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eBay Rips Off Users Increases Security By Making You Use PayPal
Posted by Nick Broughall at 2:17 PM on April 11, 2008

This time it's eBay Australia. They've decided that our country is even more risky than the rest of the world when it comes to online security, so they've decided to get rid of all payment options for online auctions except cash and PayPal. And cash is only available when the product is picked up from you, which means all online transactions have to be through Paypal.
In their own words:
"eBay is no longer willing to stand aside and allow payment methods on the site that are proven to be less safe for consumers. You're four times less likely to have a problem on eBay if you pay with PayPal than, say, if you used internet banking."
That nugget was from eBay trust and safety director Alastair MacGibbon. Thank heavens he's looking out for us. He dismissed the theory that they were merely doing it to grab some extra cash, considering they own PayPal, which charges a fee of between 1.1 and 2.4 per cent per credit card payment.
eBay's international stores plan on monitoring the developments in Australia (read: how pissed off we get when the changes come into effect in June), before deciding whether to make the same changes.
All I can say is that the Trading Post has never looked more appealing.
[SMH and News.com.au]
Comments
Midda
Posted April 11, 2008 3:40 PM
As a buyer, I prefer PayPal anyway, since I know that if I get screwed over, it's a lot easier to get my money back.
Toby
Posted April 11, 2008 3:47 PM
As a seller, I'm no longer a seller on eBay.
JAB_au
Posted April 11, 2008 4:20 PM
The honest truth is Paying via PayPal is easier, and yes as MIDDA said way easy to get your money back if the seller is a dud. It's not like Paypal is perfect but it's better than most other options.
Nick Broughall
Posted April 11, 2008 4:30 PM
I agree with you, but I did have a little issue with Paypal a couple of months back where they froze my account (complete with a heap of cash in there) and demanded that I give them details for my suppliers. Problem was, I was selling used stuff and gifts. It took 2 weeks to get my money. I swore I'd never use them again as a seller, and now I've got no alternative.
The other thing to consider is that even though this offers added buyer protection, the number of times I've "sold" something and the seller has never coughed up is too great to count. This does nothing to protect sellers – it just screws them over for more money.
Ian
Posted April 11, 2008 4:35 PM
@MIDDA, I concur. @TOBY, I concur too!
zacislost
Posted April 11, 2008 4:42 PM
I prefer paypal, plus I always found the customer service top-notch
ShadowKnyght
Posted April 11, 2008 4:56 PM
huh!?? PayPal makes buying stuff safer?? since when - all the seller has to do is send you a snail in a box - or actually just an empty box, via some form of registered post - so that they have a tracking number for proof and paypal will side with them every time citing they do not get involved in disputes regarding attributes and quality... so paypal use just ensures sellers who know the system can rip off with immunity - box up anything they want and send with registered post and they get to keep your money!
See here my experience with a large purchase via paypal:
http://www.cyber-mag.com/phpBB2/viewtopic.php?t=1424
Kenel
Posted April 11, 2008 4:56 PM
Security is important to customers but I don't think Ebay is doing themselves any favour by limiting payment options to just Paypal
I think in 1yrs time, ebay will be history unless they get their act together
Arno Borowicz
Posted April 11, 2008 6:03 PM
I have never used paypal but any company which reduces the payment choice to 1 is not doing this for the welfare of its clients. I will not be using ebay again either as a seller or buyer.
Leon
Posted April 11, 2008 6:06 PM
As both a seller and buyer, i stay away from any method of payment taht is not paypal or cash! I have never had any problems, but i have been lucky, some of my friends have forked over almost 1k to be screwed over! Paypal shoudl lower its margins however to accomodate sellers. Its bloody greedy as it is!
Dave
Posted April 11, 2008 6:22 PM
Yeah man this sux! You used to be able to pay cash a few years ago and still be entitled to insurance through ebay. But slowly they have changed the rules so only insured if you pay through paypal and now this. It sux balls if you ask me!
sae sartori
Posted April 11, 2008 6:40 PM
so what you're saying is that giving out your bank details to total strangers over the internet is not a demonstration of total ignorance?
thank you for your angry and biased one sided view.
moggyx
Posted April 11, 2008 6:42 PM
It is a pretty crap move. Whilst PayPal is easy to use and lets you pay for stuff on your credit card. It seriously is just a money grab by Ebay.
Who knows though, it may just help with prosecution of people scalping concert tickets as Ebay will have a transaction record. I still think it's a case of bring your own lube though....
