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Sun June 28 2015 17:04:37

PayPal to Remain the Enforcer for eBay

By: Ina Steiner

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eBay and PayPal's breakup will be completed by July 17th, but that doesn't mean the cooperation between them is over. Thanks to operating agreements between the two companies, eBay will be penalized if the amount of sales processed by PayPal falls, giving it an incentive to keep PayPal a preferred payment method on the site. And PayPal will continue its role as enforcer when it comes to dealing with eBay users.

PayPal sent a letter to sellers today with the subject line, "PayPal services updates." It's a follow-up to a notice sent in May informing users of changes to PayPal's user agreement that take effect on Wednesday, July 1st.

"The only change you should experience is that you'll now contact eBay and PayPal separately regarding your respective accounts," PayPal said. However, it also said eBay buyers will now have the opportunity to raise a claim with PayPal after they have already opened a claim with eBay. 

We received a letter today from a reader who forwarded the PayPal email - they expressed their concern about that provision, writing, "With the recent extension of the PayPal buyer's claim filing time-frame to six months from the original transaction date, the following passage from the aforementioned policy update places eBay sellers at humongous risk."

PayPal's letter said its policy around holds for sellers' eBay behavior would continue as they are today. Here's how PayPal explains it on its website:

Section 10.5(a) This section currently allows PayPal to use information it receives from third party partners such as eBay to place a hold on a user's PayPal account. This section is being changed to reflect that PayPal may use information it receives from any third parties including eBay to place a hold on a user's PayPal account.

PayPal also explains on its website that it will continue to debit users' accounts for past-due amounts owed to eBay (section 5.4 of the PayPal user agreement) or for claims lost through eBay Money Back Guarantee disputes (section 10.1c of the PayPal user agreement).

But if you have an eBay-related question, don't ask PayPal. In Sunday's email, PayPal wrote in its FAQs, "Question: What shall I do if I have questions on eBay? Can I still contact PayPal? Answer: For eBay-related questions, please contact eBay."

Some sellers are apparently just learning that eBay CEO John Donahoe will head the board of directors at PayPal once the split is official. That prompted one seller to sign up for one of the few alternative payment methods allowed on eBay, which generated a lot of interest in a thread on the eBay discussion boards.



Comments (28) | Permalink

Readers Comments

Perminate Link for PayPal to Remain the Enforcer for eBay   PayPal to Remain the Enforcer for eBay

by: sasikat9 This user has validated their user name.

Sun Jun 28 18:21:28 2015

Coming in the near future....Feedback with DSR's for Paypal.  Compliments of the HO

Perminate Link for PayPal to Remain the Enforcer for eBay   PayPal to Remain the Enforcer for eBay

This user has validated their user name. by: Rexford

Sun Jun 28 18:45:11 2015

Anytime you see a user agreement update from either of these companies, get ready for 1000 more lashes.

Both companies are despicable.

ebay and PayPal--enabling and abetting fraud at every turn.  Claims made 6 months after?  The thieves and fraudsters must be salivating over this.

Perminate Link for PayPal to Remain the Enforcer for eBay   PayPal to Remain the Enforcer for eBay

by: gizmo This user has validated their user name.

Sun Jun 28 20:59:55 2015

Ebay is a scary place to sell these days. Let alone having your own personal enforcers. Sure makes pass the buck a lot easier. Payments need to open up to other online money movers. Dare I call them a bank.

If it smells , walks , & quacks like a quack , its likely a quack.

Anything is better than any Co. associated with J.D. A no brainer.  

