|Tue June 12 2012 20:41:06|
Do Fraudsters Like eBay's Push for One-Day Handling?
By: Ina Steiner
A longtime seller wrote in with a report about eBay's new requirement that Top Rated Sellers ship items within 24 hours. He said he was told by a low-level source inside PayPal that the payments provider is not happy about the new eBay Marketplaces policy because of a rise in chargebacks caused by an increase in fraudulent transactions.
The seller wrote that, according to his source, "since eBay put the new policy in place, scammers have decided that they can order goods, get them shipped same or next day, receive them a few days later and vanish.... then a few days later come the chargebacks from the legit card holders. Its increased now, because now eBay "forces" you to ship within 24 hrs to maintain your dealer rating(s) and a large number of dealers now ship within that time frame."
While that's an unconfirmed report, the seller raised an interesting issue. Is it better to wait 24 hours before sending items to give PayPal's fraud detection system adequate time to sniff out scammers who are using stolen accounts? Especially in certain categories, such as electronics, jewelry and high-end designer clothes and accessories?
It is certainly true that eBay places certain restrictions on short-duration auctions to combat fraudulent sellers. For example, to offer a 1-day listing, you must have a Feedback score of at least 10, and sellers have reported that they are restricted from listing certain designer clothing in the auction format for less than 5-day duration.
Let us know if you've been receiving a larger amount of chargebacks for unauthorized usage than usual and if you think eBay might change its policy in certain high-risk categories.