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Tuesday, September 09, 2008

No cash allowed?!?
Posted by Antique Trader Staff

Plastic preferred.

My heart is heavy. Beginning in late October, eBay will no longer allow payments by check, money order, or "well-concealed cash."

The only acceptable forms of payment will be:

    * Direct credit or debit card payment via a merchant credit card account
    * PayPal
    * ProPay
    * Payment on pick-up

I've never sent cash through the mail, and I don't advise it, but I've paid for my eBay purchases via check and money order countless times.

I don't have a PayPal account, and in the past, I've never even bid on items where the only acceptable form of payment was PayPal. I've never even considered it. I guess I'm just not comfortable giving anyone the fast track directly into my savings or checking account.

Supposedly, this new system will be better for buyers and sellers. (You can click here to read the reasons, which are listed here on the eBay site.) Buyers, eBay says, will experience more consistent, safer, and faster transactions. Sellers will experience faster, more reliable, and increased sales.

EBay says, "These payment changes should also increase buyer confidence in shopping on eBay, which should result in increased sales for you and other sellers."

Perhaps it is a change for the better; I guess time will tell. Maybe I'm just a bit old-fashioned and maybe a touch paranoid. But I'm going to have to decide: Do I give up buying on eBay? Or do I relent and maybe get a specific credit card — with an intentionally low credit limit – that I will use solely for my eBay purchases. Or maybe I’ll get a pre-loaded debit card just for my eBay purchases.

Do I have any other alternatives?

To my knowledge, no matter what, sellers are going to have to pay to process electronic transactions. Also, keep in mind that eBay owns PayPal, which adds another layer of icing, if you will, to the fees cake that is placed before sellers.

Does anyone else out there have any feelings or opinions — good, bad, or otherwise — about eBay's paperless payment policy? Will it have an effect on your eBay buying or selling?

Am I over-reacting? If you think so, post a reply to set my mind at ease.

Post a reply here or e-mail Robyn.Austin@fwpubs.com and let us know. We'd love to hear from you.

— Karen

Added 9-11-08:

Thank you to Brandon Crotts for this link to information about ProPay:

http://www.propay.com/company/eBayAnnouncement.aspx

Antiques, blog, question of the week | eBay

9/9/2008 4:46:55 PM (Eastern Daylight Time, UTC-04:00)

Comments [13]

9/10/2008 3:52:40 PM (Eastern Daylight Time, UTC-04:00)

From a sellers stand point I have two opinions...
1) I love to receive my money now and Paypal is great for this.
2) I love to keep as much as my profits and a check or cash is great. It was perfect when people would come into my shop and hand me $500 for some Tiffany Sterling wares.

From the buyers stand point...

1) My PayPal account has been compromised for $500 not once, but twice in 10 years. I do not always wish to pay by PayPal or other services of the like due to the potential of hackers.
There is too much room for compromises in this "digital" age and to have one of the largest e-commerce sites in the world go this route when they are only a "service" to put the buyer and seller together does not make sense to me.

Keep all forms of payment open to everyone. It is a community site after all.

Of course if I am eBay, I am going to love all the extra fees I am about to receive from most people using PayPal. Ch-ching Ch-ching, the register is ringing!!!

Johnny "Big Mac" Schiek |trechicflAT NOSPAMyahoo dot com

9/10/2008 10:59:53 PM (Eastern Daylight Time, UTC-04:00)

My name is Brandon Crotts and I am a Senior Account Director at ProPay. We have been seeing lots of questions going around about our company and what we will be offering in regards to eBay's changes coming in October. We want to try to get some correct information spread about our company. First of all I want to mention that we have no financial affiliation with eBay. Second I want to let it be known that at the end of September we will be announcing a new special account just for our eBay customers. We are excited to be working with eBay and encourage you to keep an eye out for upcoming announcements at www.propay.com/company/eBayAnnouncement.aspx

Brandon Crotts |bcrottsAT NOSPAMpropay dot com

9/26/2008 8:35:00 AM (Eastern Daylight Time, UTC-04:00)

No question about it, ebay will make mega profits from this new policy of Paypal only payments!
The one additional profit that has not been mentioned regarding ebay's profit, is the "Float".
When a payment is made, it appears immediately in your Paypal account. However, when you request a transfer into your bank account, Paypal do not send it to your bank for(usually) three (3) days later.
This wait period is called the "float", in which they are making money through their investments.
Now, ebay will tell you that it is your bank that causes the wait. That is BS. I have spoken to several banks and have been told by all of them that as soon as the money is transferred 'by ebay' it is in my account.
The bank does not cause the wait, ebay does!

