PayPal is Now Required for ALL eBay.com Listings

Posted on July 20, 2008. Filed under: eBay, Paypal | Tags: , , , , , , |

It always seems that lately eBay waits until Friday evenings to implement unannounced policies.  Yesterday evening, several eBay sellers began receiving a rather odd message when attempting to list items.  The warning states:

“Because of your limited transaction history on eBay, you must offer PayPal or a merchant credit card as a payment method for this listing. PayPal is the safer, easier way to receive payments on eBay.

Learn more about the eBay Accepted Payments Policy.

Some payments may be held in your account to ensure smooth transactions. PayPal will release the hold after 21 days without a buyer dispute, claim, chargeback or other action. The hold may be released earlier if either of the following occurs:
  • Buyer leaves positive Feedback.
  • 3 days after PayPal confirms item delivery.
Learn more about PayPal’s Holds Policy.”

Today, we even received the message when attempting to list items.   Now, I just know the message could not apply to us — we do not have a limited transaction history on eBay since we have been selling on eBay 10+ years and sell thousands of items a month.  And the message seems even more odd because the warning appears on our listings that are PayPal Required.  The ONLY payment option we offer is PayPal but yet we received the warning message telling us that our listings must offer PayPal.

I spoke with Powerseller Support today at length about this issue.  What was explained to me is that eBay.com (ebay U.S.) is going to eventually require ALL sellers to offer PayPal unless they have a merchant account.  I inquired as to why no formal announcement was made and never really received a response. 

Previously, eBay has stated that they require sellers to accept Paypal if:

1. They sell in certain high risk categories, or;

2. They registered as sellers after January 1, 2007, or;

3. They have limited selling history (infrequent seller).

It seems that eBay has decided to now require ALL sellers to offer a “secure” payment method which is defined only as PayPal or a Merchant Account.   Of course, no formal policy announcement has been made by eBay. 

When I pushed for more information from the Powerseller rep, he stated that the warning message was simply informational at this time.   However, I have received emails from sellers who have informed me that their eBay listings are being blocked unless they agree to accept PayPal. 

I was informed by the Powerseller rep that, during this “informational” period, ALL sellers will be seeing the warning message about 2% of the time they attempt to list an item.  I asked why I would have received the informational warning message when all of my listings offered only PayPal as a payment option.  I was told that this PayPal warning message is also meant to inform every seller about the 21-day hold policy.  As I predicted in my last blog post, eBay sellers will soon see an alarming increase in the number of 21-day holds.  This is probably eBay’s way of making sure they are laying the groundwork to be able to later say they did inform us.

 

It sure is rather disconcerting, though, to get the warning message from eBay.  It is further evidence that eBay is at war with its sellers.  There is absolutely no need for eBay to be so harsh with its good sellers.  When eBay communicates their new policies in such an unexpected and negative manner, it sure makes it difficult for sellers to continue to have a positive attitude about selling on eBay. 

Why does eBay not just make an announcement that eBay.com is going “PayPal Only” for any seller who does not have a Merchant Account?  There is no need to threaten good sellers and there definitely is no need to “warn” sellers who already take PayPal, especially long-term sellers who have outstanding reputations on eBay.  I should probably be shocked at eBay’s lack of common (business) sense but, at this point, nothing eBay does surprises me anymore.  That is really the most shocking statement of all.

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15 Responses to “PayPal is Now Required for ALL eBay.com Listings”

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‘Why does eBay not just make an announcement that eBay.com is going “PayPal Only” for any seller who does not have a Merchant Account?’

I’m starting to wonder why they don’t just make an announcement that eBay really doesn’t want any sellers rated lower than the diamond level and be done with it.

What a tragic legacy for what was once great company.

We are an Exchange Service Provider (Market Maker) around the growing market of electronic currencies. Our services are Simple, Fast & Efficient. Our aim is to give people easy access to the gold economy and allow our customers to benefit from the new ecommerce revolution that is the future of money. Thank you, http://www.sellerandbuyerforum.com

I think eBay’s new policy totally sucks. I have been selling on eBay for years and have always refused to accept Paypal as a matter of principle – Paypal is owned by eBay. They get a listing fee, a final value fee, and it just chaps me to think of them getting a THIRD bite out of my tiny little “apples” by getting a cut of each and every Paypal payment.

I am in the process of checking with an attorney to see if it is possible to bring a class action lawsuit against eBay for antitrust violations. It seems to me that it is illegal to REQUIRE people to use a payment service that results in a profit to eBay.

would all so be interested in joining a class action law suit .. I have 500 plus 100% positive feedback and they are trying to say I have to become verified with paypal to continue to sell. well I do not want to be verified with paypal the last time I was verified with paypal with an acount that was designated to paypal and paypal only. someone write checks on the paypal account and cleared me out. I do not even have checks on that account it was an account for paypal. meaning the only people capable of doing such a thing had to be paypal employees.
so I closed that paypal account. opned a new one and I refuse to become verified. I have my own processing service. now they want me to fax them my account statement for my merchant account which is personal and shouldnt be shown to anyone else.
this seems very illegal to me.

I had not listed with eBay in about a year until Tuesday 07-22-08. I attempted to list several times before I realized something had drastically changed. I could not uncheck PayPal for receiving funds. I refuse to use PayPal in the past because of the horror stories I read concerning account abuse by PayPal and eBay. I have been an eBay member since 1997. I will not give these people my credit card number or my bank EFT number. They are not trustworthy.

