eBay Australia's ban on all payment methods except for its own PayPal service may prevent some sellers from being eligible for the company's standard Seller Protection Policy. The initial announcement gave sellers two options, PayPal and "Pay on pick up (i.e. paid for when picking up the item)" - see http://www2.ebay.com/aw/au/200804101058562.html. However, pages detailing the new policy state that PayPal must be offered in pick-up situations (http://pages.ebay.com.au/useprotection/changes.html).

eBay requires sellers to provide proof of delivery in order to be covered by its Seller Protection Program. Sellers are concerned that unscrupulous buyers may pay via PayPal, pick up their items, then file a claim of non-receipt. In that situation, sellers would be unable to provide eBay with any proof of delivery that would be acceptable under the program. (It also remains unclear how paying via PayPal before picking up items from the seller meets the definition of "pay on pick up".)

One seller wrote to AuctionBytes, "Thus from mid May anyone in Australia selling a "pick-up-only" item (other than the exceptions such as motor vehicles), must offer PayPal as a payment option and are not entitled to refuse the payment, but because they can not supply "proof of shipment", if the buyer simply says they did not receive the item the funds will be returned to the buyer."

A moderator in the discussion board confirmed that sellers who offer pay on pick up must offer PayPal in their listings, and would be unable to reject a PayPal payment in that case (http://forums.ebay.com.au/thread.jspa?threadID=600078539).

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