PayPal rival details fees for launch on eBay

ProPay, a company that specializes in credit card processing and electronic payment services for businesses, has announced prices for eBay users.

The information was released Tuesday, ahead of ProPay's launch as an alternative payment option on the auction site later this month.

As eBay announced in August, it will soon take only electronic payments. Part of that plan includes bringing on an additional electronic payment service to compete with eBay subsidiary PayPal and thus ease concerns over eBay's total control over payment processing. Aside from accepting credit cards, eBay's solution involves giving sellers the option of using ProPay's service.

ProPay was quick to point out that it doesn't want to be considered a full-fledged PayPal competitor and instead wants to position itself as a company that caters to power sellers who plan to accept credit cards. That may be a good idea considering that sellers will be required to pay monthly fees on top of transaction costs--something most PayPal users aren't required to do.

For eBay Silver power sellers and higher, ProPay unveiled its eAuction account, which will be available once ProPay goes live on eBay. It will carry a $24 annual fee or a $2 monthly charge, but the company is offering a $24 credit for sellers who process $3,000 or more with ProPay during their first six months using the service. The plan will carry transaction fees, but ProPay wouldn't reveal those figures. It would only say that the fees will be comparable to those charged by "other services."

For those needing more than just the basics, ProPay will unveil the eAuction Pro account later this year for eBay Silver power sellers and higher who not only sell goods on eBay, but also need specialized services for processing credit card transactions in other areas.

The eAuction Pro Account will offer all the features available in the standard eAuction account and add an online virtual terminal, touch-tone phone processing, e-mail invoicing, and a secure card reader that will immediately send the cardholder's information over an encrypted connection to ProPay's virtual terminal to verify funds. According to ProPay, the fee for the Pro account will be $240 annually, and the transaction fees will be identical to those charged in the standard account.

[sparrowhyperion]

I can see where this is going to work... NOT! Why do people think up things like this. I see very little incentive to switch from Paypal. They also failed to mention if their service will include similar buyer protection to that offered by Paypal either. Oh well...

[hnavp66]

Well Put & Agreed!

[msjonker]

eBay is really going to allow a "competitor"... right. If that were true, Google Checkout would be available. This will just be ProPay, a subsidiary of PayPal, a subsidiary of eBay.

[contentcreator--2008]

Rates listed at propay.com are higher than paypal, why bother?

[usarioclave]

ebay: you will pay with either our method (PayPal) or some other, more expensive method (ProPay). Do you want to buy something without paying someone a fee? Sorry, you're out of luck.

No wonder eBay is in a slow decline.

[Understarsidream]

I lost all respect for ebay when they stopped being a place for collectors to buy/sell and became the worlds largest legal fencing operation.

[humanssssss]

I used to use paypal. After they cheated me out of $42.37, I stopped using them and have never for over 8 months. Ebay also cheats me. It's been 5 years that I've used them.

I use craigslist nowaday. It's better and I don't to through the hassle of these Internet companies that never response to my email and steal my money.

[zincmann]

I agree with Humansssss. Paypal tends to rule in and not in your favor when it comes to auction disputes depending on how the wind blows. I had an issue with two sellers, who didnt do their research on what they were buying and expected more than what they supposedly got, and filed with paypal, in one case paypal gave me money, which I didnt want but gave the the idiot buyer, and they second buyer ended up getting his $89 back which also upset me. Its system is flawed but were forced ot use it, and unfortunately with the monopoly that Ebay has its either Paypal or nothing and the options to use someone else apparenly is not an option with higher costs. Its in my oppinion that between Ebay and Paypal they are holding you at gunpoint for fees and policies, so I use them less and less, so it also pleases me to see they are struggling, No Ebay its not because people dont want to sell, you have turned them off and lost your base, and were not going to come back.

[raytarded]

EBAY and PAYPAL charges way too much for transaction. You easily loose $40 to both when you sell an item around $400 which i personally think is too much.

[brandoncrotts]

Thanks for the supporting post, Don. This is Brandon Crotts from ProPay. I wanted to make a quick clarification regarding the annual fee stated above. An eAuction account will carry a $24 annual fee collected at one time each year and not as a $2 monthly fee.

We're excited about the changes coming and know it will present an incredible opportunity to serious eBay users. Many people run efficient businesses through eBay and a merchant account through ProPay will serve as a great alternative to those unsatisfied with PayPal.

Check out <a href="http://propay.com/company/eBayAnnouncement.aspx" title="ProPay's">ProPay's</a> announcement on their site for more information.

Thanks again.

[brandoncrotts]

http://propay.com/company/eBayAnnouncement.aspx

[pookie44]

I'm not a big enough powerseller. I am one, though, who thoroughly and ABSOLUTELY RESENTS the move to paypal only--as both a buyer and seller. ebay has no business telling me how to run my business, small as it is. I cannot afford the double fees incurred through ebay and paypal. I don't want to lose customers who don't want, can't, or for whatever reason (gee, poor customer service might be one) refuse to use paypal. And I intensely dislike paypal, especially when it sides with buyers who are clearly lying in disputes or are clearly unstable, or make threats. (I have had all kinds.) Propay means nothing to me. Pretty much, ebay is moving in the same direction.

[Newfangled]

I've already given up on filling Feebay's pockets any more. I've now found a new home where it's free to list items for sale; I even have my own booth for free. I also don't have new rules everyday that I have to keep up on in order to avoid getting a "vacation". And can you imagine, I can accept MONEY ORDERS AND CASH. Check out my booth:
http://www.bonanzle.com/booths/Newfangled

[netsafire]

With such a high setup fees, how can ProPay even think of competing with free PayPal?