Ebay makes PayPal mandatory

Ebay plans to squash all payment methods apart from PayPal… Australian users will be the test case

Australian users will be a test case for Ebay’s latest policy changes…Yesterday Ebay announced a new policy where all modes of payment apart from PayPal will be barred from use on its Australian site, with other countries tipped to follow suit.

As of June 17, direct deposits, personal cheques and money orders will no longer be payment options on the site. Buyers will be forced to either pay COD for an item or use the Pay Pal service. Not even Visa and Mastercard are exempt – with buyers being pushed through the PayPal service to complete their transactions.

Sellers can be charged up to 2.4% for the transaction.

The move has many Ebay users up in arms – with some even threatening to report the website to the ACCC. Meanwhile Ebay’s Trust and Safety Director Alastair MacGibbon admitted some users may be disgruntled by the move, still he has nothing but praise for the new policy – citing increased buyer protection as the main benefit to the customer.(Ebay has expanded its Pay Pal Buyer protection from $3000 to $20,000)

“Some would be angry but that’s a minority. A significant number of our users already use PayPal,” says Mac Gibbons. “Internal data shows that those using PayPal are almost four times less likely to have a dispute over their purchase than someone who’s paid with bank deposit.”

Source: Australian IT News