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Internet eBay Bans Use of Google Checkout
Tuan Nguyen (Blog) - July 6, 2006 1:01 PM
Print E-mail del.icio.us 63 comment(s) - last by xphile.. on Dec 8 at 6:13 PM
eBay says the use of Google Checkout may result in account suspension

eBay this week silently announced that it does not allow the use of Google's Checkout online payment system on its website. Sellers and stores operating on eBay are banned from using Checkout, and if found will consequently result in such possible actions as loss of PowerSeller status, loss of certain account privileges and even account suspension.

According to eBay, Google Checkout has not been a tried and true online payment service for an extended period of time. Reports recently surfaced on eBay's new policy change and eBay's stance on Google Checkout remains firm. The online auction giant has not released word on whether or not this will remain a permanent ban or a temporary one.

Google spokesperson said "Google Checkout is not a beta product. Google has a long history in billing and payments for AdWords and for premium services, such as Google Video." Google launched its online payment service last week much to the anticipation of the online community. Analysts speculated earlier this year that Google would launch an online payment service that would compete directly with PayPal. However, Google says that it is open to working with anyone and does not have a closed door. The search giant says that Checkout does not compete with eBay and is different from PayPal. eBay is the parent company of PayPal.

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By VooDooAddict on 7/6/2006 1:17:04 PM , Rating: 3
eBay knows how many people are fed up with Paypal scams...

Something like this is probably the only way for eBay to keep many from jumping ship to Google instead of Paypal.

... on the other hand. eBay doesn't have a well established FAQ or support system up for Google's payment system.

Threatening banning though leads me to think it's more the first case.




By geeg on 7/6/2006 1:23:32 PM , Rating: 2
do you think google payment system will be scamfree?


By villageidiot111 on 7/6/2006 1:28:19 PM , Rating: 2
Based on Google's history, it will have significantly fewer problems than paypal.


By Homerboy on 7/6/2006 1:32:04 PM , Rating: 4
Paypal was perfectly fine when it started if you recall.

But when money is involved, scammers will find a way to scam. They will take advantage of Google's method too. Give it time.


By ElJefe69 on 7/8/2006 2:33:47 AM , Rating: 1
paypal was never fine for the seller, the real person that should be protected from all the consumer scumbags trying to steal crap.


By ChEMiX on 7/6/2006 1:33:28 PM , Rating: 3
I don't think they are worried about the scam rates, I think it's more to do with the appalling service and high rates, it has always been so easy for a competitor to roll in and completely undercut PayPal in every way but none have had the marketing capability to compete with PayPal with their logos plastered all over eBay's site.

Now PayPal (= eBay) can either sort their service out and lower their rates or they can just play the ass and try and block anyone from competing. Which costs less?


By bobdelt on 7/6/2006 2:40:14 PM , Rating: 5
BULL HONKY!

Ebay is an auction service, not a payment service. If I can pay by personal check, money order, cash, an escrow service, etc, there is no reason I can't use Google's thing.

What other payment services has ebay banned? None that I know of. They use to compete with paypal before they bought it.

Why does ebay care how I pay the seller? That has nothing to do with the auction as long as I pay somehow.



By BladeVenom on 7/6/2006 4:50:56 PM , Rating: 2
Ebay better be careful, otherwise Google could come out with their own online auctions.


By Nexworks on 7/6/2006 6:31:03 PM , Rating: 2
Auctioogle? Sweet...


By animedude on 7/6/2006 7:15:03 PM , Rating: 2
They allow bank wire transfer but disallow western union money transfer. Is that a ban? I would say yes.


By bobdelt on 7/6/2006 9:19:55 PM , Rating: 2
when did they start doing that? I dont use ebay much more anymore, but back in the day I don't think they cared what you use. How can they stop me from using a western union money transfer? Its not like I have to tell ebay how I paid the seller.


By animedude on 7/6/2006 11:06:36 PM , Rating: 2
When a seller stats that they accept Western Union MT, eBay will delete the listing.


By xphile on 12/8/2006 6:13:12 PM , Rating: 2
I agree totally with what you have said - it's my auction, if I am happy with the payment method and the buyer is happy to use it - end of story it should be NONE of Ebay's business how the transaction is completed. But boy ther are a lot more banned methods than you are aware of. This isnt new - they have been screwing every threat that wasnt prepared to partner with them in some way. As of now Google payments is attracting a nice number of retailers away from Paypal and long may it ontinue. At this rate Paypal could become and auction payment system and nothing else - poor Ebay cant control external businesses or websites - so eventually Paypal could be the ONLY way to pay for Ebay auctions. I mean, if they lost all their other payment business would anyone be surprised to see them do it? I can see Ebay executives in absolute panic about this, now if Google can create an Auction site too that would just be too funny.

