CheckFree announced a new online payment service at last week's eBay Live conference. The service allows buyers to settle eBay purchases directly from their checking or money market accounts. The service capitalizes on CheckFree's existing electronic billing and payment services.

"At CheckFree.com, there is a large base of consumers who today use the site's electronic billing and payment services," said CheckFree's David Fontaine. CheckFree was founded in 1981 and provides financial electronic commerce services and products.

To utilize the new service, both the buyer and the seller must be enrolled in CheckFree's system. A buyer on eBay authorizes payment to be sent to seller, and funds are withdrawn from buyer's checking account. There is no way to retract a payment, and CheckFree says sellers are guaranteed funds once they get a payment confirmation email. The service is free for buyers, and sellers pay 1.85% plus 30 cents per transaction.

http://auctionpayments.checkfree.com