Question
A must read!
Editorial: Is eBay's New Payment Policy about Safety or Competition?
By Ina Steiner
AuctionBytes.com
October 19, 2005
Major eBay policy changes are often greeted with skepticism from its users. When eBay limited communication between buyers and sellers to its own email-messaging system due to "trust and safety" concerns, some believed it had more to do with eBay's concerns over off-eBay transactions than with safety.
Last week's announcement that eBay was banning sellers from listing online payment services in their listings unless specifically allowed by the auction site was a case in point (http://auctionbytes.com/cab/abn/y05/m10/i17/s01). eBay's own PayPal payment service is on the approved list along with credit cards, bank transfers and checks and money orders. Some AuctionBytes readers believe the new policy may be a preemptive way for eBay to ban sellers from accepting any payment service that may be forthcoming from Google.
But, as in other controversial policies, eBay cites member-safety and fraud concerns as the reasons for the decision. And as always, it's hard to argue with the idea of making the site safer. (eBay continues to claim PayPal is safe - the new Safe Payments policy says PayPal "offers buyers and sellers industry leading protection against fraud, chargebacks and theft of financial data." What it fails to mention is that both buyers and sellers are vulnerable against trading partners that exploit loopholes in PayPal protection policies.)
While eBay maintains that transactions are between buyers and sellers, and does not get involved in disputes or fraudulent transactions, it is now limiting payment services that sellers can accept. An AuctionBytes reader wrote, "Does dictating payment forms cross over the line if eBay is just a venue?" eBay has used the "just a venue" principle to limit its liability for fraud that takes place on its marketplace.
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-Jim
Answer
I was getting ready to post a link to the Auctionbyte's editorial, thanks, Jim.
This is, to me, an extemely hot topic as I feel eBay has made a major boo-boo and crossed the line from being 'just a venue'.