They already blacklist these payment methods:

Payment Services not permitted on eBay: AlertPay.com, anypay.com, AuctionChex.com, BillPay.ie, ecount.com, cardserviceinternational.com, CCAvenue, ecount, e-gold, eHotPay.com, ePassporte.com, EuroGiro, FastCash.com, Google Checkout, gcash, GearPay, Goldmoney.com, graphcard.com, greenzap.com, ikobo.com, Liberty Dollars, Moneygram.com, neteller.com, Netpay.com, paychest.com, payingfast.com, Payko.com, paypay, Postepay, Qchex.com, rupay.com, sendmoneyorder.com, stamps, Stormpay, wmtransfer.com, xcoin.com


Sounds like illegal tying to me
By masher2 (blog) on 7/6/2006 1:42:31 PM , Rating: 2
Requiring customers of one product (an online auction) to purchase another (checkout/escrow services) appears, at first glance, to be a rather clear case of illegal tying.




RE: Sounds like illegal tying to me
By brshoemak on 7/6/2006 1:54:24 PM , Rating: 2
A little OT, but...

quote:
Requiring customers of one product (an online auction) to purchase another (checkout/escrow services) appears, at first glance, to be a rather clear case of illegal tying.


quote:
a tying arrangement is an agreement by a party to sell one product but only on the condition that the buyer also purchases a different product (often known as a positive tie), or at least agrees that he will not purchase that product from any other supplier (often known as a negative tie)


Let's combine them...

Requiring customers of one product (Apple iPod) to purchase another (iTunes) appears, at first glance, to be a rather clear case of illegal tying.

a tying arrangement is an agreement by a party to sell one product (Apple iPod) but only on the condition that the buyer also purchases a different product (often known as a positive tie), or at least agrees that he will not purchase that product from any other supplier (iTunes)

/just for fun, no flame intended



By saratoga on 7/6/2006 2:14:45 PM , Rating: 2
quote:
Requiring customers of one product (Apple iPod) to purchase another (iTunes) appears, at first glance, to be a rather clear case of illegal tying.


Apple doesn't require you to use iTunes. Personally, I use winamp with my Ipod.

I don't know if this is really tieing though. You could always use a cashier's check with ebay. It would be nice if ebay changed their mind though. Paypal is such a piece of crap these days.


RE: Sounds like illegal tying to me
By obeseotron on 7/6/2006 1:54:37 PM , Rating: 2
But they aren't forcing paypal, they just aren't accepting google's version. There's a pretty big difference, and if even if it were illegal (don't think it is) ebay still wouldn't accept gbuy until a court made them.


By masher2 (blog) on 7/6/2006 2:28:48 PM , Rating: 4
> "But they aren't forcing paypal, they just aren't accepting google's version."

Untrue. If you want to use an online payment method, you must use Paypal.

In essence, what they're doing is no different than GM saying, "if you want to buy one of our cars, you can either finance it through us, or pay cash. You cannot use another bank or credit agency".


By Phynaz on 7/6/2006 2:00:18 PM , Rating: 2
You are not required to use Paypal to pay for items bought on eBay.


RE: Sounds like illegal tying to me
By kattanna on 7/6/2006 2:49:20 PM , Rating: 1
quote:
Requiring customers of one product (an online auction) to purchase another (checkout/escrow services) appears, at first glance, to be a rather clear case of illegal tying.


but arent companies free to do what they want masher? and if you dont like it then you dont have to buy their product/use their service?

you have stated as such MANY times with much bravado in response to others listing their concerns about other companies...why the sudden change of heart?



RE: Sounds like illegal tying to me
By masher2 (blog) on 7/6/06, Rating: -1
By Eris23007 on 7/6/2006 4:15:57 PM , Rating: 2

w00t! Go libertarianism!

/immaturity

In my view this is the true difference between politics and philosophy - a philospher will advocate positions based on moral / ethical principles. A politician will advocate positions based on "what's good for me and what gets me reelected".

