No checks or money orders for eBay. Do buyer and sellers feel safer or scammed?
EBay recently announced that checks and money orders would no longer be allowed as payment methods with a few exceptions. Under the new policy all items sold on eBay must be paid for through PayPal, credit or debit card payment to a seller through a merchant account, ProPay or payment upon pick up.
Exceptions for eBay new payment rules include:
• vehicles
• business or industrial equipment
• real estate
• “mature audience” items
Further eBay promises that by January 2009, all of the approved payment methods will be integrated into an eBay check out system. While it insists that these changes benefit buyers and sellers, many users are not happy campers.
• buyers can expect a more consistent and secure check out experience
• increased buyer confidence will increase sales
• sellers will receive have more reliable and faster payments
• faster shipments mean buyers are happier too
eBay points out that of US transactions paid with Papal, 25 % are paid within 5 minutes and 73% are paid within 24 hours. The online shopping giant further states that buyers today who pay with a check or money order are 80% more likely to file an "item not received" dispute and 50% more likely to leave negative feedback than buyers who pay with PayPal or credit cards. eBay also argues that listings that don't accept PayPal or credit cards are more than twice as likely to experience an unpaid item as listings that only accept these payment methods. It also shares that 1 out of 5 current transactions send buyers off of the site to complete their purchase and buyers' experiences vary greatly depending on the payment provider and seller. By using an integrated payment system, eBay says buyers will be able to remain on site to pay.
Not everyone agrees that these changes benefit buyers and sellers. Some feel that the motivation behind this change benefits eBay alone. Some feel that the new plan keeps all payments running through eBay and encourages it with profitable payments. An earlier similar plan in Australia was revoked. EBay is quick to point out that this new plan applies only to U.S. transactions.
Many consumers are complaining that they don’t want to use these new limiting payment methods because they are uncomfortable providing credit card or debit card information on line for fear of identity theft or fraud. Some users argue that they have been buying comfortably on eBay for years with money orders and never had or reported a problem. Others argue that there is still a cash economy in the U.S. that eBay is ignoring.
With the current financial and banking crisis, many argue that they are unable to use credit cards or are untrusting of banks and will not shop at eBay under these new rules. Some sellers are unhappy too. To accept credit card or bankcards, seller will have to upgrade to a merchant status which costs sellers more.
If it is all about security, some ask why alternatives like Google Check Out are not included in the new check out plans.
Comments by an eBay seller: “If the check doesn't clear---you don't ship. Simple as that. PayPal only benefits only one place EBAY AND EBAY alone--more money in their pockets since they own PayPal.”
PayPal itself has been found to be a safe way to make financial transactions on line, whether with eBay or other popular on line sellers. Readers will remember, though, and keep in mind for their own safety, the identity theft phishing scam that sent out e-mails claiming to be from PayPal only to redirect readers to an unsafe site and attempt to get their personal information.
Do you feel safer with shopping or selling under eBay’s new check out plan? Do you feel more or less at risk for identity theft or fraud when limited to credit card or Pay Pal purchases on line with eBay? We’d love to hear your story and welcome you to leave comments.
Lisa Carey is a contributing author for Identity Theft Secrets. You can get tips on Identity theft protection, software, and monitoring your credit as well as learn more about the secrets used by identity thieves at the Identity Theft Secrets blog. For more writing samples from Lisa Carey on a variety of subjects including travel, parenting, education, and consumer protection, visit New Creative Writing.
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