Perminate Link for PayPal to Remain the Enforcer for eBay   PayPal to Remain the Enforcer for eBay

This user has validated their user name. by: Philip Cohen
Web Site

Sun Jun 28 21:32:03 2015

So, what’s new at eBay/PayPal?, Absolutely nothing, apparently …

Let’s face it, in five years time when the current exclusivity agreement between these two unscrupulous commercial entities eventually expires, they both most likely will be by then on their knees. Methinks by that time Carl Icahn will be then applying pressure to get PayPal’s Johnny Ho to agree to allow eBay to re-buy the dying “PreyPal” operation (for 99c) so that they can both better continue underwriting each others’ atrophying revenues …

Frankly, it’s about time small online merchants, that can afford to do so, spoke to their real bank about a professional credit card merchant account (MasterPass or Visa Checkout), and dumped the clunky, unscrupulous “PreyPal” down the toilet—where it so rightly belongs …

“Money, not morality, is the principle of commerce …”—Thomas Jefferson.

That quote certainly applies to “PreyPal” …

And, not even the criminal code gets in the way of commerce at eBay Inc. … http://bit.ly/11F2eas

The eBay executive suite—where the incompetent mingle with the disingenuous, the malevolent and the outright criminal, and the just plain stupid … http://bit.ly/11F2eas  

Perminate Link for PayPal to Remain the Enforcer for eBay   PayPal to Remain the Enforcer for eBay

by: pace306 This user has validated their user name.

Sun Jun 28 22:52:15 2015

Is there anyone left on this planet who still thinks that eBays new CEO will be any better for sellers then the old one?

Geez, the THEFT MACHINE continues on its merry way, swallowing any seller who dares try to get an even deal selling on eBay or using Paypal.

Yes this will make people feel MORE SECURE using Paypal .... LMFAO ... and who would "those people" be exactly? Which set or subset of criminals is this aimed at?

BTW, Payla had ALWAYS told me that a seller COULDNT get hurt by double jeopardy. Once a buyer made a case in either Paypal OR eBay and lost - that was it.

This is worse then "judge shopping", since here you keep getting bites at the apple regardless of the outcome(s).

Its pure theft, its pure abuse and SHAME on Paypal for being part of it.

Amazon now has 60-70% of the ecommerce market (based on industry magazines & the sheer lack of eBay sales) .... do they think this will help?

Is once again finding ANOTHER WAY to screw your sellers really a good business plan to help your flagging company?

Perminate Link for PayPal to Remain the Enforcer for eBay   PayPal to Remain the Enforcer for eBay

This user has validated their user name. by: Ric

Sun Jun 28 23:43:35 2015

Everyday users will be the casualties as the billionaires manipulate these two companies stocks and multiply their wealth.

This change is not about making any or either company better or more responsive to their customers - far from it...

This "breakup" is only about the financial gains coveted by billionaires like Ichan and multi millionaires like outgoing CEO John Donahoe.

Perminate Link for PayPal to Remain the Enforcer for eBay   PayPal to Remain the Enforcer for eBay

by: Steevo This user has validated their user name.

Mon Jun 29 01:04:02 2015

Like I said before, it's better to just avoid Paypal from now on.  
With them colluding with ebay and the buyers, it's not like anyone there is following reasonable business rules.

It's just not reasonable to have returns allowed for six months.

No one does that, especially on used stuff being sold at large discounts, which is what most of ebay is. That was the advantage ebay had in the old days. You could get something you couldn't find anywhere!

Except for the $1.99 cellphone car chargers shipped from Red China.  Maybe those, a 6 month leash makes sense.  No, what was I thinking?  6 months? That's nonsensical!
 

Perminate Link for PayPal to Remain the Enforcer for eBay   PayPal to Remain the Enforcer for eBay

by: comet This user has validated their user name.

Mon Jun 29 02:19:39 2015

IF I keep having to BUY on other venues other than ebay I might as well NOT sell there either.

I have had to purchase things on Amazon several times in the past three weeks that I SHOULD have been able to buy on ebay--now;  it's not that no one on ebay didn't OFFER these things--but---in one case the ONLY sellers offering what I needed were in--Cyprus or China.  Say--what?  Cyprus might not even have a Government on Monday and China---well---in this case I really NEED the item NOW==not whenever China Post getsaroundtuit.

Amazon had a USA seller of exactly what I needed--AND much cheaper too.  

