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Mon May 25 2009 22:31:48

Note to eBay Sellers with Credit Card Merchant Accounts

By: Ina Steiner

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eBay requires sellers who have credit card merchant accounts to use its Payflow Gateway Service (at no extra cost) to allow buyers to enter their credit card information directly and securely in eBay checkout. (Note that sellers are not required to use eBay Checkout, but those merchants who wish to use their credit card merchant account on eBay Checkout are required to use the Payflow Gateway Service.) A merchant who is going to begin using eBay's Payflow Gateway beginning in June wrote to me with concerns about what eBay and PayPal were telling him about the security features of the system.

He wrote, "What seems to me to be not widely known is that the Payflow gateway PayPal setup to be able to offer a charge card processing gateway for eBay sellers is not same Payflow gateway PayPal is already offering (in fact, many PayPal Payflow representatives are woefully unfamiliar with the eBay version; see below). It is a stripped down version, meaning the gateway has no fraud detection or prevention features and those features cannot be added even if an eBay Payflow user wanted to add them for a fee. Apparently, eBay did not spec those features as requirements or eBay and PayPal decided the eBay version of the gateway did not need them. That means, at the very least, eBay sellers that use the eBay PayPal Payflow gateway cannot require CVC numbers and use AVS on the transactions that flow through the eBay Payflow gateway.

"After spending a total of nearly two hours on the phone on four separate occasions with six different Payflow representatives, I finally received this message from Payflow support this evening: Fraud Protection is not available on the Payflow account when your partner is eBay."

I contacted PayPal and asked them some questions, here are the answers:

"Is the PayPal Payflow gateway for eBay sellers the same Payflow gateway PayPal is already offering?"
Yes.

"Does the Payflow gateway for eBay offer the same fraud detection and prevention features?"
No. eBay provides a set of strong fraud control features that best suit the individual seller. These are the same set of fraud detection and prevention features that we use for credit card fee payments to eBay. This includes velocity checks, eBay credit card blacklists, and account limits.

Please note that the seller also benefits from any fraud detection and prevention features offered by his/her credit card processor.

"Can merchants require CVC numbers and use AVS on the transactions that flow through the eBay Payflow gateway?"
Yes, by the end of June, sellers using the Payflow gateway for eBay will be able to block credit card payments that don't pass CVV2 or AVS checks. We agree this is an important control for sellers.

If you have additional questions or concerns, please post them here in the comments. You can read more about eBay's requirements around merchant accounts and its checkout system in these August 2008 FAQs.

Comments (39) | Leave Comment | Permalink
Readers Comments

Note to eBay Sellers with Credit Card Merchant Accounts   Note to eBay Sellers with Credit Card Merchant Accounts

by: fruity

Wed May 27 04:00:14 2009

also I was thinking, is payflow gateway on the channeladvisor merchants websites or going to be? Is there a way I can find out who is using the gateway, that way I can avoid them? I buy my hairdo stuffs from a CA seller, I love them I dont think Im going to buy from them on ebay anymore though, maybe their website if its non payflow. Is there anyway to know for sure? Like a logo?


Bill and Ming, do you know how to find me on twitter? tweet tweet!

Note to eBay Sellers with Credit Card Merchant Accounts   Note to eBay Sellers with Credit Card Merchant Accounts

by: Ebay Pays My Bills

Wed May 27 10:35:55 2009

Merchant Account?

Who uses one of those?

Most sellers use Paypal.

The only gateway needed is the one that leads to the Ebay web site! LOL

Really, what's all the fuss about?

Paypal has worked and worked well.

Why use anything else?

PS: It's a wonderful day to have Ebay auctions running. :-)

Note to eBay Sellers with Credit Card Merchant Accounts   Note to eBay Sellers with Credit Card Merchant Accounts

by: ebay: big bills, Slow sales

Wed May 27 13:32:04 2009

ecause Paypal sucks, is a joke, steals money from buyers & sellers, and 100% protects paypal first. Paypal is scum. Unregulated, unsafe & run thru with fraud, arrogant jackass customer service, cumbersome & ILLEGAL practices.

