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Wednesday, April 05, 2006

eBay Bans Cash Payments

Bay has officially outlawed cash payments among its 100 million members. The auction site has begun deleting listings from sellers who offer to accept cash, saying that these sellers tend to be involved in scams.

"The U.S. Postal Service tells us it's unsafe, and now eBay is telling everyone that it is unsafe," said Matt Halprin, eBay's global policy VP. "So if a seller solicits or encourages offers to accept cash, [they are] encouraging unsafe payment methods and we do remove that seller's listing."

eBay managers approved the policy in October, but the change wasn't widely publicized or enforced until this week. Recently, several longstanding PowerSellers who have traditionally accepted cash complained that eBay is trying to force them to accept PayPal. eBay purchased the payments company in 2002, and is aggressively promoting its use.

After a rash of fraud last year, eBay and other sites such as warned buyers against paying for expensive items with non-reversible bank wire transfers. In many cases the fraudulent sellers posed as U.S. residents, but were actually outside the U.S. and never shipped merchandise after collecting the payments.

Some eBay sellers offering heavy or bulky merchandise don't offer shipping, and require buyers to pick up their goods. Some eBayers speculate that these sellers could technically comply with eBay's no-cash policy by advertising a policy of accepting checks, then verbally offering to accept cash when the buyer arrives for pickup.

"You've got to wonder though," said one eBayer who asked not to be identified. "Is eBay going to outlaw checks and money orders next?"


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Ebay put their foot in their mouth this time as big as they are the Federal Govt is bigger and the last time I looked the Govt. made the laws. Point every bill large or small has the law printed on it "Good for all debts public or private" Ebay can't make the rules so if anyone wants to challange this call the Treasury Department.

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Anonymous said...

If a buyer is comfortable using cash, let them. Here is the thing, you sell an item for $10, you usually spend at least half that, usually more, to buy the product, then ebay gets all of its fees usually ends up being over $1.00 that is just for a plain jane listing, then add on Paypal fees, what do you get in return for all of your work???? That's right usually a buck or two! Complete waste of time and money! If there was another alternative, I would be there in a flash!

LocalTexan said...

I feel that Ebay is doing the right thing by not allowing sellers to accept cash. For one it is a risk for the seller since the buyer may say that payment was sent and somehow it may or may have not gotten lost in the mail. Which in return may cause a law suit for the buyer.

The only problem I had with Ebay is
taking off listings without notifying the sellers to change their method of payments accepted.
This I felt was wrong since ebay sellers are paying for their listings.

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"Ebay put their foot in their mouth this time as big as they are the Federal Govt is bigger and the last time I looked the Govt. made the laws. Point every bill large or small has the law printed on it "Good for all debts public or private" Ebay can't make the rules so if anyone wants to challange this call the Treasury Department."

How can the Government tell a Business that they have to accept cash on their site? Ebay would win that debate each and every time.

Anonymous said...

actually i doubt they would. Forcing people to use credit is against the law, the US Treasury was created by the constitution so it would be unconstitutional to refuse to accept payments from it.

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The last time real US Treasury Notes were issued was under Kennedy.

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Anonymous said...

Nobody gonna refuse the cash ,even with it risk in the shadow of ebay expensise ,wich in the end make the seller just like any employer eating the leftover after his employee finished the dinner.

Anonymous said...

what amazes me is how in all of the new bloggs that have sellers ranting and raving about feedback, paypal etc... seem to fail to realise that EBAY doesn't want or need the mom and pop sellers anymore. they are going retail.
just read the stock pages and find out for yourself.

they are changing because of alliances with major retailers like
jc penny, circuit city, best buy, wal mart etc.

after all why would some one go and spend $500 for an item in best buy that they can get on ebay for $75?

ebay WAS mom and pop's way of getting back at the major retailers whom came and took away all their small businesses in the first place.

now you see the mom and pops loose again!

ebay also can not handle the huge volume of liability of all those users and there hundreds of listings each.

you see, ebay decided rather than just kick every one off and get sued by thousands, they'd just make it so every one would leave.

and that is exactly what's happening.

the problem is that every one is going to 50 different auction sites and now the customer base is GONE.

you can find all this info on the yahoo finance pages.

It's no secret. Jerry Donahoe even had a press confrence stating just as I have mentioned.

for a good ebay hating time, check out my youtube video

Anonymous said...

Over the years ebay has increase their piece of the pie more and more and this is just a more creative way of making sure they get every crumb. With the ban of money orders and all the other new rules eBay has abandoned the core of what made then great. Just look at their stock prices, they cannot blame it all on the recession. I am seeing long time successful sellers leaving ebay in droves and heard of many who are planning to pack their bags right after the holiday. There are many other attractive competitors poping up like Bonanzle, eCrater, IOffer and the only plus ebay has over them right now is heavy traffic, but that will change over time as well...Personally I have been selling on ebay since 2002 with 100% positive feedback over 6000, but I have lost faith that they can turn this around this time so I am in the process of relocating as well.

Anonymous said...

Me, I hate anything like paypal. If I wanted an item bad enough that I couldn't pay by cash, I'd get a prepaid visa card. Usually, when I ask a TRUSTWORTHY seller and ask them if they'll accept cash, the common answer from a good seller is:

"Yes, by all means, but I would encourage you to use Postal Order instead. I will accept cash though."

When I get this, I tell them they will receive a 1st class payment of cash. I feel comfortable with cash, seeming as the thing I buy are never really more than about £5 so I have nothing to worry about at all.

Anonymous said...

WHEN---- E-Bay said no more United States Postal Money Orders I think they are trying to say they now run the World. They are looseing alot of Buyers who do not deal with credit cards or Their own company Pay-Pal their Losssss

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Anonymous said...

As a seller with over 1,000 feed backs I stopped selling on ebay because they pulled my auction for accepting money order or checks. This is America and I as a corporation should be able to accept the payment I would like not be told by Ebay or anyone else how to run my company. They are wrong and we are losing our Freedom of Choice. Wake up America?

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