From June, PayPal will double its buyer protection scheme to $3000 for purchases from well-known eBay sellers.
The scheme replaces eBay's own program, which offered protection of up to $400, excluded payouts for postage expenses and charged $25 for a claim.
While the move has doubled the maximum amount buyers will be able to claim, it is likely to incite reaction from some vendors, who prefer not to use PayPal.
EBay has long recommended PayPal over other methods, even before its acquisition of the payment system in 2002.
While users can conduct payments through direct transfer or cheque payment, services like Western Union are banned.
By using PayPal, users can transfer money over the internet without revealing bank account details to third parties.
Alastair MacGibbon, trust and safety director with eBay Australia, said the new protection program was one of several changes to eBay in recent months.
