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eBay USA dropping check support

Posted by Michael Bloch in ecommerce (Thursday September 25, 2008 )

eBay is cutting checks… out – on the US eBay anyway. They are removing support for money orders as well, plus making various other changes to payment options.

Beginning in late October 2008, checks and money orders will no longer be supported. People will need to use PayPal, a credit or debit card payment to a seller (through a seller’s Internet merchant account), ProPay or payment on pickup.

There will be some exceptions including categories such as wehicles, capital equipment, mature audiences and real estate that will be excluded from the new payment requirements

Furthemore, in January next year third party checkouts will no longer be allowed, with all of the approved electronic payment methods will be integrated into eBay checkout.

Ebay believes that electronic payment methods give sellers more immediate access to funds, allowing for faster fulfillment which in turn should increase buyer satisfaction. Of US transactions paid with PayPal, 25% were paid within 5 minutes and 73% within 24 hours

The company states that currently 20% of eBay transactions send buyers off eBay to complete their purchase. Buyers who have been paying with a check or money order are 80% more likely to file an “item not received” dispute, and 50% more likely to leave a negative feedback.

Ebay says that it will be eBay will offer support for more electronic payment providers over the coming months, but Google Checkout and Checkout by Amazon won’t be among them. They are quite up front about why; stating “Google’s and Amazon’s products and services compete with eBay on a number of levels”.

You can read more about the changes here



 

 
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