Note to eBay Sellers with Credit Card Merchant Accounts   Note to eBay Sellers with Credit Card Merchant Accounts

by: EventHorizon1984

Wed May 27 13:53:51 2009

''eBay requires sellers who have credit card merchant accounts to use its Payflow Gateway Service (at no extra cost) to allow buyers to enter their credit card information directly and securely in eBay checkout.''

That's not strictly true as eBay continues to waffle between required and recommended.

And for readers wondering about getting a merchant account, according to eBay:

http://news.ebay.com/fastfacts_paypal.cfm
''PayPal's Total Payment Volume in 2008 represented nearly 9 percent of global e-commerce and 15 percent of US e-commerce. ''

Meaning credit card (VISA, MasterCard, American Express, Discover, etal) and cash payments made by consumers represented 85 percent of US e-commerce and 91 percent of global e-commerce.

Long term businesses follow the money.

For example one major eBay tool seller has PayPal, AND VISA, MasterCard, American Express, Discover. Plus Reliabletools (http://members.ebay.com/ws/eBayISAPI.dll?ViewUserPage&userid=reliable
tools)
uses eBay's Direct Capital financing.

eBay celebrated eForCity (http://members.ebay.com/ws/eBayISAPI.dll?ViewUserPage&userid=eforcity
)
uses PayPal AND VISA, MasterCard.

With about 40% of payments made on eBay in 2008 not being PayPal, it appears most of the major eBay sellers use merchant accounts.

As one large seller noted, ''To not provide multiple consumer payment options is foolish and short sighted.''


''What's In Your Wallet?''
Capital One Credit Card

Note to eBay Sellers with Credit Card Merchant Accounts   Note to eBay Sellers with Credit Card Merchant Accounts

by: ebay: big bills, Slow sales

Wed May 27 14:37:48 2009

Some people don't trust paypal.
It's well known:

They will default you to payment from your bank acct, even if you want to pay by CC. many posts on Ebay boards about this fraud, which is against CC regs.

They will force buyers to provide bank info, creating this problem, if they spend too much on Ebay.

Paypal says they have buyer protection, then weasel out if it's an off Ebay sale.

Just 3 more reasons why Paypal Sucks for buyers.

Note to eBay Sellers with Credit Card Merchant Accounts   Note to eBay Sellers with Credit Card Merchant Accounts

by: angryjim

Wed May 27 15:09:24 2009

@Ebay Pays My Bills:

What is your official job title at eBay?

Note to eBay Sellers with Credit Card Merchant Accounts   Note to eBay Sellers with Credit Card Merchant Accounts

by: Ebay Pays My Bills

Wed May 27 20:03:08 2009

I am known as an: Ebay Soldier

We stand up for the right to sell freely on the Ebay web site.

Our army is large and well equiped.

We don't fare well with NARU's & ex sellers. . .LOL

Note to eBay Sellers with Credit Card Merchant Accounts   Note to eBay Sellers with Credit Card Merchant Accounts

by: LOL you're a goof

Wed May 27 21:52:51 2009

An Ebay soldier?
LOLOLOLOLOL!!

Too funny.
Tell me, what are you fighting for?
The right to be overcharged?
The right to lose items due to PP fraud?
The right to receive undeserved, unanswerable feedback?
The right to "sell" things only to find your "paypig partner" in their greed for fees allowed a bad CC to go thru and now expect you to eat the loss?
The right to get told STFU if you try and address any concerns?
I guess you're right about the soldier part, Ebay is the typical fat cat general behind the lines, while the soldier ants get shot up by bogus insane policies and friendly fire.

Note to eBay Sellers with Credit Card Merchant Accounts   Note to eBay Sellers with Credit Card Merchant Accounts

This user has validated their user name. by: Ming the Merciless

Wed May 27 22:16:02 2009

Hey guys -- don't run off ebay pays my bills.

What comic relief! He's nearly as funny as the other ebafia adolescent managers stumbling and bumbling all over themselves every week.

This guy wouldn't make buck private in a soldier ant colony.

Note to eBay Sellers with Credit Card Merchant Accounts   Note to eBay Sellers with Credit Card Merchant Accounts

This user has validated their user name. by: Bill

Thu May 28 01:19:54 2009

Fruity,

Sorry I do not use twitter. My computer is for making money and if I want to socialize I go out and see my local friends.

