EcommerceBytes-NewsFlash, Number 1065 - July 18, 2005     2 of 4

PayPal Tells eBay Sellers They Must Accept Credit Cards

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Beginning August 19, 2005, sellers who offer PayPal as a payment option for their eBay listings must accept all forms of PayPal payment. This includes payments made via PayPal account balances, bank accounts and credit cards. Some sellers have refused credit-card funded PayPal payments over fears of unjustified chargebacks months after transactions have ended.

PayPal offers a free "personal" account, but those users are not allowed to accept debit or credit card payments. This means casual eBay sellers who accept PayPal for eBay listings may be forced to upgrade to fee-based accounts if buyers choose to pay them with credit cards. Premier and Business account holders pay between 1.9 percent and 2.9 percent of the transaction value plus $0.30 per transaction.

With the new policy, eBay is prohibiting sellers from communicating to buyers that they will not accept specific forms of PayPal payment. "Doing so in a listing can lead to it being cancelled, and refusal to accept a payment after the auction has ended will constitute Seller Non-Performance."

About the author:

Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. She's a widely cited authority on marketplace selling and is author of "Turn eBay Data Into Dollars" (McGraw-Hill 2006). Her blog was featured in the book, "Blogging Heroes" (Wiley 2008). Follow her on Twitter at @ecommercebytes and send news tips to

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