PAYPAL DENIES TO REFUND

Last week ABC television's 7.30 Report investigated into the world of cyberspace criminals and launched an inquiry on whether eBay was doing enough to protect its members from unscrupulous sellers. One of the buyers Debbie Robbins from NSW, who filed a claim and completed PayPal's statutory declaration, was initially denied a refund.

Ms Robbins had purchased a spa from EBS for $1325. She was fully reimbursed for two other items totaling about $700 purchased from the defunct seller. She says that they were found ineligible because they missed the June deadline though they knew nothing of the deadline. Moreover, in light of PayPal’s policy of not commenting on individual cases customers have no opportunity to contact the company for detailed information.

In addition the 7.30 Report spoke about eBay's policy of not conducting 100-point identity checks for sellers and buyers. As it was noted by EBay spokesperson Daniel Feiler a 100-point identity check is considered to be useless to curb fraud. In this connection Former Communications Law Centre director Elizabeth Beal has another view. She says that eBay see no real motivation to stop fraud as the company benefits from fraudulent sellers because they still collect the fees.

OZtion and Trading Post, eBay competitors, conduct another policy. They say that the 100-point ID check is a must for retailers who are serious about doing business online. Both companies partner with Australia Post to conduct the verification process.

OZtion said its security identification model and fraud prevention services reduced the likelihood of fraudulent sellers operating on its site.

Trading Post, which recently launched an auction component, said it was very conscious of the potential for fraud online and took customer security extremely seriously.

by EcommerceJournal