New Safe Payment Policy: eBay Bans Many 3rd Party Non PayPal Payment Processors

[bargainbloodhound]

***Policy Announcement: Safe Payments Policy*** 

October 14, 2005 | 05:49PM PST/PT


Rob Chesnut
Rob Chesnut
Hi, this is Rob Chesnut, head of eBay's global Trust & Safety organization. Completing a transaction with a safe, convenient payment method is an important part of trading on eBay. Buyers have a wide variety of choices about how to pay eBay sellers, and while most of the payment methods offered by eBay sellers offer a high degree of safety and convenience, a few simply are not appropriate for the eBay marketplace.

Based on safety concerns and input from the Community, we feel it's time to establish a Safe Payments Policy that clarifies eBay's position on payment methods. This policy will be enforced beginning January 15, 2006 and will not affect any commonly used payment method on eBay today.


Sincerely,

Rob Chesnut
Senior Vice President, Trust & Safety

eBay wants to ensure that the marketplace offers an array of safe and convenient payment choices for its buyers. As described in our safe buying guide, eBay strongly encourages sellers to offer payments through PayPal – PayPal is not only convenient to use, but it also offers buyers and sellers industry leading protection against fraud, chargebacks and theft of financial data. Merchants with their own merchant credit card processing account, and those who use a third-party processor, may also offer their buyers the option of paying directly with a credit card online (including through third party checkout) or by phone.

From time to time, as new payment services arise, eBay will evaluate them to determine whether they may present trust and safety concerns and are appropriate for the marketplace. eBay will consider the following factors, among others, in making its determination:

      Whether the payment model offers substantial financial, privacy and anti-fraud protection for buyers and sellers

      Whether the payment model raises the potential for confusion among eBay users, or involves incentives that may present fraud concerns


      Whether the payment model involves precious metals, or other non-cash (points, miles, minutes, coupons, discounts) as consideration


      Whether the payment service has a substantial historical track record of providing safe and reliable financial and/or banking related services (new services without such a track record generally cannot be promoted on eBay)


      The identity, background and other business interests of the payment service sponsor


      The license/regulatory status of the payment provider in the countries where it provides payment services   

Offline payment methods generally do not offer the same level of protection or convenience as online payments. Nonetheless, they may be appropriate for certain types of transactions, and sellers may use listings to offer acceptance of most valid financial instruments, including personal checks, cashier’s checks, money orders including BidPay, or COD.
Policy

Permitted on eBay.com: Sellers may offer to accept PayPal, credit cards including Mastercard/Visa /Amex/Discover, debit cards and bank electronic payments online for eBay purchases. Sellers may also offer to accept ban- to-bank transfers, often known as bank wire transfers or bank cash transfers, and the online money order service Bidpay. Sellers may accept COD (cash on delivery) or cash for in person transactions. Sellers may offer to accept personal checks, money orders (including Bidpay), cashier’s checks, certified checks and other negotiable instruments.

Not permitted on eBay.com: Sellers may not solicit buyers to mail cash. Sellers may not ask buyers to send cash through instant cash transfer services (non-bank, point-to-point cash transfers) such as Western Union or Moneygram. Finally, sellers may not request payment through online payment services not listed in this policy.

Violations of this policy may result in a range of actions including:

      Listing cancellation

      Forfeit of eBay fees on cancelled listings

      Listing cancellation

      Limits on account privileges

      Loss of PowerSeller status

      Account suspension

This policy does not affect any payment method commonly offered on eBay today. However, there are some sellers who have listings offering to accept cash and Western Union instant cash transfer, and a few who offer other payment methods that are not permitted under this policy. To avoid disruption of these sellers’ business during the holiday shopping season, eBay will delay enforcement of this policy against existing payment methods until Jan 15, 2006. This policy will be localized for other eBay sites in the coming months.

[mandy]

Some Banned payment methods:

Cash

Moneygram money transfers
Western Union money transfers

Moneybookers
iKobo
PPPay.com Instant
StormPay

e-Gold
Greenzap

other 3rd party payment processors not specifically listed in the new policy

[bargainbloodhound]

Moneybookers
iKobo
PPPay.com Instant

We currently offer all 3 of these as payment methods.  Both Moneybookers and PPPay.com Instant are regulated by the UK's financial regulator FAS.  So, under eBay's new policy we will not be able to offer buyers the option of paying through these 2 government regulated payment processors, but we will be able to offer buyers the option of paying through the unregulated PayPal.  :

After the enforcement of this new policy begins we will be offering our eBay buyers only one payment method:  Visa/Mastercard through our Merchant Account,  We will be dropping PayPal as a payment method on eBay.

[regic]

Like I care. I've never accepted PayPal or sold on eBay. 

[amy]

[quote author=regic link=topic=829.msg3119#msg3119 date=1129393928]
Like I care. I've never accepted PayPal or sold on eBay. 
[/quote]

[stardust]

So, what does anyone think that ebay is doing overseas?  No one uses credit cards over there, just debit-type bank-to-bank transactions between countries. Surely they can't shoot themselves in the arse over there! 

My goodness.  Such greed -- masquerading as 'user protection'.  What a spin!

Politics, anyone?  Reminds me of this country now, where folks just continue to roll over and allow themselves to be taxed and taxed and taxed, all the while also playing into the 'protect the criminal at all costs' and 'to heck with the victim' mindset in our own courts of law. Spin never changes, no matter the source.....  And the masses will buy it.

Thank you, thank you, O Great Meg.    Grant your wish and I shall obey! 

[amy]

[quote author=stardust link=topic=829.msg3121#msg3121 date=1129394868]
So, what does anyone think that ebay is doing overseas?  No one uses credit cards over there, just debit-type bank-to-bank transactions between countries. Surely they can't shoot themselves in the arse over there! 

My goodness.  Such greed -- masquerading as 'user protection'.  What a spin!

Politics, anyone?  Reminds me of this country now, where folks just continue to roll over and allow themselves to be taxed and taxed and taxed, all the while also playing into the 'protect the criminal at all costs' and 'to heck with the victim' mindset in our own courts of law. Spin never changes, no matter the source.....   And the masses will buy it.

Thank you, thank you, O Great Meg.     Grant your wish and I shall obey!   
[/quote]

This was in the notice:

This policy will be localized for other eBay sites in the coming months.

The way it'll probably be localized is:

US: Bidpay
Australia: PayMate
UK: NoChex (maybe), although since both Moneybookers and PPPay.com are regulated by the UK government, eBay is going to need a very creative excuse to explain why they're "unsafe"

[Anita]

eBay is going to need a very creative excuse to explain why they're "unsafe"

Naw, they won't have to explain.  They will BS how safe PayPal is and everyone will eat it up!

[bargainbloodhound]

[quote author=regic link=topic=829.msg3119#msg3119 date=1129393928]
Like I care. I've never accepted PayPal or sold on eBay. 
[/quote]

Maybe that'll change with the acquisition of SKype...maybe you can convince eBay/Skype to partner with your company and offer the first VOIP "Video Chat"  service... 

My goodness.  Such greed -- masquerading as 'user protection'.  What a spin!

Yeah, something (eBay's past track record) tells me that greed not user safety is eBay's primary motive in implementing this new policy.

So, what does anyone think that ebay is doing overseas?  No one uses credit cards over there, just debit-type bank-to-bank transactions between countries. Surely they can't shoot themselves in the arse over there! 

I think they're cutting US sellers (especially the majority who don't have merchant accounts) on the .com site off from doing business with buyers in the many countries where people either don't have credit cards or PayPal isn't offered.

[iron_chick]

I must be confused.

I thought eBay was "just a venue"??