July 6, 2006

Online auction giant eBay has changed it's Safe Payments Policy to specifically prevent any of its members from using Google Checkout.

The reasons behing eBay's decision aren't clear. While Google's new Checkout feature is slated to compete directly with eBay's PayPal, in reality it's simply a credit card gateway, and the same one eBay spends millions with as the top Google AdWords user.

Additionally, credit cards are specifically allowed with all payment gateways such as Verisign, CyberSource, Authorize.net, Secure Checkout, etc.

Here's a relevant excerpt from eBays new Terms of Use policy:

Payment Services not permitted on eBay:
AlertPay.com, Anypay.com, AuctionChex.com, AuctionPix.com, BillPay.ie, eCount.com, CardServiceInternational.com, CCAvenue, 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, Stormpay, and xCoin.com.

eBay's Terms of Use then go on to say: Sellers may offer to accept PayPal, credit cards including MasterCard, Visa, Amex, Discover, debit cards and bank electronic payments online for eBay purchases. Sellers may also offer to accept bank-to-bank transfers, often known as bank wire transfers or bank cash transfers. Sellers may accept COD (cash on delivery) or cash for in person transactions.

Sellers may offer to accept personal checks, money orders, cashier’s checks, certified checks and other negotiable instruments. Please see the “Some Examples” section of this policy for those evaluated payment services permitted in the eBay marketplace.

This decision by eBay is seen by some observers as an attempt to control the way eBay sellers take credit cards, and, as a side-effect, limit their leverage with Google Adwords if they feel it starts to infringe on the PayPal system.

It's ironic they would do this at this point in time and, in the same breath, go to Congress and fight the Net Neutrality battle...

You can't fight for an open Internet one day and then implement policies that close the walled garden the next...

Source: eBay Strategies