Geo |PaperMemoriesAT NOSPAMsnet dot net

9/26/2008 9:29:29 AM (Eastern Daylight Time, UTC-04:00)

Robyn,
As a long time seller on eBay who has conducted more than 800 sucessful transactions using "cash, checks or money orders," I find the new "electronic payment only," to be a slap in the face. I realize that I am a small potatoes to eBay and they really don't care if I buy or sell on eBay, as I don't generate enough revenue to attract their attention. I take issue, however, with eBay's justification of their new policy in that they imply it is the sellers who don't use electronic payments who have the most incomplete transactions or receive the most negative feedback. That is simply not true! I tried PayPal a few years back and had my account compromised. We all know how efficiency eBay/PayPal responds to problems! NOT! I had a few anxious days when I wasn't sure if my bank account had been violated or not. I have heard horror stories from many eBay sellers about their PayPal accounts which further added to my decision to return to "cash, checks and money orders." eBay would like us to believe that on-line payments are safer and more secure than the old fashion method that made America strong. What happened to trusting each other to follow through with payment? eBay continues to state that they are only the venue for which sellers and buyers connect, however, now they have put themselves in a position where they will "oversee" every transaction on their site. It seems to me they are now more than just a "venue" and have established themselves as an intermediary. I, for one, will not be buying or selling on eBay as of October 1, 2008. I continue to read Antique Trader and AntiqueWeek and check out all of the other recommended selling sites. I'm sure I will find one soon that will provide me with a safe and democratic method of doing business in America. eBay's current policy leaves democracy in the dust, as they continue to manipulate sellers as a means of creating, for them, a stronger bottom line. Nothing lasts forever and its only a matter of time before eBay will join the list of on-line companies that are a thing of the past.
MK

Martha Kellow |msklwAT NOSPAMaol dot com

9/26/2008 10:31:10 AM (Eastern Daylight Time, UTC-04:00)

I wonder how long it will take for someone to test through the Courts this strategy of trying to place restriction on cash transactions. Wasn't this rendered illegal just after the 13 states joined together in issuing currency?

I wonder how long the Treasury Department will take to nix this idea for expanded profits at the nation's effective-monopoly retail (I hesitate to use the word 'auction' for a channel with a fixed time-ending sale) site. Has anyone sent a complaint to the FTC yet?

I somehow doubt that even they could whitewash a huge number of justified complaints.

Hugo Ripanykhazov |fountainpenAT NOSPAMamexol dot net

9/26/2008 11:14:05 AM (Eastern Daylight Time, UTC-04:00)

I have over 11,000 feedbacks. Knowing that an average of only 1 out of 4 people leave feedbacks, you can estimate the actual amount of business I do on Ebay. I buy from anyone who accepts Paypal, money orders or checks. I even buy from new sellers if I want what they are selling. I have been burned a couple times but NEVER lost a dime - even if I sent them a money order or check. How? Ebay stood behind their buyers with what they call a "Buyer Protection Plan".

This 'paperless' change is NOT for the betterment of Ebay. It's just another Fee Grab from a bonch of money hungry conglomorates that bow to the same 'head honcho'.

During the Christmas pre-season sales, 1/3 of my buyers prefer to pay through a money-order. I have been told that the actual enforcement will not begin until January which is a good thing.

The extra fees are horrible for the small item seller. A minimum of $.40 on a paypal transaction!! Most banks today give you free services if your account has a certain balance. Maybe Paypal should consider that.

What about Paypal holding the deposit for 21 days for certain sellers? Looks like Paypal has bitten off more than they can chew on making good on their 'buyer protection' policies and now every seller has to pay the piper.

Not good. Ebay tried this in Australia and LOST! It's time the sellers do something here.

Gayle |Collectibles2AT NOSPAMcomcast dot net

9/26/2008 12:01:50 PM (Eastern Daylight Time, UTC-04:00)

Our sales are way down due to all the great new ebay enhancements. About 1/3 of our sales are paid via check or MO. Some of these buyers have already told us good-bye with the newest enhancement of PP only. Just another way for Fee-Bay to bleed us out of more $$$$. Our only hope is for someone like Google to open a new auction site, someone with the money to advertise it and get it going. To bad ebay doesn't wake up. Its the sellers that pay all the fees and there would not be buyers if they didn't have sellers. 10+ year as a ebay seller and ready to move.

John Powell |nybigjonAT NOSPAMverizon dot net

9/26/2008 1:11:09 PM (Eastern Daylight Time, UTC-04:00)

We used to sell about 500 items a year on Bay. Avg. sale about $40 . We have not bothered to list on eBay for the past year . It is a very unfriendly enviroment for mom and pop Antique and Collectible dealers . We always specified Check or MO ONLY . Why ? A German buyer reversed his $275 payment to PayPal after claiming he didn't receive the item . I had proof he did . Paypal ignored me and I had to give back the payment but they still charged me fees . Also we used to accept PayPal but stated up front we charged a small fee for this convience . eBay said I could not do this . So we put in a small packing/handling fee for ALL buyers .
The plastic only policy will help the IRS keep track of income so the government can use the tax to pay off large companies (campaign donating ones ) that fail .
Look up an item on eBay . You as now statically more likely to get listings for new items from on line stores than resale items from individuals or vintage items from mom and pop dealers .What happened to the World's Largest Garage Sale ?
For the past year or more eBay has been making it sound like a dealer is substandard if he doesn't accept PayPal , and that you are jeopardizing your money if you send a check or money order . That is what the old dealer rating system was there for . It worked fine .
It doesn't pay for me to list vintage items on eBay anymore . They don't sell .People are going back to small shops and impulse buying . The low selling prices and fees from ebay , PayPal and the USPS eat up what little profit I would make selling a $40 item from my shop .

