eBay Australia Moving To PayPal Only System

eBay Australia says it plans to only accept online payments through its PayPal system beginning June 17.

The move by eBay is likely in violation of the Australian Trade Practices Act and the regulatory body Australian Consumer and Competition Commission (ACCC) is asking for the public comment on eBay’s policy.

eBay has written the ACCC requesting immunity from legal action under the Trade Practices Act.

Alastair MacGibbon, eBay’s trust and safety director, said the change was designed to protect users who were four times less likely to have a problem on eBay if they paid using PayPal instead of other payment options.

Sellers have expressed their objections on eBay’s discussion boards and started a petition, which has more than 3500 signatures.

"If consumers want the additional protection offered by using PayPal, they can choose to use PayPal," said Dale Clapperton, chairman of the lobby group Electronic Frontiers Australia, according to The Sydney Moring Herald.

"eBay’s proposed conduct takes away that choice and would likely prevent the emergence of competitors to PayPal in the online payment market."

There are 8 Comments. Add Yours.

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Lance O'Grady
September 12, 2011 at 5:23 pm

It’s nothing to do with the security of Paypal. It uses one of the most secure encryptions in the world. Oh well, it’s done now.

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Renish
September 18, 2008 at 8:53 am

I buy lot of things from ebay. Even I use Paypal for doing most of my transactions. But forcing people to use one payment form is not a good ethical business practice. What ebay can do is, they can authorize different payment solutions from reputed companies.

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Nadia Kerr
May 2, 2008 at 12:27 am

I must admit when I first heard this news about eBay I was outraged like most other eBay users. They are double dipping by forcing everyone to use PayPal. Fees on eBays website and then also fees on PayPals website. As a casual buyer and selling additional fees is frustrating and makes me think twice about selling with them. There are plenty of other ways to sell goods and I will definitely compare where its cheaper and easier.

On another note, I also saw this as a great benefit for my existing business. I initially found many of my local suppliers for my company via eBay. Many of them were small start-up companies themselves which love the additional business they receive without the hassle of eBay listings and fees. I look forward to being able to help more small business that are turning away from eBay in the future.

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chexxer
April 22, 2008 at 7:24 am

Look like the fat cats want to get fatter, and who ever suggested it will get a pat on the back and some extra stock?

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Les
April 20, 2008 at 9:20 am

Any seller foolish enough to sell without using receipted post will be in trouble – paypal can and has been severely rorted by clever buyers – until paypal that loophole there can be no ‘mandatory’ use of its services

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Guest
April 17, 2008 at 10:22 pm

Let Mr. Donohoe run his course. Eventually, the market forces will take over and the customers, buyers and sellers, will go elsewhere. Mr. Donohoe is toast and eBay is going to lose big.

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Jason
April 17, 2008 at 12:05 pm

Ebay is desperately searching for new growth. No doubt they think by requiring sellers to accept only PayPal this will result in huge growth in the PayPal division. The problem is that it will be very tempting for them to raise PayPal fees quite a bit, knowing that sellers cannot offer any other payment service. So far eBay has been able to enact new revenue-raising policies that hurt sellers and buyers without seeing ill-effects because most sellers do a cost/benefit analysis of leaving eBay and they end up sticking around. This move could backfire though, it may the market more attractive for a new competitor.

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Affiliate Marketing Guide
April 17, 2008 at 11:25 am

I don’t think anything that has to do with PayPal is truly secure:-)