Tim
Posted April 11, 2008 7:04 PM
As a powerseller, I find paypal is stacked against the seller in many ways (and yes I buy a lot as well, using Paypal to pay for things). I get quite a few buyers "claiming" not to receive anything when they've chosen regular Aus Post - while I have clearly offered Registered Post as an option.
So, we get to pay eBay to list items, pay a % to eBay when we sell items, then pay more % to eBay/Paypal when a buyer pays using Paypal, because now there's no other option, and then we get screwed over false buyer claims when they haven't received anything, when I clearly have.
What am I going to to do? Easy. Bump up the prices on all my eBay items and S&H costs, and state clearly in the auction why I have to do so. I won't like it, buyers have to pay more, and the clear winner is eBay.
And let's not forget the recent F-up with eBay/Paypal not passing through Paypal notes to end of auction emails, making a lot of heavy sellers look ignorant. Again, very poor service to sellers.
A real Australian eBay alternative has never been so attractive, but it's a community network problem - eBay has buyers and sellers, while a potential competitor has to start from scratch and is unlikely to get off the ground. But all that said, I'll probably end up listing on all alternative auction sites as I no longer want to be reliant on eBay.
I'll also be pushing all customers heavily to my site http://www.88speed.com (which sells my car vinyl designs), where they can buy my items (and ironically, pay securely using Paypal until I find an alternative payment gateway) with a larger choice than the 10 items I list on ebay.
Good onya eBay, keep on finding ways to grow profits while screwing sellers over.
dexter
Posted April 11, 2008 7:04 PM
I should have come up with the Ads.
http://img267.imageshack.us/my.php?image=ebaylolav5.jpg
Molokov
Posted April 11, 2008 7:23 PM
I think this is crap. Now we have to pay eBay once and PayPal a second time for any transaction...
BOOGIE
Posted April 11, 2008 7:38 PM
The conflict of interest between Ebay giving Paypal a monopoly on payments is to obvious to ignore. Putting their move under the guise of consumer protection insults the intelligence of the public. The four times less likely sound bite is unsubstantiated. Paypal should put its money where its mouth is and make public just how many buyer protection applications are successful. The Paypal fine print gives too much discretion to Paypal in my view and I see so many hurdles in front of me that I'm not convinced that there is much protection at all! Just read it and see what impression it leaves. It left a sour taste in my mouth by just reading it. If buyers don't want the 'protection' of Paypal then they should have a choice. I'm washing my hands of Ebay if they do this, and I hope enough people do it as well that Ebay starts to pay attention.
Hoffy
Posted April 11, 2008 7:48 PM
I will not be using ebay anymore if I can't use bank deposit express, it's the only way I like to shop,
I have avoided auctions in the past that only accept paypal because I don't want to pay banking fees!!!
enough bank fees at real banks, we don't want bank fees from ebay/paypal too!!!!!!
shame ebay, shame.
John Thompson
Posted April 11, 2008 10:21 PM
I love paypal and much prefer them to the alternatives like direct transfer. I recently had a dispute resolved by them. Dud fake product, complete refund.
bl4cK
Posted April 12, 2008 2:19 AM
I'll never use eBay again.
Nate Cochrane
Posted April 12, 2008 10:57 AM
It's third-line forcing, it's illegal, and the ACCC should act.
Wok
Posted April 12, 2008 11:20 AM
As a seller you can already choose ONLY to accept PayPal anyway so who cares if a seller makes the choice to take a little more risk?
Personally I think this could be anti-competitive behavior; allowing access to other services to help build a large user base and then taking it away with no good reason.
I also feel a lot more comfortable knowing that I am giving my money to someone who has a bank account with an Australian bank rather than some nameless person with an email address.
I believe the only reason they left cash as an option is because they have to under Australian law.
They’ll lose my business.
Matt
Posted April 13, 2008 9:39 AM
I honestly don't know why you people buying things are complaining about fees. Try buying the same thing in the shops, and see how the price compares!
As for sellers, maybe it's a bit harsh.. but I reckon that there are a whole heap of people who have either stayed away from eBay because they're worried about being ripped off, who will hopefully start getting involved.
For me, Paypal also simplifies the whole billing side of things.
Positives and negatives, but I'm hoping the positives will win through in the long term.
Poo
Posted April 13, 2008 10:26 AM
ACCC
Stew
Posted April 14, 2008 10:07 AM
Yeah I'm not happy with this. I use PayPal fairly often, but I like to have the CHOICE to use it - not being forced to.
