Technology news and Jobs arrow Fuzzy Logic arrow eBay rebels take PayPal issue to the Reserve Bank of Australia
eBay rebels take PayPal issue to the Reserve Bank of Australia E-mail
by Alex Zaharov-Reutt   
Tuesday, 22 July 2008
What follows is page 2 of a letter sent to Glenn Stephens, the Chairman of the Reserve Bank of Australia, in italics:

”We are having significant difficulty with eBay and the methods that they are using to force PayPal (a wholly owned eBay company) as the default method of payment by our customers for the goods that they purchase from us.

“According to the annual report of PayPal for 2007 they have just 15 staff in Australia.  This does not make for very good customer support or inspire confidence in users that they can get problems responded to in a timely manner.

“Among other tactics; eBay has made their payment page into an advertisement for PayPal that gives the impression that there is only one way of paying. To pay by other than PayPal a buyer must search out the links and they are difficult to find.

“Throughout the site eBay portrays PayPal as the only safe payment method and inferring that all other methods are unsafe.  Further, this message is reinforced through media advertising and statements in media interviews. 

“They advertise a Buyer Protection scheme for PayPal that is entirely illusory.  Protection in the form of reimbursement of lost funds is only forthcoming if PayPal can recover it from the Seller.

“They cancel people’s sales if they indicate a preference for payment by any means other than PayPal. Although they demand that, in order to prove that a seller has sent the goods, we must use Registered Post, they prohibit us from requiring that the buyer pays for that Registered Post. They cancel people's sales if they offer an incentive for people to pay by means other than PayPal.

“Over the last 6-9 months eBay has suffered a series of computer “glitches” that have seen sellers Bank Details disappear from the payment system virtually forcing people away from paying by Bank Deposit. These supposed glitches impact large numbers of sellers and are widely reported in online discussion forums both on eBay and elsewhere.

“We are concerned that, unlike other payment systems used in transactions away from eBay, (credit card transactions) we are not permitted, by eBay, to pass on the additional charges that apply to the seller when a buyer uses PayPal to pay for goods purchased on the site.

“We are concerned that PayPal is not a signatory to the EFT Code of Practice.

“We are concerned that eBay is using its strength to force buyers away from alternatives to PayPal.

“We are concerned that eBay compels all sellers to offer as one of the payment options PayPal.”

Continued on page 3.



 
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