Online auction house eBay Australia will scrap its in-house buyer protection program as it seeks to boost transactions through its subsidiary PayPal.
Under a new program to be launched in June, PayPal will double its buyer protection scheme to $3000 for purchases from well-known eBay sellers. The scheme replaces eBay’s own program, which offered protection of up to $400, excluded payouts for postage expenses and charged $25 for a claim.
But while the program has doubled the maximum amount buyers will be eligible to claim, it is likely to incite reaction from some vendors who prefer not to use PayPal.EBay has long recommended PayPal over other methods, even before its acquisition of the payment system in 2002.
While users can conduct payments through direct transfer or cheque payment, services like Western Union are banned on eBay. By using PayPal, users can transfer money over the internet without needing to reveal bank account details to third parties.
Alastair MacGibbon, trust and safety director with eBay Australia, said the new protection program was one of several major changes to eBay in recent months.
“Unashamedly, eBay is focusing on the buyer experience and making sure that it continues to provide innovative ways for improvement in that buyer experience,”
Mr MacGibbon said.
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