eBay rebels react as a major seller on eBay goes bust, issue warning!

by Alex Zaharov-Reutt

Tuesday, 29 July 2008

Page 5 of 7 On Thursday the 10th of July, I reported on the eBay rebels’ attempt to discover what the banks thought about the safety of the Direct Deposit system, in use for decades in Australia. The article is entitled “Rebels strike back at eBay and PayPal through Australian banks” and published the eBay rebels’ letter to Australian banks. The first bank to have responded in the Commonwealth Bank of Australia, and iTWire has received copies of the response, with specific indentifying details anonymised. The letters are as follows (in italics): “From: XXXXXX To: XXXXXX.net.au Sent: Tuesday, July 22, 2008 1:21 PM Subject: Safety of Direct Deposit versus PayPal “Dear XXXXXX, “Many thanks for your query – apologies for the delayed response. “There has certainly been much said in the media of late about PayPal’s claim of superior safety over other forms of payments and this has been used by eBay (who own PayPal) as a justification to force sellers to offer PayPal exclusively. “The Bank refutes these claims by PayPal and has submitted a submission to the ACCC to that effect. “You should continue to have no occasion to feel that your account information or your use of Direct Deposit in any way places you at a greater risk of fraud. “In summary: 1.     All the banks including CBA have made considerable investments to ensure the continuing security of Internet Banking services such as Direct Deposit (or Direct Credit). In the case of CBA, nearly 50% of all NetBank customers now have two factor authentication (with either token or SMS) and our plans are to have the majority of our customers with this enhanced level of security (which ensures that a customer’s login and password credentials have not been compromised).  We offer this service to our customers free of charge and this same level of security is not available to eBay/PayPal customers. I note you are currently registered for NetBank but have not yet signed up for this service. I would be happy to talk you through this service and increase your security if you choose to do so.  For detailed information on security please refer to [here]  “2.     Within the context of bank transfers, CBA has an extremely low level of "recalled" or disputed transactions relative to the number of payments processed each month and in the rare cases that errors are made by customers, we have a excellent recovery rate.  We believe that PayPal is not a more secure payment method and that claims as such cannot be supported. “3.     eBay cite data from the Australian Payments Clearing Association in relation to international "Scheme" branded cards, but neglect to mention that the fraud experience in relation to cheques and debit cards is considerably lower than for charge and credit cards and is not in comparison to Direct Deposit. Continued on page 6. << First page <   1 2 3 4 5 6 7 Next page > Last page - Post your comment >>

 

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