Sorry,

Bill

Note to eBay Sellers with Credit Card Merchant Accounts   Note to eBay Sellers with Credit Card Merchant Accounts

by: Clay

Thu May 28 01:41:34 2009

@ eBay pays my bills......"We stand up for the right to sell freely on the Ebay web site"......First off its eBay not Ebay....secondly no seller has the right to freely sell on the eBay site. You are all required to comply with their policy, so you are not free to sell unless you agree with policy. We sold with paper payments only and did an exemplary job yet we are not free to sell.....Also you may want to change that id in the near future to eBay paid my bills

Note to eBay Sellers with Credit Card Merchant Accounts   Note to eBay Sellers with Credit Card Merchant Accounts

by: Harrys

Thu May 28 02:59:06 2009

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Note to eBay Sellers with Credit Card Merchant Accounts   Note to eBay Sellers with Credit Card Merchant Accounts

by: Ebay sucks my money

Thu May 28 12:08:49 2009

You are about as free selling on Ebay as a citizen of the third reich was to protest.
Nothing comes free on Ebay, except grief from sport bidders. Heil Donuthead!

Note to eBay Sellers with Credit Card Merchant Accounts   Note to eBay Sellers with Credit Card Merchant Accounts

by: Henrietta - RedInkDiary

Thu May 28 12:24:45 2009

@angryjim

The stalwart eBay soldier's official job title is TFC or Troll, 1st Class.

If he seems a bit whacky you should make allowances for the effects of PTSD, that is Puerile Troll Suffering Delusions.

The size of his brain is probably directly related to the size of his seller account and may be inversely related to the size of his

'cough'



Note to eBay Sellers with Credit Card Merchant Accounts   Note to eBay Sellers with Credit Card Merchant Accounts

This user has validated their user name. by: Ming the Merciless

Fri May 29 00:31:36 2009

Henrietta, Henrietta! Are you saying Ebay Pays My Bills needs some Extenze or Viagra?

I think you're on to something so to speak. This company wide deficiency probably explains a lot of ebay's korporate kulture.

Note to eBay Sellers with Credit Card Merchant Accounts   Note to eBay Sellers with Credit Card Merchant Accounts

This user has validated their user name. by: Ming the Merciless

Fri May 29 00:35:03 2009

@ fruity

Sorry, I don't know how to find anyone on Twitter.

Tell me and I'll check it out. If we can use it to expose ebafia for the syndicate that it is, I'll join you :-)

Note to eBay Sellers with Credit Card Merchant Accounts   Note to eBay Sellers with Credit Card Merchant Accounts

by: fruity

Sun May 31 01:53:53 2009

Ming, find me here! twitter.com/fruithelmetcat

Note to eBay Sellers with Credit Card Merchant Accounts   Note to eBay Sellers with Credit Card Merchant Accounts

by: Tweet

Wed Jun 10 11:27:12 2009

Bill, Twitter is a tool used by hundreds or even thousands of businesses for promotion and other legitimate business purposes. But, you're so much smarter than the rest of us, I'm sure you can't waste your money-making computer time on that, can you? You just sit at your computer, post comments on this blog, and money rolls in like waves off the ocean, I'm sure.

Note to eBay Sellers with Credit Card Merchant Accounts   Note to eBay Sellers with Credit Card Merchant Accounts

by: mark

Sun Jan 3 07:13:58 2010

Its all a scam. To companys ebay and paypal  charging high fee's and then letting buyers rip sellers off!! The buyers call paypal. I never got product or product not as described. Paypal gives the cash back to thief..the buyer..and poor ebay seller has not only lost his merchandise but his money as well...Mean while while Paypal holds your money for hostage..or says you have a negative balance..Well yeah?? !@@??!! gave your money back to scammer..and now your banned from Paypal..and your paypals locked up..and your ebay customers are giving you bad feedback saying your the scammer..because some a  hole used paypals BS policies to get free merchandise!!
Its all a big F!!??@$!  scam!!
paypalsucks.com

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