The latest terms of use for eBay have come into effect which means the online auction house will now pay retailers directly rather than through PayPal, therefore, leading many users to threaten a boycott of the online marketplace. The amendments, which came into effect on June 1, are compulsory and retailers are not able to opt-out of what eBay describes as the “managed payments system”. This has proven controversial with eBay’s seller community, observing many take-ups to seller forums to invite for a boycott and threaten to quit using its platform.
eBay states that the move will make it easier for consumers who will automatically have access to every payment option including credit and debit cards, Apple Pay, Google Pay, PayPal, and PayPal Credit. Several of the users are concerned that without PayPal acting as a go-between eBay, which is perceived as a large bias towards consumers regarding conflicts, will now exercise too much authority over their sales.
Furthermore, some users have also raised concerns that refunds could be automatically issued to buyers if there are any disagreements, leaving them defenseless against the growing number of fraudsters. eBay says it adheres to the same rules as other direct debit systems, suggesting customers will have high-level notice of how much is being taken out and will obtain refunds for any deceitful or incorrect amounts.
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In addition to it, questions regarding the new payment system have also been raised, as now PayPal’s fees will be replaced with new eBay’s fees, though it states the majority of retailers will be better off following new rules. Before the modifications sellers were charged 10 percent of the final sales price by eBay, an additional fee by PayPal along with a standard rate of 30p. Following the new system, retailers will give 12.8 percent to eBay plus 30p, however, will no longer pay any additional fees to PayPal.
Source: BBC
