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Wed Dec 19 2007 20:19:43

BidPay Closing Operations

By: Ina Steiner

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If you haven't heard, today BidPay announced it is shutting its online payment service. I may have jinxed it - in writing about Amazon's new Pay Now buttons on Friday, I wrote, "There hasn't been this much competition for online payment services that could be used by small online sellers in a long time." mea culpa

The beauty of BidPay, of course, was that eBay allowed its sellers to accept it. Although, ever the ungracious host, eBay only protected buyers for transactions paid for with its own payment service, PayPal. (Since buyers used credit cards with BidPay, they did get protection.)

Sellers listing off-eBay still have choices (including Google Checkout and Amazon Payments), but for eBay.com sellers - especially those who just won't use PayPal - this is a major setback.

Full details in Thursday's newsletter, along with news of another industry closure. (How's that for a teaser?) 




Comments (43) | Permalink

Readers Comments

BidPay Closing Operations   BidPay Closing Operations

by: LapisLee

Wed Dec 19 21:01:31 2007

Once again eBay has screwed us all. I knew this would happen.

BidPay Closing Operations   BidPay Closing Operations

by: Harry Dick

Wed Dec 19 21:12:06 2007

SCREW EBAY AND BOYCOT THEM!!!

BidPay Closing Operations   BidPay Closing Operations

by: Starr

Wed Dec 19 21:49:15 2007

How is this Ebay's fault?  

BidPay Closing Operations   BidPay Closing Operations

by: Carol

Wed Dec 19 22:08:06 2007

I will NOT use PAYPAL no matter what!  I liked BidPay but refuse to use PayPAL!
Discusting news!

BidPay Closing Operations   BidPay Closing Operations

by: Eric

Wed Dec 19 22:20:38 2007

Does anyone have any idea why they're ceasing operations? I thought Cybersource was doing really well with it's Bidpay business unit.

BidPay Closing Operations   BidPay Closing Operations

by: bonni

Wed Dec 19 22:26:23 2007

Ebay, the ungracious host. That sums up a great deal about eBay quite succinctly.

BidPay Closing Operations   BidPay Closing Operations

by: LapisLee

Wed Dec 19 22:51:25 2007

Electronic payment processor CyberSource Corp. said Wednesday that BidPay.com, its online auction payment processing subsidiary, will stop operations on Dec. 31. The company did not disclose a reason for the shutdown.

CyberSource predicted it will record one-time charges of about $1.7 million to $2.7 million in its fourth quarter for the shutdown. The company said $300,000 of this amount will affect its future cash balance.

Shares of CyberSource rose 27 cents to $17 in aftermarket trading after rising 26 cents during the regular session to $16.73.

BidPay Closing Operations   BidPay Closing Operations

by: LapisLee

Wed Dec 19 22:56:22 2007

CyberSource bought BidPay.com in March 2006 from First Data, which shut the site down in December 2005 when it had 4 million registered users. The deal was valued at about $3 million, including cash outlays totaling nearly $2 million and assumption of tax liabilities. CyberSource relaunched the site three months later.

In its most recent financial filing, CyberSource reported that BidPay.com revenue totaled $120,000 and generated losses in its fiscal 2007 third quarter. That was down from $173,000 in sales in the fourth quarter of 2006, when it had 250,000 registered users.

BidPay Closing Operations   BidPay Closing Operations

by: Dave

Wed Dec 19 22:56:47 2007

BidPay was a substantial portion of our non eBay payment methods, little came from eBay sales where Paypal seems to dominate for obvious reasons. Bidpay will be no loss as far as our eBay operations are concerned.

BidPay Closing Operations   BidPay Closing Operations

by: LapisLee

Thu Dec 20 00:02:44 2007

My Paypal account was closed without further chance of appeal in June 2006 after a competitor placed one of the unknown 'banned words' in the Reason line of the PayPal payment form after making a small purchase. Since I was out of town and did not return the small sum within the required 72 hours of receipt, I lost my PayPal account irrevocably. My business lost 50% sales revenue instead of doubling every month as it had for the past six months in a row.