Masher - I agree. This shouldn't be illegal, probably is illegal under current laws, and either way is unwise and shortsighted. Tying people to their payment services will encourage the successful establishment of alternative online auction houses, since their online payment services are so lousy and overpriced.

Just my two cents...


Payments
By murray13 on 7/6/2006 5:15:08 PM , Rating: 2
Now I personally don't love or hate e-bay/paypal. I just thought a good look at what they do accept would shed some light on this discussion.

Taken directly from e-bay:
quote:
Payment Services permitted on eBay: Allpay.net, Bidpay, Canadian Tire Money, cash2india, CertaPay, Checkfree.com, hyperwallet,com, Moneybookers.com, Ozpay.biz, Payko.com, Paymate.com.au, Propay.com, XOOM

Payment Services not permitted on eBay: AlertPay.com, anypay.com, AuctionChex.com, AuctionPix.com, BillPay.ie, ecount.com, cardserviceinternational.com, CCAvenue, ecount, e-gold, eHotPay.com, ePassporte.com, EuroGiro, FastCash.com, Google Checkout, gcash, GearPay, Goldmoney.com, graphcard.com, greenzap.com, ikobo.com, Liberty Dollars, Moneygram.com, neteller.com, Netpay.com, Nochex.com, paychest.com, payingfast.com, paypay, Postepay, Qchex.com, rupay.com, scripophily.com, sendmoneyorder.com, stamps, Stormpay, wmtransfer.com, xcoin.com





RE: Payments
By rrsurfer1 on 7/6/2006 5:37:10 PM , Rating: 2
Right... notice how most of those that are "allowed" are small-time players, that have very few users or have an affiliation with eBay. Google will be able to put up some serious competition with eBay/Paypal. Makes sense they would ban them.


RE: Payments
By rrsurfer1 on 7/6/2006 6:12:00 PM , Rating: 2
Also...

I encourage any eBay member who is not hoppy with this policy to contact eBay with their dissatifaction, as well as your local state attorney general. Maybe if enough people do this eBay will rethink their policy.


RE: Payments
By masher2 (blog) on 7/6/2006 7:46:01 PM , Rating: 2
The Antitrust Division of the US DOJ would be a better starting point. They will receive complaints directly from the public.


RE: Payments
By rrsurfer1 on 7/6/2006 8:13:11 PM , Rating: 2
Didn't know that, thanks for the heads-up.


RE: Payments
By rrsurfer1 on 7/6/2006 8:14:21 PM , Rating: 3
RE: Payments
By bobdelt on 7/6/2006 9:22:53 PM , Rating: 2
I still dont understand how they can or cannot "accept" payments. Since ebay has nothing to do with how the seller gets paid. They really cant prevent me from using any of the banned services unless I call them and tell them.

All it does is prevent sellers from advertising on their auctions.


Googlebay?
By Araxen on 7/6/2006 2:12:53 PM , Rating: 5
Now would be a good time for Google to release their own Auction site.




RE: Googlebay?
By Xavian on 7/6/2006 2:22:10 PM , Rating: 2
agreed, im sure there would be plenty of people who would switch, it isn't just paypal thats crap, but also ebay too, their service for sorting out disputes and illegal business pratices is apalling.

We need decent competition to give ebay and paypal a good kick up the ass.


RE: Googlebay?
By joex444 on 7/6/2006 3:13:26 PM , Rating: 2
If paypal sucks because of all the scammers, where exactly do you think they go once paypal becomes #2 to google's thing? And why couldn't they scam both ends?


RE: Googlebay?
By Obadiah on 7/6/2006 4:03:00 PM , Rating: 2
The biggest scammer "on" paypal is paypal itself. You can be pretty sure they won't be moving to Google.


RE: Googlebay?
By animedude on 7/6/2006 7:21:52 PM , Rating: 2
True. Paypal locks up account and holds those money upto 6 months. If you forget it, then they'll keep it. They charge fee for transfering money with Premier or Business account. It is understandable for charging fee on credit card payment but transfering balance between users is just ripoff.


heh
By Homerboy on 7/6/2006 1:11:55 PM , Rating: 4
smart move Ebay. Protect your investments (no sarcasm)




RE: heh
By zombiexl on 7/6/2006 2:13:42 PM , Rating: 5
Seems to me that if this were about MS incorperating their serch option as the default on in their browsers there would be more flames.

This is the same as MS saying if you use google as your default search we will ban you from using IE.

This type of anti-competative practice is what the lawyers dream of..


