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Rebels strike back at eBay and PayPal through Australian banks

Opinion and Analysis

What follows is page 2 of a letter, reprinted with permission, from an eBay user to their bank:

”This concerns me as a very long standing customer of the CBA, as it gives the impression that established EFT transactors such as the CBA bank, do not offer equal security measures for its online EFT customers.

“The ACCC did not support eBay's view, noting that: "The evidence available does not support the view that PayPal is the most secure method of payment or offers the best service for all transactions."

“On eBay's website however, much of the PayPal propaganda, continues to imply that payment methods other than PayPal are not safe and do not have appropriate fraud protection.

“As such eBay are actively discouraging the use of other payments, (of which Direct Deposit is the most popular), and in some instances, have been deleting auctions if a seller states that they prefer Direct Deposit.

“When buyers win an auction and go through the checkout process to pay, they are presented with a large PayPal logo that fills much of the screen.  Buyers have to scroll down to find a small link at the bottom for "Direct Deposit".

“eBay argue that their dominant push for PayPal is to reduce fraud by encouraging users of the PayPal service to become Verified.  They claim in their User Agreement that "Verification, in conjunction with our other proprietary authentication methods, lowers our company's financial risk": Paypal User Agreement.

“Meanwhile, they claim in their Disclaimer that: PayPal shall not be responsible for any fraud, deception or misrepresentations by Users, whether or not the User is Verified : Paypal User Agreement.

“With all of these contradictory messages from eBay, I am confused about who I can trust.  I understand that all Australian Bank account holders are 100 point verified and the banks are all EFT Code signatories with Consumer Protection. 

“I also understand that data transmission is protected by the CBA, along with various other safety measures including transaction emails to customers each time an account transaction occurs.

“I would be grateful if the CBA could reassure me that eBay's assertions are incorrect and that Direct Deposit is a safe transaction method.  I believe that their assertions are damaging to the perception of consumers like myself who have otherwise believed that Direct Deposit is safe.”

The letter ends here with the standard formal closing.

But there’s more... continued on page 3. 



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