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EBay Abandons Plans For PayPal Monopoly

Posted by timothy on from the single-source-is-always-risky dept.

An anonymous reader writes "eBay's has lost its fight to ban all payment methods except PayPal. When Paypal originally announced the scheme it was to be global, but they began with a dry run in Australia to test the reaction of government and consumer authorities. In the public slanging match that followed between eBay and the regulatory ACCC, eBay spammed users claiming it was fighting for 'safety benefits for consumers.' Fortunately the consumers won. Conceded eBay vice president Simon Smith, 'While we disagree with the ACCC's draft notice, we have decided to withdraw the notification to stop any further confusion and disruption among the eBay community.' Nevertheless eBay insists PayPal is now always offered as a payment option. Have big corporations finally learned that they can go too far? More chillingly, if eBay had launched the scheme in America would they have gotten away with it?"

8 of 277 comments (clear)

  1. Paypal only by Mycroft_514 · · Score: 3, Interesting

    Then I would leave e-bay, after being there since 1996

    1. Re:Paypal only by Pseudonym · · Score: 5, Interesting

      Well, the purpose of negative feedback is to stop being getting screwed over by bad actors.

      There are several ways that a buyer can scam a seller. They can, for example, claim that the item is not as described, and then return something else (e.g. buying a new diamond ring and returning a cheap cubic zirconia, or buying a new laptop and returning an old one). eBay and PayPal will honour proof of postage as "proof" that the correct item was returned, even if it wasn't.

      In those situations, negative feedback was the only recourse that a scammed seller had.

      --
      sub f{($f)=@_;print"$f(q{$f});";}f(q{sub f{($f)=@_;print"$f(q{$f});";}f});
    2. Re:Paypal only by c1t1z3nk41n3 · · Score: 4, Interesting

      For better or worse some sellers screwed the rest over. People started sending out emails saying that if for any reason you left a neutral or negative feedback they would leave negative feedback on you. It discouraged honesty from buyers. I myself ended up leaving a positive feedback with negative comment attached after buying a cell phone that had been misrepresented.

  2. As an Australian by renegadesx · · Score: 5, Interesting

    I applaude the ACCC on this move but I wish somebody would have told me this was going to happen sooner. I requested them to shut down my eBay account in protest a month ago. eBay rationalized this by saying they were acting in the interests of consumers despite consumers said very clear they were against this.

    This was about monopoly and eBay getting paid twice per transaction (more money for them). They spammed me MANY times trying to say "this is for your own good". I had customer representatives hassling me all the time when I requested my account be closed and they were going "you can sign up to paypal" and I said "I dont want a paypal account" and after 5 repeated attempts, they still havent shut it down but say "its in the process of being shut down"

    --
    Make SELinux enforcing again!
  3. I don't get it... by Anonymous Coward · · Score: 3, Interesting

    Why is there no competing online fleamarket to eBay? We all know eBay sucks ass! I want my competition!

    Yes, yes, I know, build it and they will come...

  4. Re:Just cancel your eBay account by InlawBiker · · Score: 3, Interesting

    I have sold a lot of stuff on Ebay too, but I quit in favor of Craigslist. This Ebay maneuver was just a calculated way for them to muscle sellers into giving Ebay a bigger piece of the pie. It's the 'ol "gain monopoly then exploit" plan. There needs to be a name for it. There probably is but I can't think of it...

    Also here's the obligatory grammar gripe. "Have big corporations finally learned that they can go to far." Where is this "far" place and how do I get there?

  5. Re:A few questions by nolife · · Score: 3, Interesting

    I have a separate bank account with "totally free checking" at a local bank and only use it for Paypal. Nothing else. When I need to use Paypal, I deposit money in that account by check from my other bank or using their ATM out front and walk in and deposit it. If some of the horror stories I hear about Palpal freezing accounts or people being scammed happen to me, I will only loose access to a couple of dollars.

    --
    Bad boys rape our young girls but Violet gives willingly.
  6. Still happening - just yesterday, in the UK by onlyconnect · · Score: 3, Interesting

    I posted an MP3 player for sale. I was told I must offer PayPal and ONLY PayPal.

    See here for screen grab:

    http://www.itwriting.com/blog/708-ebay-insisting-on-paypal-only-in-the-uk.html

    Tim