No one likes a complainer, But some times it is necessary to post an advisory and a warning.

I have increasingly noticed eBay sellers stating in no uncertain terms that they do not accept Paypal

Now I know why

I just sold a few excess model railroad items on ebay and feel like I have just been screwed by an 800 pound gorilla. It's great if you're a 600 pound gorilla of the opposite gender but me, I feel only the outrage.

My actual experience over the last two weeks, reveals the following:

When an auction ends ebay ay sends a message to the buyer to use Paypal since it is fast and easy. Just one click and the purchase will be on its way, no muss, no fuss ,no extra cost. Paypal is a convenience for buyers.

But is a very expensive hassle for sellers. As soon as Paypal is selected, sellers are sent a message urging them to ship now because funds have been received. Not mentioned in the notification is the fact that if you are a new seller, defined as having less than 100 feedback posts, Paypal will place the funds on 'hold' for 21 days before releasing to the seller. Then, after the funds are released they state it will take 5 business days for the funds to electronically transfer to the seller's bank account. In my first auction, the buyer paid the day the auction ended, May 30. Paypal's automated site stated the funds would be released on June 22 UNLESS the buyer placed a hold on the transaction. That's 24 days and then I will have to wait for the money to transfer to my bank account. Meanwhile the buyer has already received the item.

Paypal charges the seller approximately 3.6% of the sales price for the use of their credit service. This is over and above the fees charged by eBay, which average out to about 6.6% of the final sale value. Most credit card companies, charge merchants 1.9 to 2.5% depending on volume for their services. Of course unlike Paypal, they face competition.

Don't get me wrong, even Karl Marx said fair profits are desirable. What is objectionable, besides paying 3.6% of the sale price for the privilege of having your funds tied up for 21 days, is the manner that eBay uses its monopoly position to force casual sellers and anyone else who is not set up to receive credit card funds, to buy this service from Paypal.

I have been a eBay member for 10 years and have a 100% positive feed back score. Checking any of the traditional measures of rating one's credit would reveal I have an outstanding score, lived at the same address for 26 years and have never defaulted on anything. ( I don't have a criminal record either) Yet somehow because I have just decided to start selling, I'm now some sort of a credit risk who has to have his money held 21 days 'just in case". I have several friend who started selling before this spring and never had to jump through these hoops.

Could it be that the 21 day hold is not really to protect buyers and sellers but rather to protect ebay's bottom line? The amount of money I have had tied up in miniscule. But multiply it by the tens of thousands of sellers potentially effected and one finds untold millions in funds eBay has the use of in a revolving fund. It is an unearned revenue stream. Could that be the real reason for holding back funds?

Consider the following about the 'New eBay/Paypal Rules':

Why must an 'electronic payment option' be offered to list an item on eBay? Since long before the start of internet selling checks, money orders and in some instances cash have been perfectly acceptable means of settling accounts. If a seller does not want to offer credit card payment they should not have to. If a buyer demands a credit card option, s/he can take their business else where if a merchant does not offer it. That is the American way of doing business.

When an Electronic Credit Payment is mandatory requirement of every listing, the Paypal division of eBay is the sole beneficiary. It is highly unlikely when clearing out the garage or attic that you will skip down to the bank to set up a account to receive credit payments. The only realistic choice is there expensive Paypal service.

Seller's are not allowed to mention that payment may be made via Postal Money order. I tried and an automated pop-up advised the Postal Money Orders can not be mentioned. I believe that violates the Postal regulations and therefore is against the law.

The new policy advises buyers and sellers are not supposed to communicate directly with each other. This is for their 'protection'. What do they think are? A bunch of school children? All communications should be made through eBay. Apparently as free citizens we are free to communicate with anyone any how we chose except if we happen to be in North Korea, Iran, or the eBay offices in San Jose CA.

It is simplistic to say 'well, don't use eBay'. The fact is ebay has become a de facto monopoly and there is no other site to go to sell on line. Since persons such as my self are not in the retail business we are forced to use Paypal. This is done by eBay forcing all sellers to offer an 'electronic payment method' to 'protect potential buyers'. Hell, the only thing being protected is eBay's bottom line.

When I joined eBay in 1999, sellers and buyers were treated equally and eBay functioned only as a sales facilitator. No more. eBay has grown into an abusive monopoly favoring buyers since it can extract one sided terms from sellers who have no choice. Buyers get a free ride since they can always walk away. These sales terms are crafted solely to maximize ebay's bottom line.

In my humble opinion, what we have here is a Monopoly abusing its position to force users to use what should be an optional service. The sole purpose is not to protect buyers and seller, they could do credit checks for new members if that were the goal. No, the sole purpose of the new rules being adopted over the last year is to maximize its profits at the expense of the public who realistically have no other place to trade on line.

Why Am I Posting This?

Because I get outraged when an abusive monopoly seems to be getting away with screwing the public and there does not seem to be anyway to fight it.

What Can We do?

My message is don't use Paypal if you are a buyer even though it is easy to use. It is an expensive service that should be optional not mandatory. Trust me, the cost is being passed on to the you by the seller somewhere along the line .

The Bernie Madoff scandal happened because no watchdog agencies bothered to look or follow up on complaints. I think the climate has changed thanks to Bernie and other crooks like him. Perhaps it is time to write our congressional representatives as well as the Federal Trade Commission about this 800 pound gorilla. I know I'm about to.

Somehow this eBay/Paypal behavior does not comport with the spirit of the Fair Trade Act!