sale type clothing and gifts. My searches kept bringing up all of these ebay retailers offering the item at a high starting price or an even higher fixed price. What seemed worse to me was that they all had the same picture of the same item. Seeing the same picture in all of the listings screamed scam to me.

    I’ve sold some things via ebay but have never bought anything. It’s too hard to find the average joe trying to unload a used item at a reasonable price on the site. They need to separate the full time retailers from the casual seller somehow.

    Brick & mortar discount stores are a better deal.

    • econobiker says:

      @quail: Quail- alot of times those are not scams but somebody drop shipping the clothing from the manufacturer or distributor. Store A and Store B both buy from Distributor Z which ships directly to you. Stores A and B only buy though when you bid and buy yourself. These stores would make money on the spread between what you pay and what Distributor Z sells for- and maybe some of the shipping/handling too.

      I encountered this type of thing with buying a replacement motorcycle seat cover one time. Various “storefronts” listed the same item with the same picture- I purchased one and it came from some company not related to the storefront auction I had used.

      I echo the other folks here that Ebay is dying off for the yardsale type people. That is where craigslist kicked it in- local only and cash money- and why ebay would want to buy craigslist or put them out of business.

  55. Marshfield says:

    I got screwed by a seller insisting on money order. I knew better but the price was so low I went against my better instincts and got hit for over $100.00.

    This is a good thing.

  56. EightIsEnough says:

    I’m a seller at ebay and I always require PayPal payments with no alternatives. I always buy using PayPal, and ignor the rest. My safe choice.

  57. dragonfire81 says:

    So long Ebay, I’ll stick to selling locally.

    And wouldn’t you know it? I’ve made a fair bit of money that way.

  58. humphrmi says:

    I started selling on Ebay back in 1997, when everyone was selling Beanie Babies and computer accessories. It was great back then, I sold all my old computer junk^M^M^M^M accessories – got them off my desktop, got a little money, went and bought more accessories. I even bought a few Beanie Babies for my wife.

    Boy have things changed.

    The last time I tried to sell something on Ebay, some memory, it didn’t sell with even a zero starting bid and I ended up just paying Ebay an outrageous fee and getting nothing. I really don’t see the value anymore, they don’t seem to be attracting the buyers for stuff I want to sell.

    I’ve actually gone back to newspapers, word of mouth, and now I use Craigslist for stuff.

  59. ideagirl says:

    eBay seems to be be nailing it’s own coffin this year. Two years ago, anything I needed I checked eBay first, 99% of the time I found exactly what I wanted, no matter how weird or obscure. Now, I rarely find what I want (probably because there are less sellers), AND there are fewer auction listings (I rarely use the BIN). I imagine they will lose even more sellers now with the elimination of checks and MOs, which means even less choice for me. These days I do most of my online shopping through Amazon. Sorry, eBay, you ruined a good thing.

  60. Number of times I’ve been scammed when accepting PayPal: FIVE.

    Number of times I’ve been scammed when accepting a check or money order: ZERO.

    Yeah. Out of a few thousand transactions on eBay, I’ve been scammed or attempted to be scammed five times when accepting paypal payments and *zero* for accepting money orders and checks.

    Yep, that’s ebay looking out for me all right.

  61. Bruce says:

    I used to spend big bux on eBay bidding on all sorts of stuff and I had an outstanding rating as a buyer, I stopped 8 years ago because they tripped my scam/fraud alarms way back them.

    I wouldn’t care if Ebay required that you pay for every auction you won with Unicorn farts, their crappy/scammy policies don’t affect me at all, to me, eBay simply no longer exists.

  62. newfenoix says:

    Everyone that I know personally that has used eBay has been scammed. Ditto for PayPal. Three years ago my oldest daughter wanted to buy a guitar for her sister and against her better judgment, she bought one off of eBay. She used her AMEX card and it was a very good thing that she did. The item that she received was not what was pictured. She contacted the seller and asked for a refund and he told her to go f*** herself. She contacted eBay and got the same response. Well, AMEX felt differently and did a charge back. They considered it to be fraud and dealt with.

  63. snuke says:

    Ebays management has been infiltrated by people with the single goal of destroying it. You don’t mess with success, if it ain’t broke don’t fix it, etc.. These are common sense sayings. A coup has occurred–right at a time when the economy is tanking and real folks who need to sell off belongings to survive are the ones who will suffer most. Its remarkable for me to see them make sweeping, experimental changes in a mini-economy larger than some small nations. These changes are wrecking peoples lives and thier open ended user agreement keeps them held harmless. Boo.

