ProPay and PayPal at eBay: What’s the Difference?
Now that there are two electronic payment options to choose from for all eBay transactions, merchants can be more flexible and buyers can have more choices.
PayPal has been the primary payment method for quite some time now and it had already built a loyal user base that completely trusts the system.
ProPay has been providing the same online payment processing since 1997, but it is only this year that they have started to integrate with eBay as the alternative to PayPal.
Both PayPal and ProPay will be included in the checkout process at eBay. The buyer will be taken to their secured payment pages in order to complete the payment. So, what is the difference between the two?
One major difference is that ProPay provides an actual account for each merchant or seller at eBay. With PayPal, all transactions of the merchants go through the same stream where all PayPal transactions go. At ProPay, they have created a transaction stream for eBay sellers only.
ProPay considers eBay to be its primary merchant, with all its sellers, their primary customers for their payment system.
ProPay is still restricted by the policies set by the individual credit card companies in terms of protection, ProPay is keen is giving assistance to its merchants during any issues of charge backs or fraud.
Each eBay seller has a ProPay merchant ID or account that keeps track of the transactions. All these transactions are attributed to the merchant and are recognized by financial institutions. This can be put to great use when the time comes that they need to make loans.
What’s more, buyers who would want to pay through ProPay do not need to create a ProPay account first before they can use the payment system. That makes it easier and faster for the transactions to get completed.
ProPay also provides online monthly statements for reference of the merchants come tax payment time.
Paypal and ebay have undergone numerous detrimental changes since John Donahoe took over as ebay’s CEO in March (ebay owns Paypal).
Paypal can now withhold users funds for 21-180 day’s at Paypal’s “sole Discretion” per it’s user agreement and their is NOTHING users can do to stop them!
Please help to remove John Donahoe from ebay/Paypal, in order to regain fair & safe trading.
http://www.petitiononline.com/jdonohoe/petition.html
found at petitiononline with a seach of this title “Ebay Stockholders and Sellers Calling For Immediate Termination of John Donohoe CEO”
Thanks for the post. That was a great comparison between PayPal and ProPay. PayPal has been a trusted payment provider for so many years on eBay and we are excited to be in the same space with them. I think we both have some really great features; it is really just a matter of choosing the service that will best fit your needs and the needs of your business.
Brandon Crotts
Senior Account Manager
ProPay
I have been using Paypal for a long time. I never had any trouble with them, so haven’t even looked into another service. I have worried before though about paypal horror stories. Thanks for the comparison between Paypal and Propay.
eBay sellers are currently able to use Propay for payments only if they are high level power sellers, which eliminates most eBay sellers from accepting Propay. eBay, of course, owns PayPal and receives a percentage of each transaction paid through PayPal by charging the seller. Under eBay’s paperless payment policy, recently announced by eBay, sellers cannot accept money orders or checks as payment. Is eBay using this policy as a means of extracting even greater fees from sellers? I would like to know if eBay has any ownership interest in Propay or receives a percentage of each eBay transaction channeled through Propay?