eBay delays mandatory PayPal policy again

By Andrew Ramadge, Technology Reporter

June 27, 2008 02:20pm
Article from: NEWS.com.au

AUCTION website eBay has postponed controversial changes to payment methods for the second time after clashing with the consumer and competition watchdog.

eBay announced in April its plans to force customers to use its PayPal service under security measures prohibiting direct deposit and money orders as payment methods.

The change was originally slated for June 17, but was delayed after the Australian Competition and Consumer Commission expressed concerns the policy could have "anti-competitive effects".

The changes were postponed for a month until July 15 - and have now been delayed indefinitely, the company said.

An email sent to eBay customers today said the PayPal-only policy would not be introduced until the ACCC had made a final decision.

"Changes to eBay.com.au scheduled for 15 July are being postponed until the review process with the Australian Competition and Consumer Commission (ACCC) regarding its recent draft notice is complete," it said.

"As previously announced, eBay.com.au is continuing to work with the ACCC to achieve an outcome that benefits buyers and sellers."

eBay executives had sold the changes to payment options as a security measure that would force PayPal to "stand in between buyers and sellers" to reduce the chance of conflict.

"eBay is no longer willing to stand aside and allow payment methods on the site that are proven to be less safe for consumers," said trust and safety director Alistair MacGibbon in April.

However the changes would also allow the company to collect revenue twice from each transaction.

PayPal, which is owned by eBay, charges a fee of between 1.1 and 2.4 per cent per credit card payment, which would be collected on top of existing charges to list and sell items through the auction website.

eBay's email today said all Australian sellers would still be required to accept PayPal transactions as a payment method, but would not yet be forced into using it.

"Changes that came into effect on 21 May 2008, requiring all sellers to offer PayPal, will remain," it said.

"Payment methods that are currently permitted will continue to be allowed on eBay.com.au until further notice."

The company also apologised for recent confusion over the introduction date of the changes, after conflicting messages appeared on the auction website.

"eBay regrets any ongoing uncertainty that this further delay may cause and will advise you of any future plans for implementation following the ACCC process," the email said.

"Please note that some of our onsite communications may still refer to changes taking place on 15 July 2008. These communications are in the process of being updated."

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Personally, since we are now forced to include Paypal and I won't use it, i'm looking for another auction site. I've been gathering together things to sell.