Monday, January 02, 2006
New rules from eBay that went into effect Jan 1st 2006 block most all payment processors, with the exception of PayPal. eBay claims these new policies are an attempt to protect users from fraud, but they also limit the choices a user has for which payment processor to use, leaving eBay owned PayPal as basically the only realistic choice for users.
eBay will now close auctions and go as far as suspending accounts for people who even mention the use of these other processors in their auctions. The processors now not accepted include the novel service, StormPay, e-Gold (no surprise), Western Union or other money transfers.
The only other alternative they allow is BidPay, cash and money orders, or credit cards through third party processors that charge a merchant fee (usually around the same or higher than PayPal).
So is this move an effort to keep fraud and chargebacks down, or increase profits for PayPal? You can read more about these new rules at the eBay Safe Payment Policy page.