Ebay OWNAGE
By Nik00117 on 7/6/2006 6:36:08 PM , Rating: 2
Ebay is ticked, because they know that Google will do better then them. Google has offered services, and support that most poeple merely DREAM OF. Their e-mail is one of the best i've seen, paid or free! There search engine is surpeme and has double the searches of the closet competitor. I believe its 3x now.

Google their stock has been one of the most succesful stocks there are!

Ebay and paypal are a minor success story compared to google, ebay fears this new google payment, ebay makes money off of paypal ebay loses money if paypal can't keep up.




RE: Ebay OWNAGE
By KeypoX on 7/6/2006 8:44:20 PM , Rating: 2
hopefully we can get rid of ebay and paypal because i am not a big fan of either


RE: Ebay OWNAGE
By animedude on 7/6/2006 11:11:07 PM , Rating: 2
Althought I make my living through ebay, I still dislike ebay and many of its policies.


RE: Ebay OWNAGE
By dude on 7/7/2006 2:55:28 AM , Rating: 2
I'd hate to say it but same here. Unfortunately, every other auction site I've tried did not work out, including Yahoo Auctions, Dell Auctions, uBid, Amazon auctions, and a few others.

As a reseller, this sucks, as it limits the way I want to sell. Unfortunately, even though it doesn't look like so, ebay does have everyone by the balls.


anti-trust case in 3..2..1
By ForumMaster on 7/6/2006 1:35:05 PM , Rating: 4
this seems like an unfair business practice. Google could sue.




RE: anti-trust case in 3..2..1
By Samus on 7/6/2006 2:37:27 PM , Rating: 2
my thoughts exactly. figure this isn't going over well at google considering this is the exact market they were targeting.

however, if they are planning google auctions like it is rumored, ebay will find a way to sue them. google must be very careful in being original in their auction framework design.


how about google auctions then
By IMPoor on 7/6/2006 4:42:12 PM , Rating: 2
I hate ebay for only one reason: PAYPAL. There system sucks and there are way to many ways to get screwed by them. without paypal ebay is still a good idea (although the fees could be lower). But the fact is that paying by check or money order is not practical online. It takes long and is a pain in the ass. So I need a company like google checkout.

Google should sue paypal/ebay. Or even better would be to open their own google auctions sight and totally destroy the monster that ebay/paypal turned into. Its sad since ebay and paypal started out so good and turned out so bad.




RE: how about google auctions then
By Xenoid on 7/6/2006 9:06:04 PM , Rating: 2
I noticed today I purchased something and the seller (business) states that they will NOT accept Paypal. It's pretty bad when a store doesn't accept it.


Not fair.
By akimboberetta on 7/6/2006 3:32:45 PM , Rating: 3
If you're able to pay someone using cash or credit card (things which eBay has no control over) I don't see how they can justify banning an online payment method that is offered by a legitimate company such as Google.

How about instead of banning it completely, just say that they won't offer any kind of protection for transactions that go wrong over Google payment? Taking away a seller's PowerSeller rating just seems like bullying to me.




EBay and Paypal
By dracolich on 7/6/2006 1:29:23 PM , Rating: 2
Figures. Paypal is owned e-bay.




By jskirwin on 7/6/2006 2:00:37 PM , Rating: 2
Is a good thing in my book.

Ebay/Paypal services have really suffered from lack of competition. Perhaps Google will force them to innovate after all.




haha
By RMSistight on 7/6/2006 4:12:57 PM , Rating: 2
My thoughts exactly.




sue them
By ncage on 7/6/2006 4:26:51 PM , Rating: 2
I can see google suing over this ones. Seems pretty anti-competitive to me.




By interl0per on 7/6/2006 5:00:12 PM , Rating: 2
they know people will bale from paypal in droves.

silent update HA!





By dude on 7/7/2006 3:05:20 AM , Rating: 2
I don't know if anyone remember, but at one time in history, ebay shunned paypal payments when they had their own payment system. I don't remember the service name, but it was expensive, and both the buyer and seller had to pay a percentage, I belive?

If you wanted to use paypal, you can, but if you advertised it in your auction, you can only make it a small banner stating so. Anything larger than a certain pixel size got your auction taken down.

Now that ebay's payment service has failed and they bought and added their biggest competition to their rankings, it seems they are shunning google checkout service.

