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Sun June 28 2015 17:04:37

PayPal to Remain the Enforcer for eBay

By: Ina Steiner

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.

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Readers Comments

PayPal to Remain the Enforcer for eBay

by: PompatusF.Love

Mon Jun 29 17:16:03 2015

When I sold on eBay, I just considered PayPal a necessary evil. I never had a particular problem with them, but did consider their holds on funds quite a sleazy practice. Now, with the mandatory 6-month return policy, it is clear I cannot risk PayPal as a small seller...in any venue.

What a shame. I was hoping that after the split, I'd be able to utilize their service elsewhere and trust them with my money. But with Donahoe jumping over, it all spells disaster for small sellers.

Try as they might, no one seems to be able to really separate these two entities. Now, I'm afraid we'll just have TWO evil twins. They're both still colluding. They'll both continue to stink.

PayPal to Remain the Enforcer for eBay

by: iheartjacksparrow

Mon Jun 29 17:28:47 2015

@toolguy - I just checked and for Mastercard the chargeback time limit is 120 days. But as Deltamaster pointed out, a credit card company is going to give the seller a chance to defend himself/herself with actual evidence, not just say, "Sorry, you're a seller, you must be evil. And it's the cost of doing business." Actual honest businesses are going to hear both sides of the story, not just rule on the assertions of one party.

PayPal to Remain the Enforcer for eBay

by: GrumpyHam

Mon Jun 29 17:52:35 2015

by: Kitty Ninja

Mon Jun 29 17:57:24 2015

Comet -- > ''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.''

File a complaint with the Federal Trade Commission (www.ftc.gov). Because eBay and Paypal are jointly owned they ''know'' how much money you have in your account. A CONFLICT of interest. It's like going to a grocery store and having someone say ''NO you can't pay with a credit card!! You have CASH in your account, and you have to PAY with CASH!!). Paypal wants to avoid paying the credit card fees. I drained my Paypal account and ONLY pay with a separate account that has a credit card tied to it now!!

PayPal to Remain the Enforcer for eBay

by: Philip Cohen

Mon Jun 29 19:49:49 2015

@Comet, Kitty Ninja,

You’ve both lost me. Why would anyone want to not use any funds left in a PayPal account before drawing on funds from elsewhere? Why would anyone leave funds in a clunky, unprofessional, unlicensed, unregulated, non-FDIC insured, “PreyPal” faux bank account, period?

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

PayPal to Remain the Enforcer for eBay

by: Kitty Ninja

Tue Jun 30 01:31:37 2015

@Philip Cohen

I used to leave funds in the Preypal account to cover any returns/refunds that ''might'' occur. By paying for items I purchased through eBay with the cc it is easier to charge back the cc (if I ever need to...have never had to do it) than to deal with eBay/Preypal. Now, if I ever sell on eBay again (and in the future when I get my other venues set up to sell on) I will pull ALL funds OUT of Preypal (not that there are any funds right now because I've closed my store). If eBay tries to charge my credit card for returns I can fight that too, as I haven't authorized Preypal to charge my cc in that manner!!

PayPal to Remain the Enforcer for eBay

by: Volvo351

Tue Jun 30 09:42:52 2015

If you sell on C/L or any other platform, do NOT accept PayPig! If the buyer insists, then YOU must insists, then YOU must insist on very specific conditions. First, the payment must be made as a "PERSONAL" transfer. 2nd, insist that a memo be included with wording that DOCUMENTS that it's personal, not for an item purchase. If the buyer doesn't want to comply with these terms, which are for YOUR protection, then don't deal with him. Odds are certain you'd end up losing the money.

PayPal to Remain the Enforcer for eBay

by: The End

Wed Jul 1 00:04:57 2015