If you are a ebay user then you might know that we in Australia must now use Paypal for all our ebay transactions, we can't use direct deposit, cash, cheque or money order.
Ebay has thrust this upon us by insisting that "You are four times less likely to have a problem on eBay if you pay with PayPal than all the other payments on the site, like direct deposit," ... but they have made this statement without any back up data. If you made a statement like this for a university paper you would be failed, in a government submission you would be charged with 'wastage of public funds' - you can't make a statement like that and not back it up with evidence.
Here's my proof -
Between 2001 - 2007 I made 4,950 transactions on ebay; out of all those 40% were paid for via Paypal (all overseas buyers used Paypal), 55% direct deposit and 5% for other methods.
Out of all my transactions I had 7 disputes - 4 with Paypal and the other 3 were direct deposit. Let's quickly do the math - there was 4 disputes out of 1,980 Paypal payments (0.0020%) and 3 direct deposit disputes out of 2,722 transactions(0.0011%).
So by my reckoning Paypal has twice the amount of disputes - so now I need to ask where ebay gets its figures from?
Ebay will never provide these figures though for the simple reason that they don't exist. This is simply a money making exercise as ebay now charge you twice (ebay fees and the Paypal fees), and why does ebay need more money? Because the CEO of the company doesn't realise the customer service makes a company and now that ebayers are leaving in droves more fees need to be extracted from those that are staying in order to make the bottom line look good.
I for one look forward to a competitor as this is the only thing that will pull ebay back into line.
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