I only hope a bunch of people use the checkout service and lose their "powerseller" rating, or worse, get banned from ebay. For those who do, I hope to high hell that you SUE ebay to the rocks that they crawled from.

In this day and age, there is no reason why ebay would hold suich tactics, although, they have sucessfully raised fees many times in a row, to the dismay of sellers who uses their services to make a living.

For a store not to accept discover or American Express cards, it's because they charge the reseller too high a percentage rate. If you use google instead of paypal, what has ebay to lose, other than them not using paypal?

I just don't see a logical excuse to this, nor do I believe that they have one.




By smartdog on 7/7/2006 3:23:23 AM , Rating: 2
that ebay simply buyed paypal and integrated it in their system. here in germany you're free which payment service you want to use. free country, free mind and will.

end your auction, place your payment methods as .gif or .jpg inside your description and see what will happen. i don't think that they have enought staff to read all auction-txt's. *lol*

this is a blame for ebay.




By xKelemvor on 7/7/2006 8:59:58 AM , Rating: 2
You don't have to put a link in your auction but you can sure email the user afterwards with a link to the Google CHeckout page.

Can just set it to "Check or Money order" in the auction but then put a note in that says you offer your own Online Payment system and will contact the user after the auction...




By osalcido on 7/7/2006 2:22:50 PM , Rating: 2
Maybe I didn't look at it clearly enough.. but last I checked, Google Checkout was to buy from Stores only, not other people. Is this incorrect?




Google should Ban eBay
By xKelemvor on 7/7/2006 3:00:51 PM , Rating: 2
How many times when you do a search on google do you end up with a link to ebay? And how many ebay ads are ther eon the sides or the top?

Wonder how they'd like it if Google decided to not show any links that went to ebay... Or even better if google decided to bump up the links that go to outher auction sites and leave off the ebay ones...

I guess it depends if eGay does enough to piss off Google. heh.




google this and google that...
By RobberBaron on 7/6/06, Rating: -1
RE: google this and google that...
By bobdelt on 7/6/2006 2:43:43 PM , Rating: 3
No its not like sears accepting a walmart credit card.

When you buy something of ebay, you pay the seller, not ebay. Ebay shouldn't be able to control how you pay the seller. That is something between you and the seller and should be none of ebay's business.


RE: google this and google that...
By Griffinhart on 7/6/2006 2:55:32 PM , Rating: 2
Technically when you use a walmart or sears card you aren't paying the store. Walmart and Sears is paying for the goods in returjn for promise of future payments at an agreed interest point.

The analogy is quite good actually.

There is nothing wrong with Ebay doing this anymore than a store requiring "Cash Only."


RE: google this and google that...
By Griffinhart on 7/6/2006 3:01:36 PM , Rating: 2
quickly looking at the approved payment options Ebay uses:

-PayPal
-Credit card
-Personal checks, cashier's checks, or money orders

The original analogy definately works. Certainly, it's no worse than a store accepting Visa but not MC or Amex.


RE: google this and google that...
By fic2 on 7/6/2006 7:14:33 PM , Rating: 2
I think a better analogy would be that I own the building that you lease for a store and I dictate what methods of payments you can accept (oh, and take a cut of those payment methods).


By mawst95 on 7/9/2006 4:19:36 PM , Rating: 2
I disagree. Ebay claims its only a "venue" not a merchant. This venue claim is what allows ebay to skirt any responsibility when stolen or fraudalent goods are sold. If walmart was selling fake Louis Vuitton purses, or selling stolen plasma TV's they would be liable for all sorts of damages both civil and criminal. No one has successfully sued ebay because they again, they are a venue, not a merchant. There's a legal term for this, but I forget:) The Walmart/Sears analogy is apples and oranges and does NOT apply.This sounds like a case of ebay wanting to have its cake and eat it too. They want all the pro's of being a merchant and none of the cons, while still claiming to be only a venue.


By masher2 (blog) on 7/6/2006 3:36:33 PM , Rating: 1
> "Technically when you use a walmart or sears card you aren't paying the store"

Incorrect. You are entering into a contractual arrangement wherein goods are exchanged for a promise. Legally, no different than paying cash.

> "The analogy is quite good actually"

The analogy is flawed on several levels. The payment issue mentioned above is one. Secondly, a department store credit card is not a separate, independent product. If Walmart owned American Express, now, and required you to use it in place of Visa or Mastercard, that would be a tying arrangement and, if Walmart was deemed in monopoly status in its market, illegal.




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