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.
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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?
I used to use ebay often, but with the new ebay paypal rules, I will no longer list items! I do not like being told by ebay that I must accept paypal as a form of payment!
Have used paypal both to buy and sell for over ten years. Paypal put my account on limitation because I sold investment silver and went over $30K which then triggered them to do a “security” check…they keep referring to it as an issue for me to resolve….what issue? I am not looking for other payment transaction services.
I have used Paypal nearly since the beginning for my business. They really are for the most part very reasonable. I really would not change. My clients feel comfortable too with them
Why switch horses when one does not need to?
PayPal has limited my account twice now for no apparent reason and no reason was given when asked or demanded. I run a business on eBay, not a hobby, I have 100% customer feedback rating. There is no justification for this. That’s why I’m looking for an alternative. A business cannot stand to have their money arbitrarily held.
Paypal is skillful at silencing any complaints. They simply “change” (disable) your password and you have no access until you grovel to them via regular email. It only takes a nasty buyer to close down your account – and on that one I would up waiting for 7 years until they had to turn it over to the state where I live to get the $3000 balance. Paypal is not a bank and not subject to federal regulations – so teabaggers think twice before screaming that gov’t is bad. As a family we refuse to do any transactions thru paypal – even before their nonsense with blacklisting wikileaks. We use Propay and Google for payments, but we are not allowed to mention those names on ebay. If only there were auction sites that ebay had not squashed – ebay is hardly benevolent!
Ebay has raised their fees and prevented free market competition on the internet. They are now buying up overseas auction sites that we have used and continue to swallow any competitors. Amazon is one of the few places left to sell.
Paypal just kills me, I have nearly 4000 positive feedback, no negative no neutral. all my individual stars are 5/5 except for one 4.9/5 for shipping time. I been a customer for 8 years no complaints no claims.
paypal tells me that if I sell some items for family and friends I should put THEIR paypal email to receive the funds…so I did that lol NOW all of their accounts are closed along with mine!!
I am going to Propay and maybe moneybrookers and I have to wait 180 days for my money from paypal.
nice to know that 8 years of building a history goes out the window because I got bad advice from one of their customer service reps.
I may just move to Amazon all together but I think I will give the other 2 companies a shot first.