In a desperate move to boost transactions eBay is scrapping its consumer protection program as it seeks to boost transactions through its subsidiary PayPal.

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.


“Unashamedly, eBay is focusing on the buyer experience and making sure that it continues to provide innovative ways for improvement in that buyer experience,” Mr MacGibbon said.

“EBay’s a marketplace – it brings buyers and sellers together.

“Ensuring that buyers have an increased chance of a transaction being trouble-free is very important.”

The new scheme will protect PayPal purchases made from participants who have received at least 50 feedback responses, of which 98 per cent are favourable.

Buyer protection up to $400 will be extended to transactions by lesser-known vendors with fewer than 50 responses.

In recent months, eBay Australia has launched a more detailed feedback system for buyers to rate their purchasing experiences for particular sellers.

While the previous system let buyers rate their experiences as being either positive, negative or neutral, a new mechanism allows buyers to rate sellers on a range of factors including description, communication, delivery time and postage and packing charges.


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