I too would be interested to see what the ACCC has to say about this, and then even more interested in seeing how eBay weasel their way out of conforming to any "recommendations".
Ian Knox
Posted April 14, 2008 1:25 PM
Remember when Altavista was search engine of choice? Thought it would never end and it did. This is just one more step in eBay Australia squeezing every last drop out of us. For now, like many sellers I am stuck with eBay because buyers love it. Ironically I welcome paypal, despite the motivation for its introduction being completely flawed. Now I will have buyers emailing me asking if they can pay by whatever other method. Currently I can already list as paypal only if I want to. Unfortunately good auction sites have all ready come and gone in Australia. Oztion is having a go, but it is not real competition. The time is right for Amazon, Google or perhaps a new Microsoft/Yahoo to blow eBay out of the water. Nobody minds paying a commission on a sale, but with Australian listing fees 20 times higher than other countries,what loyalty we once had is well gone. Build it and we will come.
T57
Posted April 15, 2008 5:32 PM
There is an Australian alternative to ebay - oztion.com.au. Cheaper to list items, workability similar to ebay it just needs more items for sale and buyers. Howabout we give an Aussie startup a free plug out of all this and start to boycott Ebay
ATOMIC ANDY
Posted April 17, 2008 6:53 AM
the reason for ebay to go paypal only is because THEY OWN IT LOLOLOL...SIMPLE AS THAT.DO WHAT I DID.GO TO OZTION.NO LIST FEES,LOW FINAL VALUE FEES,PAY ANY WAY YOU WANT.IT CANT BE BETTER AND I KNOW CAUSE I SELL THERE..
ABSOLUTE AA
Posted April 17, 2008 7:03 AM
HEARD OF PEOPLE POWER????????????????
ever heard of the saying "a change is good" ??
well what the bloody hell are you all waiting for?????
OZTION is where to go.100% owned.the best.i listed 19 items this week as a buy now and i sold 15 of the 19 items.the 4 i didnt sell automatically relisted and there is NOOOOOOOOOOOOOOO listing fees..please tell your friends to buy and sell on OZTION....EBAY Australia,i hope you learn a lesson soon.i really do.
aaa seller
Posted April 17, 2008 7:30 AM
WHAT A LOAD OF SHIT.one buyer is saying wont change anything on ebay listing prices and they love to pay with paypal.well i can tell you now you buyer,my postage has gone up cause of this so dont say it wont make a difference to buyers.you will pay more i can assure you.i would say ALL sellers will up their prices to cover this crap new ebay paypal rip off system.OZTION here i come...cheers :)
ALICE A
Posted April 17, 2008 9:11 PM
Well well.remember when ebay uped their listing fees from 35 cents to 50 cent ???everyone was saying "im going to do this im going to do that"please,you all went back to ebay.but not me.i found oztion.com.au.i can say i love them so much.maybe you have learnt a lesson with ebay?????if they(ebay),keeps racking it in they WILL one day say "ok i want half your money "you might sell something for $100 and they will take $50.00.whats stopping them??not much at all.NOW IS THE TIME TO MOVE...GO TO OZTION AUSTRALIA its 100% Australian owned.
ADAM ANT
Posted April 17, 2008 9:33 PM
PEOPLE JUST DONT GET IT.NO USE TELLING ACCC,ACA,LAWYERS ETC...EBAY EMPLOY THEIR OWN LAWERS.DONT YOU THINK THEY KNOW WHAT THIER DOING IS ALL LEGAL???THEY HAVE DONE THEIR HOMEWORK AND KNOW WHERE THEY STAND AND KNOW THEIR RIGHTS.So dont say "im telling on you Mr ebay"like a grade oner DERRRRRRR !!!
applesmate
Posted April 18, 2008 6:45 AM
that was the very last straw for me.i kept ebay happy by turning approx $5000.00 per week.i wont say what i was selling because greebay will know who i am maybe.but i can say i opened my own online store now.should of done it years ago.so far since opening my online store its selling better that when i was with greedbay because i can sell my items cheaper due to nooooooo fees etc..:o)cheers greedbay..
hag
Posted April 18, 2008 7:35 AM
Great prefer to pay by paypal anyway
Icy
Posted April 18, 2008 9:29 AM
ACCC is already involved since yesterday:
Section 47 of the Trade Practices Act prohibits exclusive dealing which broadly involves one trader imposing restrictions on another’s freedom to choose with whom, in what or where it deals. In some cases, exclusive dealing is prohibited outright and, in other cases, only where it substantially lessens competition.
