ACCC
Well well, the ACCC is doing it’s job yet again – nice to see! First it was mod-chips (for importing games), now it’s Ebay. Ebay have tried to ram PayPal down our throats by forcing it as the *only* payment method and gleaning a nice extra 3% fee – while also forcing people to get PayPal accounts.
Sounds crap? Well the ACCC agrees (nb I linked to the ebay statement – so they try and hide their monopolistic practices by saying they are doing it all for YOUR safety and not the 3% fee…)
Here’s a less biased report. IMHO sellers should be allowed any payment method, and if forced to accept PayPal, should be allowed to on-charge the extra % fee just like any other merchant in AUS…
The ACCC info is here
It’s crap, that’s for sure. I hope the ACCC does not cave in, in the past they have been pretty good (e.g. against Sony for the PS2 modchips).
I tried to add a 2% service fee for PayPal payments on an auction once but ebay deleted them… When I complained they said it was against MasterCard rules – so I asked MasterCard and they confirmed what I thought which is that Australian Law trumps the MasterCard agreements. Ebay didn’t care.
I don’t mind eBay’s “nickel and dime” business model generally – but the fact that they own PayPal is a pretty big conflict of interest – no way would they ram it down our throats if they didn’t own it.
Most of this boils down to the fact that eBay’s PayPal unit makes an additional 2%-10% out of the Sellers Total Profit.
This eBay/PayPal Profit & Fees Calculator will show you this much more clearly.
http://pheebay.com/1/?eBayALTERNATIVESPheeCalculator
Australians Payment-wise are much more independent than their American/British/Canadian counterparts. About half of eBay AU Ozzies do not like or use PayPal. By forcing PayPal on the rest of the eBayers who refuse or don’t use PayPal, this equates to a ton of Pure Profit to the American eBay Inc. Per Year. If Australia caves in and allow USA eBay Inc. to monopolize their PayPal unit to handle payments in effect only, it will allow eBay to try the same in other Countries.