eBay Changes Accepted Payment Methods

Wednesday, 20 August 2008 at 5:15 am Pacific USA Time.

RBH of the ebayinkblog posted it here, and it’s also over here, so it must be OK to start talking about this!

eBay is announcing today that it’s changing what payment methods can be accepted by sellers. To me, the announcement has two main components.

1) No more paper money. No checks, no money orders. I am not too sad to see these go. When I used to be more of an eBay seller, I stopped taking those a long time ago. I found a check for $16 once bounced on the 16th calendar day. That’s three weeks. So I can hold your check for a month if you want to pay that way, but that made no sense. Other than USPS money orders, I felt like most money orders I got were things I could have made in Photoshop in 1993.

I am not sure if checks and money orders are huge areas of fraud, but they have the potential to be for any seller who ships say the day after they deposit these. If they turn out fake or the check is bad, you may not know for WEEKS. That’s bad since you then have little or no recourse.

So my heart is not broken over this. Anybody who wants to pay from a bank account can send a PayPal e-check. I think the only potential downside here are sellers who like to get money orders in USD from international customers so that they don’t have to deal with potential PayPal or credit card fraud.

2) eBay is going to start highlighting online payment services and systems other than PayPal. So for those who want or need an alternative to PayPal, they are out there. eBay may not be in the biggest rush to snuggle up to any Google or Amazon payment system, and that makes sense. You can’t pay my company with a credit you have from a company who claims to compete with us. :) But other payment services are out there. And it means that the people commenting in the ebayinkblog that it’s PayPal only are wrong. It’s credit cards, PayPal, and some other services.

ProPay seems to be the first that eBay is highlighting. The transaction rates seem higher than PayPal, and they look higher than what I pay for a merchant account. But again, if you don’t want PayPal or can’t use it, ProPay is certainly an option.

PayPal turned down our invite to our RocketPlace conference next month. We’re hoping ProPay will come. :)

We’ll be discussing this on our live talk radio show tomorrow, and hope to include an interview with ProPay. Make sure you listen and call in live with your questions and comments!

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Categories: Announcements

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One Response to “eBay Changes Accepted Payment Methods”

  1. Brandon Crotts says:

    ProPay will be a great new option for eBay users. Right now we only offer a merchant account, but at the end of September we will be announcing a new special account for our eBay customers. ProPay charges a small annual fee, but we offer several features and will help our customers fight against fraud. You can check more out at http://propay.com/company/eBayAnnouncement.aspx.
    We know that ProPay will be refreshing for many.