eBay told developers that it would begin requiring sellers to offer Paypal as a payment method for all listings for events taking place in the states of Florida, South Carolina and Louisiana due to new legislation in those states.
The three states recently passed new ticket resale legislation that removes existing restrictions on sales above face value if certain conditions are met by the entity facilitating the resale, eBay stated. Sellers must accept PayPal on listings so that eBay can offer a special buyer protection plan through PayPal that is being created for compliance with those laws. Buyers will not be required to pay with PayPal, but if they select another payment method they will not be covered under the special protection plan.
Sellers who do not have a PayPal account will need to open one before creating listings for events taking place in these states. Sellers will be permitted to offer alternative payment options as long as they also offer PayPal. eBay told developers that sellers would receive an error message if they failed to offer PayPal for events based in Florida, South Carolina and Louisiana, including from API-enabled developer tools
http://ebaydeveloper.typepad.com/dev/2007/03/change_to_polic.html
