eBay Inc. (NASDAQ:EBAY) has been taking away many things from their users. Sellers are no longer able to leave feedback for buyers. eBay has opened the flood gates for fixed price listings for sellers like Buy.com. And now eBay is giving less options to pay for and accept payment for goods. Starting next month, buyers and sellers in the U.S. can only use PayPal for transactions.
Checks and money orders will no longer be acceptable. This will be the case for almost all of the items. Items with exceptions includes cars, real estate, industrial equipment and other mature audience goods [Ars Technica].
“We’re making this change to better meet buyer expectations for a consistent, more secure checkout experience on eBay,” stated part of the FAQ regarding the update. “This should increase buyer confidence in shopping on eBay, which should result in more buyers and increased sales for sellers. The change will directly benefit sellers by making payments faster and more reliable, enabling sellers to ship more quickly and increase buyer satisfaction.”
eBay does not allow Google Checkout or Checkout by Amazon.com as payment because they directly compete with the auction company itself. Payments through ProPay will also be accepted. eBay is also preventing checks and money orders to protect sellers from fraud. I’m sure that many power sellers have been the victim of bounced checks sent for eBay goods. I think this is a good move because PayPal serves as a pretty good escrow service. PayPal was $1.5 billion well spent by eBay.