In the other instances--I had SUCH a hard time FINDING what I wanted ON ebay--I gave up.  Every search led me to different layouts--has any one ELSE noticed this recently?--and half of the items did not SHOW UP===until I did an OFF EBAY SEARCH and got re-directed to--ebay.  Maybe.  

On Amazon I was able to find what I needed fast and easy and payment is simple and saved--I also can CHOOSE what way to pay  and not drain my Paypal acct BEFORE I can use OTHER payment methods==this is THE stupidest thing on ebay as far as payments goes.  Why should I be FORCED to use ALL of the funds in my Paypal account --BEFORE I can use ANY other payment method?  There once was a way to NOT have to do this--if it is still viable I don't know how to use it then.

I am not at ALL looking forward to this "breakup-"  and TOTAL control at PP by The Ho---I fear what he might do to ruin what is not a very good company now.

I have had a far easier time of it getting in touch with and getting help from PP in the past-but I suspect that those days too are over.  

Going to be listing some things on eCrater--can some one PLEASE tell them that name is stoopid and not easy to remember????---but I am not holding out much hope there either.  I am hoping that Facebook gets IT'S sales site up and running SOON--with viable payment methods.  I don't (or haven't)  had the volume of sales to warrent any sort of a "Merchant account"  at a bank---so I need (like LOTS of small sellers---)  a decent way to accept payments.  Paypal was OK=--as long as they did not hold funds for stoooopid reasons--but now---not so much.  

Ebay is soon going to be only a host to sellers of "korean Fashions"  for those small enough to wear them and Chinese cell phone accessories.

Perminate Link for PayPal to Remain the Enforcer for eBay   PayPal to Remain the Enforcer for eBay

by: ignatz This user has validated their user name.

Mon Jun 29 07:14:30 2015

What a crock of you-know-what. Notice how these two thieving companies "cooperated" on every policy that is detrimental to sellers. Yet, they chose NOT to cooperate in deciding which of the two would handle buyer claims. Oh no!  In that area, they decided they BOTH would handle buyer claims?  This proves that PayPal instituted their insane 180-day dispute policy in order to cut down on the number of chargebacks.  

Well screw them.  From now on, if I have any problems with anything I purchase on ebay, I'll be using the chargeback mechanism, and not their  dispute policy.

Perminate Link for PayPal to Remain the Enforcer for eBay   PayPal to Remain the Enforcer for eBay

This user has validated their user name. by: Rexford

Mon Jun 29 07:21:33 2015

ignatz says "What a crock of you-know-what. Notice how these two thieving companies "cooperated" on every policy that is detrimental to sellers."

Yes, that has John Donahoe written all over it.

Perminate Link for PayPal to Remain the Enforcer for eBay   PayPal to Remain the Enforcer for eBay

by: Volvo351 This user has validated their user name.

Mon Jun 29 09:12:09 2015

The email spells out that you now face TRIPLE JEOPARDY when you accept PayPig for an eBay item.  First, the scammer can try the eBay "money-back guarantee." Should that fail, he files a SNAD with PayPig. If that doesn't do the trick, he goes whining to his credit card issuer.  PayPig then immedidately folds.

They might as well have run a mass market TV ad buy screaming: "Hey, get unlimited FREE STUFF on eBay!"

Perminate Link for PayPal to Remain the Enforcer for eBay   PayPal to Remain the Enforcer for eBay

by: RAOTFLMAO This user has validated their user name.

Mon Jun 29 09:31:01 2015

I used to take paypal on my website, it was easy and everyone trusted the service.  Over a year ago I deleted the option only accepting credit cards directly to my merchant account....did I lose sales??  Nope, customers would still ask if I accepted paypal and when I said no, they gave me their cc numbers.  Sorry but I no longer trust paypal and especially now.  

Perminate Link for PayPal to Remain the Enforcer for eBay   PayPal to Remain the Enforcer for eBay

by: RAOTFLMAO This user has validated their user name.

Mon Jun 29 09:35:24 2015

I should have also told that I still keep a paypal account to buy with, I use my credit card to purchase through paypal for the double protection and the way I look at it I have 6 months to decide if I want to keep the merchandise....after all the new coat I bought in October may not go well with my spring wardrobe....
 