BidPay Closing Operations   BidPay Closing Operations

by: Benny

Thu Dec 20 01:39:20 2007

Got my closing notification email today from BidPay and it was like reading a nightmare...I too refuse to use Papal and my auctions where doing well with the Bidpay payment method...cant believe CyberSource was losing money with BidPay... I use ACTIVA auction software with my ebay listings and I just now read they are starting an auction payment method... wonder if eBay & Paypal will muscle them out of business ?  

BidPay Closing Operations   BidPay Closing Operations

by: Sue @ TameBay

Thu Dec 20 05:01:35 2007

That's a great shame - I used to use BidPay a  LOT before PayPal was even thought of. Though like most of the rest of the world, I haven't used them at all since I got a PP account - so I guess this doesn't come as any great surprise.

BidPay Closing Operations   BidPay Closing Operations

by: jsicolts

Thu Dec 20 06:13:53 2007

that's too bad. Once in awhile a buyer liked to use bidpay for a variety of reasons. Paypal is a tool for ebay ovouisly and will only get worse screwing more & more sellers.

BidPay Closing Operations   BidPay Closing Operations

by: Mark S. Hutchins

Thu Dec 20 07:20:56 2007

This is just another example of unfair competition, the fox is watching the hen house now.

BidPay Closing Operations   BidPay Closing Operations

by: LapisLee

Thu Dec 20 08:07:12 2007

eBay claims Paypal is the company's crown jewel, always profitable and hugely successful. If that is true then why do all competitors fail? Does success only scale up in this business?

Common sense tells us that if a business process is profitable then the process itself should be profitable for both small and large players with the only difference being the number of zeros on the bottom line.

I’d like to know BidPay quit because they truly couldn’t make a profit? If so, does that mean that Paypal is really that much better at it or is there something I’m missing entirely? There is something rotten in Denmark.

BidPay Closing Operations   BidPay Closing Operations

by: forget it

Thu Dec 20 09:31:33 2007

Use Paypal? Don't leave a penny in your account. Paypal can shut your account down without any good reason and for any reason they feel. Some protection.

BidPay Closing Operations   BidPay Closing Operations

by: Dr. V K Pandey

Thu Dec 20 10:03:08 2007

It is a great loss for buyers from smaller countries which still are not on PayPal list. Our only option was BidPay. I am really sorry to see BidPay go. I am not particularly against any company what other option is left for people living in smaller countries?

BidPay Closing Operations   BidPay Closing Operations

by: Mikey

Thu Dec 20 10:34:36 2007

$127k of Rev in the 3rd quarter, the company was obviously being shut down because it doesn't make enough to support even one staff member.

BidPay Closing Operations   BidPay Closing Operations

by: John

Thu Dec 20 10:38:23 2007

Buyers love PayPal. After all, where else online or off do buyers get to purchase merchandise, then look, touch, smell and taste it and then decide to keep it or send it back for a full refund including shipping? It don't get no better than that. The sellers keep accepting it so PayPal will keep serving it up while complaining. Go figure.

BidPay Closing Operations   BidPay Closing Operations

by: Joe

Thu Dec 20 10:56:19 2007

Paypal is a corrupt monopoly that is not federally regulated and the majority of their members do not know that.
NEVER leave money in your paypal account, they will freeze your account without any notice and collect interest off of it for up to 6 months.  They froze $30,000.00 of mine for 6 months because of a bankruptcy I had 4 years ago which almost ruined my business. The three prior years I used paypal I had no disputes or chargebacks and did $100,000.00 + in sales thru ebay and paypal annually. I guess to paypal that meant nothing.
Why the government hasn't done anything about their corrupt practices is beyond me. Check out the website paypalsucks.com for further info on how paypal will screw over anyone.
I'm sorry bidpay is shutting down because that gives paypal more business and more people to screw.
Auctioncheckout is another payment method for those of you that relied soley on bidpay, it has been working great for me.
 

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