I will gladly be in part for a class action, although the attorney (s) will receive any settlements.

yes i think what they are doing is illegal. how can they force all transactions on ebay to be done thru paypal? we all know in addition to the high ebay selling costs, there’s the paypal fee tacked on. more profit for ebay! if they are so concerned about ‘security’, why not offer google checkout? this reeks of a monopoly… totally unfair and illegal. i am first in line for a class action lawsuit!

As a small private seller on ebay since,I think 2002,they are no longer interested in my 200+positive feedback account.Consequently,I have cancelled my account.There are plenty of other ways to sell.
Who need ebay and paypal anyway?

Please email me, everyone we know in my company will join on with the class action LAWSUITE AGAINST eBay, Paypal and the monopoly that will come crashing down and have to pay us back. Thank You.

These filthy bastards at eBay are robbing the sellers. PayPal is an eBay holding. In other words, eBay receives monies for your using their proprietary payment method, thereby requiring you to spend more money with eBay than you intended. – It is simply a crooked runaround to pick your pocket, to fatten these character’s alread fat pocketbooks – at a time when all of us are trying to cut back on expenses.
eBay ought to be dragged out into the street with the Bush/Cheney administration an all the rest of those greedy crooks!!!

I wish I could have read about Ebays new policys before I wasted at least an hour and a half on and off trying to find out why my listing was not completed. The first operator said he couldn’t answer my question, put me on with someone else I had to also wait a long time to talk to, then he sends me a link about this Paypal Bullshit. Ebay you just put the nails in your own coffin. How F@@ked up is that to do this right around the Holidays. I think people are ready to spend some money since those Jackasses are finally out of The White House, but how many first time buyers, or myself with 164 perfect feedbacks are gonna sign up for Paypal. I hope their management all get fired, buy then it will be to late. Glad I don’t have stock in that Company..

I have been trying, since April, 2007, to initiate a class action law suit against Ebay and Paypal, both as separate entities and as corporations acting in outright COLLUSION with one another,
not to mention unspeakably unfair and egregious business practices, glaring monopolistic behaviors, Paypal’s acting as a bank with no license and without consumer protections, etc., etc., etc.

This is a brief summary of what happened to me in April, 2007:

I noticed that Paypal had been making double payments to some of my sellers, so I called Paypal to inquire as to the problem. Each representative refused to sort out the double payments, stated that they could not get my money back and, further, Paypal finally blamed me for “pressing the pay button twice”. NONSENSE!!! I then noticed that Paypal also made unauthorized payments to at least one person that I did not even know. Paypal supervisors, each and every one of them, categorically denied any wrongdoing or fault. By the way, Paypal was sued successfully in the U.K. for the exact same payment system “glitches.”

So, in order to avoid bank overdrafts, I then had to freeze my bank account and suddenly, with no warning whatsoever, I received a flood of unpaid item strikes on my Ebay account, Ebay immediately proceeded to suspend my account, i.e. my entire business, and summarily listed me as “no longer a registered user.” In a mere three days, I lost my entire Ebay business that I built over the course of four and a half years, 2,600 transactions, and a spotless, perfect reputation.

I had been trying to pay my many sellers for hundreds of items worth over $7,000.00, which I would then sell to retail stores. The money was in my account and ready to be paid out. Since Ebay shut me out of my own account and listed me as “no longer a registered user,” my sellers began to email me to inquire about payment. I could not see who had been paid, who had sent items, etc. Everything was unaccounted for as I could no longer access my own business.

Further, after having transferred $6,000.00 into my paypal account on the 5th of April, Paypal then tried to withdraw from my bank account in excess of another $5,000.00. And my entire account (that is, my entire business) was and still is totally blocked from me.

No one on either Ebay or Paypal would help me, nor would they admit any fault. Never, not once, over the course of several months, did I get to speak with the same person; rather, I had to repeat myself over and over and over again. Additionally, each and every worker and each and every supervisor has been absolutely unwilling to help in any way, and each was most cavalier, arrogant and condescending. Each one of them, whether on Ebay or on Paypal, spouted nothing but canned, party-line responses that did not even address my particular situation. Each representative continued stonewalling me at each and every turn. One supervisor, a particularly smug man named Dylan, told me to get an account manager…through Paypal!!

I have collected over one thousand complaints against Ebay and/or Paypal. I need a law firm willing to take these monolithic bastards to task.
PLEASE contact me so I can keep adding to my list of people that have been wronged…It is only a matter of time before Ebay and Paypal gets it all back in spades.

Sincerely,

Christina Marlowe
Santa Barbara, CA
christinamarlowe@earthlink.net

I am an occasional eBayer, and mostly buy from them. If I make a small purchase, i typically send a money order (USPO). I do use Pay Pal if it is over $50-60. It’s just easier to me and what I prefer. Some sellers are still honoring money orders, but many are not, and they cite “new eBay policy” as the excuse. I have complained to eBay, but got the standard line about how Pay Pal or credit card payments are better, more secure, blah, blah, blah. It sure seems like they are trying to cut out some aspects of eBay that made it so convenient to buy and sell items. I don’t like it, and I’ve told eBay that my activities with them will be severely curtailed. Thanks for nothing, eBay!

Hi,

Its very sad news about me because paypal is not supported my country so how i can open seller account on ebay if i register after 2007 😦

EBAY should not be able to require sellers to only advertise paypal as the only acceptable form of payment. They have eliminated US Post Office money orders. I do not use paypal, thus now am being kept from placing bids, even though I have 100% positive feedback. THis is just plain wrong.


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