eBay’s Australia Experiment: Ban All Payment Methods Other Than PayPal

Written by Evan Schuman
April 13th, 2008

As of June 17, anyone in Australia buying from eBay online will be told: "PayPal" or "Forget It, Pal."

With the exception of in-person pickups and cash-on-delivery, plus a handful of large-ticket items (specifically cars, motorcycles, aircraft, boats, caravans, trailers, commercial trucks, services, real estate and businesses) for sale, sellers will be required to offer eBay-owned PayPal as a payment method by May 21, in anticipation of the June 17 ban on anything else.

"eBay is banning sellers from using their own merchant credit card accounts (even) if they have them," said a story on "Visa and MasterCard (will be) accepted only when processed through PayPal."

That story quoted eBay spokesperson Nichola Sharpe saying that the payment limits apply initially only to eBay in Australia, but that may change.

"There are no plans to go to a PayPal-only model for eBay in the U.S. and we haven’t announced any other markets at this time," she said, adding that eBay will evaluate the impact of eBay Australia’s new requirements. "If we think these changes will significantly improve the buyer experience, we may expand them to additional segments of sellers or categories."


One Comment | Read eBay’s Australia Experiment: Ban All Payment Methods Other Than PayPal

  1. rick Says:

    Great story, great reporting, very true. The reason beching this is simple.

    Sales and stock prices for the giant eBAY are TUMBLING FAST.

    Sellers, buyers and just about everyone is FED-UP with the over-controlling giant called eBay. A WORLD WIDE BAN ERUPTED that seems to STILL BE LASTING after the gian announced after 3+ yeras of allowing digital deliveries that it is now ILLEGAL. And after announcing that only a buyer can post negatives for all the sellers, even, buyers who dont pay or extort goods in exchnage for feedback. Fair, Right?

    Now, they force PAYPAL down everyones mouth.

    THey also are engaging in FOREIGN GAMBLING thru paypal while Making it ILLEGAL to use paypal in the US. Fair, Right?

    Unfortunately, there are just too many people out there that have become REALL FED-UP with the overcontrolling giant eBay and have decided to take their items elsewhere, both digital and non-digital, even some buyers are part of the BAN, they are all JUST FED-UP.

    Sales are dropping, Stocks of eBay are dropping, some off by as must or more than 38%

    That is why eBay giant is now scrambling to find money, Gambling, Increased Fees, whatever.

    However, many users, who have built steady businesses on the eBay model have come to realize that they cant rely on building anything on such a SHAKY FOUNDATION of the eBay giant.

    Like the world tade centers, the CORE OF eBAY has an OPEN WOUND, just like the big plane that crashed right through the trade centers….

    …. its only a matter of time before eBay comes crashing down and there is ANOTHER, BETTER, WORLDS LARGEST MARKETPLACE, no longer eBay!


StorefrontBacktalk delivers the latest retail technology news & analysis. Join more than 60,000 retail IT leaders who subscribe to our free weekly email. Sign up today!

Most Recent Comments

Why Did Gonzales Hackers Like European Cards So Much Better?

I am still unclear about the core point here-- why higher value of European cards. Supply and demand, yes, makes sense. But the fact that the cards were chip and pin (EMV) should make them less valuable because that demonstrably reduces the ability to use them fraudulently. Did the author mean that the chip and pin cards could be used in a country where EMV is not implemented--the US--and this mis-match make it easier to us them since the issuing banks may not have as robust anti-fraud controls as non-EMV banks because they assumed EMV would do the fraud prevention for them Read more...
Two possible reasons that I can think of and have seen in the past - 1) Cards issued by European banks when used online cross border don't usually support AVS checks. So, when a European card is used with a billing address that's in the US, an ecom merchant wouldn't necessarily know that the shipping zip code doesn't match the billing code. 2) Also, in offline chip countries the card determines whether or not a transaction is approved, not the issuer. In my experience, European issuers haven't developed the same checks on authorization requests as US issuers. So, these cards might be more valuable because they are more likely to get approved. Read more...
A smart card slot in terminals doesn't mean there is a reader or that the reader is activated. Then, activated reader or not, the U.S. processors don't have apps certified or ready to load into those terminals to accept and process smart card transactions just yet. Don't get your card(t) before the terminal (horse). Read more...
The marketplace does speak. More fraud capacity translates to higher value for the stolen data. Because nearly 100% of all US transactions are authorized online in real time, we have less fraud regardless of whether the card is Magstripe only or chip and PIn. Hence, $10 prices for US cards vs $25 for the European counterparts. Read more...
@David True. The European cards have both an EMV chip AND a mag stripe. Europeans may generally use the chip for their transactions, but the insecure stripe remains vulnerable to skimming, whether it be from a false front on an ATM or a dishonest waiter with a handheld skimmer. If their stripe is skimmed, the track data can still be cloned and used fraudulently in the United States. If European banks only detect fraud from 9-5 GMT, that might explain why American criminals prefer them over American bank issued cards, who have fraud detection in place 24x7. Read more...

Our apologies. Due to legal and security copyright issues, we can't facilitate the printing of Premium Content. If you absolutely need a hard copy, please contact customer service.