Perminate Link for PayPal to Remain the Enforcer for eBay   PayPal to Remain the Enforcer for eBay

This user has validated their user name. by: iheartjacksparrow

Mon Jun 29 10:16:51 2015

Since the six-month SNAD claim process kicked in, I no longer accept PayPal in my eCrater store, just credit cards through Stripe. Last week I got an e-mail from a buyer asking why I didn't take PayPal, and that she only felt "safe" using PayPal. I explained why I stopped accepting PayPal, and she responded that she would "think" about paying another way. The next day she placed an order for two items in my store. So it is possible to wean buyers off of PayPal.  

Perminate Link for PayPal to Remain the Enforcer for eBay   PayPal to Remain the Enforcer for eBay

This user has validated their user name. by: toolguy

Mon Jun 29 11:05:20 2015

@iheartjacksparrow

I haven't heard of a single case of the 180 day return.

A poster on this forum was claiming that they had a 120 day return but no 180's.

The same 180 day return would apply to almost any credit card, that's why Paypal implemented it to come in line with all the other payment processors.

PS: My website ONLY takes Paypal. . .

Perminate Link for PayPal to Remain the Enforcer for eBay   PayPal to Remain the Enforcer for eBay

by: Mr. Me This user has validated their user name.

Mon Jun 29 12:06:42 2015

so .... a sleazebag "buyer" can file a "claim with paypal " if they are not happy with a decision made on an eBay claim."
Seems like a case of "bad cop, Bad cop"

Perminate Link for PayPal to Remain the Enforcer for eBay   PayPal to Remain the Enforcer for eBay

by: Mark4 This user has validated their user name.

Mon Jun 29 12:09:45 2015

so glad I dumped ebay and paypal and went to amazon...

Perminate Link for PayPal to Remain the Enforcer for eBay   PayPal to Remain the Enforcer for eBay

by: pace306 This user has validated their user name.

Mon Jun 29 13:07:52 2015

Tool - for what normal sale on eBay is 120or 180 days needed?

eBay and USPS's pc coordinate delivery dates and times - why would Paypal (who has complete acess to eBays systems) need those longer time periods?

"you" need 3+ months to figure out if you got some thing or not? Have amnesia? Rip Van Winkle?

This 180day issue is NOT supposed to be for warranty issues - yet it seems that thats where its going.

So I ask again - why does a company in 2015 who has DIRECT ACCESS to USPS computers need 180 days for chargebacks ... unless its NOT for INR issues?

Perminate Link for PayPal to Remain the Enforcer for eBay   PayPal to Remain the Enforcer for eBay

by: Deltamaster This user has validated their user name.

Mon Jun 29 13:22:36 2015

"The same 180 day return would apply to almost any credit card, that's why Paypal implemented it to come in line with all the other payment processors."


The difference between Paypal and the Credit card company is that if a buyer files a chargeback with the credit card then the company contacts the seller and aloows them the opportunity to defend the claim.

Paypal, on the other hand may offer the seller the appearance of defending the claim BUT will just tell the credit card company that the seller has agreed to go ahead and pay up.

With your merchant account YOU control the process.  With Paypal, PAYPAL controls the process and will not expend any manhours to defend the process the way that you would yourself.

Manhours cost money and why should payal pay someone to defend a case when it is not Paypal's money that is on the hook?

Perminate Link for PayPal to Remain the Enforcer for eBay   PayPal to Remain the Enforcer for eBay

by: ebay refugee camp This user has validated their user name.

Mon Jun 29 14:12:25 2015

So this is in effect now already, but it looks like it has more teeth. Donahoe is still in charge so this stuff is being done by the seller hater who is using his ebay 100 percent buyer money back guarantee to enable bad buyers with a honest seller's moey so he wants to do a double wammy to make sure ebay does not have to pay.
Ebay needs to scrap the 100 percent guarantee as soon as Donahoe lleaves

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