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eBay tightens rules on payment methods

eBay has tightened rules governing credit card acceptance and clarified its prohibition of a type of fraud known as shill bidding. eBay said Monday that sellers could no longer accept PayPal payments from buyers without accepting credit card transactions, thereby avoiding PayPal fees. eBay acquired PayPal in 2002.

Sellers` practice of restricting PayPal payment methods "was creating a bad buyer experience," said PayPal spokeswoman Amanda Pires. "It would be like walking into the grocery store and filling up your cart, getting to the check stand with your credit card and being told sorry, even after you saw the credit card logo outside the store."

Under PayPal rules, sellers can accept payment through bank transfers or PayPal balances for free. But sellers in the United States who accept credit card payments are charged between 1.9 percent and 2.9 percent of the value of the transaction, based on volume.