One day after making the announcement, law firm Deacons, representing eBay, filed an "exclusive dealing" notification with the Australian Competition and Consumer Commission (ACCC) requesting immunity from the Trade Practices Act.
In the documents, Deacons partner Calum Henderson argued that the PayPal-only policy would not substantially lessen competition, and the mandatory procedures were for the sake of security and customer protection.
http://www.australianit.news.com.au/story/0,24897,23548903-15306,00.html
A.B.FINCH
Posted April 19, 2008 7:47 AM
Ok then..What has ACCC DONE ABOUT PETROL PRICES HERE???????????????????
DIDNT LISTEN TO THE NEWS???????WELL I CAN TELL YOU THEN..............NOTHING.......
AND YOU EXPECT ACCC TO DEAL WITH EBAYS NEW POLICIES?
PLEASE!!
paul lomas
Posted April 19, 2008 8:11 PM
Pay to list. Pay to sell. Pay to accept payment. When are people going stop touching their toes and stand up and be counted. This is nothing other than outrageous. We live in a democracy. How dare eBay tell us what we can and can't do. I'm sure Trading post will see an increase in business.
Ted.H.
Posted April 20, 2008 7:13 AM
Whats ACCC GOING TO DO????? A BIG FAT NOTHING..
TRICKY DICKY
Posted April 21, 2008 8:56 PM
Well i had enough of ebay crap..so long ebay (greedbay), hello OZTION
humpty do dah day
Posted April 22, 2008 7:00 AM
Time to move to a new auction site.I went to oztion in australia and to my surprise i listed 10 items for free and sold 9 of them.Great to see oztion charges no listing fees and charge a lower final value fee to sellers (not to mention i can offer many payment methods unlike ebay..).Oh,you can put up 3 photos of the selling item FREE.I ALSO FOUND OZTION SITE MUCH EASIER TO NAVIGATE..!!
Brian T.J
Posted April 22, 2008 8:59 PM
i can see it coming where ebay gets rid of all hobby sellers out there and stick with taxfile registered users.they will want all sellers to be paying taxes this way and do tax returns so our government gets their bit.can you see it coming ???.they wont be getting my bit.im off...!!!!!!!!!!
mick.m
Posted April 23, 2008 8:58 PM
Time for a change..good bye greedybay...
Horsery Club
Posted April 25, 2008 7:02 AM
cant use any other payment method other than paypal.
cant leave negative feedback for buyers.
final value fees going up.
speaking of final.i just sold my final item on ebay.
greedy people.
crap
Posted April 25, 2008 7:07 AM
cant use any other payment method other than paypal.
cant leave negative feedback for buyers.
final value fees going up.
speaking of final.i just sold my final item on ebay.
greedy people.
BURNED
Posted May 18, 2008 1:39 PM
I Just got my first BAD feedback from a buyer with only (3) history...I can't respond !!! when I was in the right ! My over 1.000 seller name is trashed.....til' I build up positives again...HATE the GREEBAY Fees HATE the Paypal "FORCED" option...Not sure where to go as I sell mainly secondhand...there is not much of what I sell on Oztion...need more options ???
Reg
Posted May 20, 2008 1:23 PM
Well I used to use feebay a lot as a seller, but not any more. The greedy bastards have put fees up once too often, fees, fees and more fees, and now this PayPal only (another fees grabber)
I wont even buy on feebay any more, not interested in even looking.
Auction Guy
Posted June 22, 2008 1:05 PM
I agree ... I've been using ebay for years and until a year or so ago I was doing ok. I had my own store ... lots of sales was doing really well. But with all the fee hikes I have been driven right out of business. If any one is going to use any alternative auction site my I make a suggestion??? Use http://www.onlineauctionexchange.com it has to be one of the best auction sites other than ebay ... all basic listings are free and I now have a new online store for .99 a month ... I'm doing good again thanks to this new site ... we should all do the same.
David Stow
Posted June 25, 2008 12:36 PM
I am opposed to this blatant money grab by Ebay. In addition to fees, you are even ripped off on exchange rate for international transactions. I have noticed some US sellers are still listing that they won't accept Paypal because of the compulsion edict, the conflict of interest and other changes that adversely affect sellers.
It will be interesting to see if Ebay kicks them off. I don't believe Aus ACCC will stand up to them - its toothless against the money power. Enough corporate greed - time to go elsewhere.