eBay launched a credit program for buyers through its PayPal online payment service. PayPal Buyer Credit provides buyers with a line of credit they can use to fund PayPal purchases, subject to credit approval. PayPal purchases funded using PayPal Buyer Credit are transparent to sellers. When buyers use PayPal Buyer Credit, sellers get paid in full by PayPal as soon as the items are purchased.

The PayPal payments are no different than if buyers pay with PayPal and use a credit card to fund the purchase. Sellers will not be responsible if buyers fail to pay these charges made to their PayPal Buyer Credit line. eBay said the process is no different than if buyers pay sellers with a credit card and fail to make their monthly credit card payments.

Credit lines are determined by the credit history of buyers. Once buyers are approved for credit, they will be told the amount of their credit line. At this time, only buyers residing in the U.S. with a U.S. PayPal account can apply and be approved for PayPal Buyer Credit.

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