Thursday, June 19, 2008

EBay to Strengthen PayPal’s Anti-Fraud Provisions - NY Times article

hmmmm... very interesting. especially after what happened to me earlier this week with paypal. ebay/paypal supposedly offers buyers coverage currently but apparently it does not apply to me since paypal cannot recover funds from the seller account. i certainly did not get the item i paid for and it has been nearly 4 weeks since the auction ended, but apparently there's nothing i nor paypal can do about it since the seller withdrew all her funds before the dispute ended.

NY Times article

SAN JOSE, Calif. (AP) -- EBay Inc. hopes to attract more online traders by expanding the protections available to people who use its PayPal payment service for transactions on eBay's Internet marketplaces.

EBay executives said Thursday at the company's annual user conference that buyers who pay for items with PayPal will be eligible for full refunds, with no cap, if a seller fails to deliver an item as promised. Previously a buyer's coverage was capped at $200, or $2,000 if the item's seller enjoyed a particularly good reputation on eBay.

EBay sellers who accept PayPal as a payment method -- as nearly all of them do -- will also get unlimited protection against a charge being reversed. Such reversals can happen if a buyer claims not to get an item, or if a payment is fraudulently made. Previously sellers' coverage had an annual limit of $5,000, and applied only for shipments to the United States, Canada and the United Kingdom.

PayPal spokeswoman Sara Gorman said the changes, due to take effect this fall, reflect the service's increasing confidence in its ability to spot and block many fraudulent transactions before they occur.

The steps come as eBay is trying several measures aimed at making its auctions and fixed-price listings easier and safer to use. Recently eBay revamped its feedback mechanisms and introduced new incentives for frequent sellers.

However, an earlier attempt to drive use of PayPal has encountered friction. The company recently postponed plans to require PayPal on all transactions in Australia after that nation's antitrust regulator raised objections.