[QUOTE]eBay fuels fires of resentment with new PayPal-only policy
By David Chartier | Published: September 23, 2008 - 12:51PM CT
Somewhere along the way, eBay seems to have fallen under the impression that gasoline is a great flame retardant. As if a slew of negative policy changes and a failed acquisition weren't causing the company enough problems, eBay has announced that, come next month, PayPal will not only be the preferred method of payment in the US, it will be virtually the only method, period.
Announced in a seemingly innocuous FAQ update (hat tip: The Inquirer), eBay will no longer allow checks and money orders as payment methods across its site beginning in "late October 2008." Except for a few specific items like cars, real estate, industrial equipment, and "mature audience" goods, eBay will only allow PayPal, ProPay, and payment upon pickup as compensation methods.
"We're making this change to better meet buyer expectations for a consistent, more secure checkout experience on eBay," another portion of the FAQ update says. "This should increase buyer confidence in shopping on eBay, which should result in more buyers and increased sales for sellers. The change will directly benefit sellers by making payments faster and more reliable, enabling sellers to ship more quickly and increase buyer satisfaction."
eBay is also wearing its new "What, me compete?" policy on its sleeve, as alternative payment methods like Google Checkout and Checkout by Amazon are deemed to "compete with eBay on a number of levels, so we are not going to allow them on eBay." The company also states that more alternative electronic payment providers will be added in coming months, with ProPay cited as a good faith example. Direct credit card payments to vendors with a merchant account are still allowed, as well.
The site's aggressively self-interested payment policy change isn't the first sign of trouble at eBay. The stumbling giant has been tripping over itself since at least since 2006, and its moneybag has a Skype-sized rip in the bottom. Clubbing Craigslist—a company eBay heavily invested in—this spring over secretive meetings and ulterior motives didn't help anything, and gagging sellers from leaving feedback of any kind on buyers sparked a revolt.
Then there are eBay's phishing fraud and software piracy problems, plus its clear move away from the auction format to an online flea market. But let's also not forget that eBay tried—and failed—to pull a PayPal-only stunt in Australia earlier this year. eBay used the same "transactions will be safer, more secure" spiel down under, but the Australian Competition and Consumer Commission said the move was unfair.
Dropping checks and money orders in the US could put a dent in eBay's payment fraud headaches. But denying outright the use of competing payment platforms in favor of its own will likely do nothing but fuel the fires that already engulf the company's struggling auction service.
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[url]http://arstechnica.com/news.ars/post/20080923-ebay-fuels-fires-of-resentment-with-new-paypal-only-policy.html[/url]
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ZOMG!!
Time to find a new place to sell crap
[url]http://money.cnn.com/2008/02/06/smbusiness/ebay_alternatives.fsb/index.htm[/url]
[url]http://www.appscout.com/2008/03/boycott_fever_ii_more_ebay_alt.php[/url]