eBay = No Pay ,,,,, PayPal = PayFail

Starcastle Antiques & Collectibl |starcastleAT NOSPAMverizon dot net

9/26/2008 2:58:47 PM (Eastern Daylight Time, UTC-04:00)

Hello,
I have been a seller on eBay since the beginning and I find it frustrating and that eBay is forcing us all to do business "their way or the highway". They are definitely going to force the little dealers off their site. I have never had any issues with accepting checks, money orders or cold hard cash and I don't believe the majority of the buyers did either.

In reality I think this is just another way for eBay to make money, they own PayPal for crying out loud. I am closing my store on eBay and I hope 1000's of others do as well.

Seth Cohen |sethcohen14AT NOSPAMyahoo dot com

9/26/2008 3:56:54 PM (Eastern Daylight Time, UTC-04:00)

Hi, Robyn & Karen --
I agree with the small inventory sellers who have already weighed in on this topic. Apparently, eBay is not concerned about losing the "small seller" business. And, it's a good thing, because I won't be listing items on eBay, if I have to pay at least an additional 40 cents to PayPal, on top of all the other nickels and dimes. It's sad. It's nauseating. It's pitiful. And, now, ProPay trying to tell us not to worry -- What a joke! If we don't like PayPal, ProPay won't be any more beneficial, especially if they are so "excited" to be "working with" eBay on this issue, as noted in one of the previous postings. I also agree with both AT editors about the risks, and the "low amount" credit card idea, just for eBay purchases. It's all just so truly sad, though. Once upon a time eBay was a friendly, cooperative community of buyers and sellers. It isn't anymore. S.

Stephanie |thedollymommaAT NOSPAMgmail dot com

9/27/2008 2:39:14 AM (Eastern Daylight Time, UTC-04:00)

As a SMALL eBay seller, this is GREAT!! Checks amd mo's are time consuming and because of the check holds, the receipt of the actual funds are considerably delayed. I don't mind paying the fees to receive my funds promptly. Although some of you might not understand - cash flow is important. For all of you who don't like it and are complaining - go to craigs list.

As a buyer - I ONLY buy through PayPal.

RV |helloAT NOSPAMgmail dot com

9/27/2008 1:41:35 PM (Eastern Daylight Time, UTC-04:00)

I have a PayPal account that I use to pay for eBay purchases, and I also accept PayPal in my online shop on Ruby Lane. I like the ease of making PayPal payments for my internet purchases, however as a shop owner, I know that I would lose sales if PayPal was the only form of payment that I accept.

My monthly sales are not sufficient to warrant a merchant's credit card account, so if I want to accept credit card payments, PayPal is my only option right now. I have many customers who don't trust PayPal and many of my male customers use Money Orders for some reason. I still accept checks, MO and well concealed cash in my online store in addition to PayPal and feel that offering a variety of payment options is a smart tactic for any business owner. In fact, I do better from buyers who pay with the old traditional payments because there is no fee taken out for processing the payment, so it helps my bottom line.

I understand that eBay is directing money into its coffers by this move, but it is penalizing sellers with more fees that undercut any profitability left in the eBay marketplace.

Carolyn Martin |carolynsttAT NOSPAMsbcglobal dot net

9/29/2008 10:37:16 AM (Eastern Daylight Time, UTC-04:00)

I agree that ebay is making a error in judgment. I was head of operations for a smaller catalog company for 7 years. A catalog runs mainly on credit card transactions, however, we also processed over 100 purchases daily that were check and money order. Our small company would have lost revenue had we eliminated this avenue of payment choice. Ebay will lose revenue, in my opinion.
I have been a buyer and seller on ebay since late 2003. I don't agree with their fees either, they have become excessive over the years. They want us all to start with a low opening bid "to generate interest and competitive bidding" so they say. I have lost money on several items by the time ebay and paypal have finished with my transactions using the "low opening bid" they promote. I have a few more items from closing my area in an antique mall to dispose of and then I'm done. I don't see any problem being a buyer if I really need the item and this is the only place I can find it.
When ebay decided that sellers had no ability to leave negative feedback on a buyer that was bad enough! If a buyer opens a dispute in paypal for non-receipt of item, the seller has no way of responding to paypal to give shipping and tracking information. We lose the money, and only can hope the buyer is honest and closes the dispute when the item is received.
Ebay is taking a thriving business and "fixing" it into the ground.

Betty Rader |raderzrulzAT NOSPAMgmail dot com

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