  64. Nick_Bentley says:

    Of course Ebay is doing it to boost Paypal income, but also sending a money order or check is a bad idea for so many reasons it’s not funny. It’s slower, requires trips to the bank for seller and then they have to watch when it clears, and your lack of recourse if they send you the wrong item or nothing at all. All the big Ebay fraud cases involved this method, cashing tons of checks and then not sending the items.
    I don’t think they will go to entirely fixed prices, but they may go to listing auctions with a buy it now price before others that don’t. That would be a good way to nudge people into offering a fixed price. They are probably tired of auctions not closing because people bidding $4.35 on that new Toyota, thinking they will get it if nobody else bids.
    Sure it’s a good idea for their bottom line, but at the same time it’s good for everyone else. Paypal is the only service where if you run a refund, you get that 3 percent back. Merchant accounts tend you not refund then charge the fee again on refunds, whenever money changes hands. For a merchant on low margins that’s a disaster. Also with a merchant account it’s can be nearly impossible for a merchant to win, even if you can document you’re right. With Paypal I’ve found you do have a fighting chance.

  65. Cliff_Donner says:

    The changes that eBay has been making in the past year are going to eclipse “New Coke” in the annals of bad business decision-making.

    The biggest problem I have with the “Paypal only” restriction is that, as a buyer, Paypal has a “sending limit” (between $1,000-$10,000, depending on how much they like you), and once you reach this limit, they require you to provide them with your banking information, and, by extension, access to your bank account. (I think you may also have the option to get some kind of Paypal-brand credit card for which I’m sure you need to provide your social security number and other personal information.)

    Before you hit this “sending limit,” all the info you need to supply them is your credit card number. I’m OK with that, because that’s in fact where your protection lies — with your CC provider, not Paypal.

    It boggles my mind that these days, with the economy tanking, any business would think it’s a good idea to restrict the ways a customer would want to give money to a seller.

    Yeah, I’ve been an eBay junkie for the past 10 years (strictly as a buyer), and this change will pretty much nip that habit in the bud. Frankly, I’m finding the thought to be a little bit liberating.

  66. xip says:

    I have seen this happening already. I was going to try to sell some old computer components a few weeks ago. I hadn’t used Ebay for over a year, but I decided to sell these things on there anyway. I tried to uncheck Paypal as a payment option, and I got a message that you can’t sell things in that category (I’m not sure which category they were referring to) without having Paypal as a payment option.

    I think it’s a little ridiculous for Ebay to charge you for the auction and then charge you for the payment transfer as well. They shouldn’t force me to pay for additional services that I don’t want to use. I suppose they can do whatever they want, (unless it violates the law) but they have lost my business.

  67. kickarse says:

    +1 for Craigslist = None of this shit

  68. Yurei says:

    Pshaw, this has othign to do with fraud and everything to do with “ebay and paypal want to make the most money”. Since ebay (here on out called “feebay”)and paypal are owned by the same company/person/whatever, they’ve figured out that they can make so much more money off of you bvuy charging the feebay listing/total value prices, and then double whammy you with the paypal fees taken out.

    If it was really about security issues and whatnot, they wouldn’t have made it so hard for sellers with all this new BS and the lack of being able to leave negative feedback, etc. Paypal is absolutely no protection anymore with the people asking for money back and not giving the item bqack and paypal giving them their money back without a second thought. If anything, MO and checks are safer than paypal if you send it through certified mail as the buyer, and that the seller doesn’t ship until the check/MO clears. I will still say right in my auctions “money orders accepted” even when they make the switch, and feebay can go shove it and remove the listing if they don’t like it. There’s always craigslsit and yahoo.

    • brandoncrotts says:

      My name is Brandon Crotts, I am the product manager at ProPay. There have been a lot of questions about us since eBay announced they were banning checks and money orders and that we were being added to their list of acceptable payments. Right now we only offer a merchant account, but will be announcing a new special account for our eBay customers at the end of September. We also offer several features and will help our customers fight against fraud. You can check more out about ProPay’s features, and we also encourage you to watch for our announcement regarding the package we will offer for ebay sellers.

  69. AimeeSils says:

    Quite a recurring theme here. I’ve been selling on ebay for 9 years and recently got screwed out of $155 from a bogus buyer with Paypal’s support, and the responses from Ebay and Paypal are beyond ridiculous. They have no loyalty nor do they care for sellers. Like many on here I’m done with Ebay. How sad.

  70. Chelle7 says:

    Here is a questionnaire for eBay victims collecting data about the effects of the 2008 changes


  71. Anonymous says:

    Using paypal to reduce fraud? Isn’t that like leaving John Gotti to look after corruption? Ive read nothing but horror stories of their questionable use / theft of peoples money and numerous banking ‘irregularities’ (criminal acts they bought their way out of). These people should be in jail, not preaching security while defrauding consumers by manipulating the market to coercse the use of their service.

  72. Anonymous says:

    I’ve been buying and selling on ebay since 1998. This new payment method of paypal only will allow me to finally cut all ties with ebay. I will not continue to be raped by ebay fees and paypal fees. This is not the only reason though. The main reason I will be closing all of my accounts is that paypal is in full control of your money. A buyer can hold their money claiming they didn’t authorize the transaction even after several months have gone by, they have their item, have left you positive feedback and you have long forgotten about them. Then you have to defend yourself looking for ways to prove they bid and approved the transaction? NOPE I’M DONE!