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EcommerceBytes-NewsFlash, Number 1912 - November 06, 2008 - ISSN 1539-5065     | Next
eBay to Remove Negs for Sellers Impacted by PayPal eCheck Glitch
By Ina Steiner
EcommerceBytes.com
November 06, 2008




eBay will remove negative feedback for transactions affected by PayPal's eCheck glitch, according to PayPal spokesperson Michael Oldenburg. He also said the majority of pending payments have been released. There are a few sellers left whose funds have not yet been released, which PayPal will address over the next few days. He could not provide data on how many accounts had been affected, but said it was "an extremely small percentage of PayPal accounts."

The problem occurred for over a week and prevented sellers from receiving eCheck payments into their accounts, even after they showed up as "cleared" by PayPal. Sellers had the choice of either sending items to buyers without having been paid, or hold off and risk receiving bad feedback from buyers angry for the delay in receiving their items. Sellers were also unable to automatically print shipping labels for those orders. Oldenburg said once the funds are released, sellers would regain that functionality. In the interim, they can create a manual label.

eBay will remove negative and neutral feedback - and low DSR scores - to those transactions affected by the eCheck issue, according to Oldenburg. "This is definitely not a traditional recourse," he said, but "it could have an impact on people's business." PayPal will share a list of sellers affected by the problem with eBay over the next several days, and eBay will monitor feedback for 60 days (the length of time a buyer can leave feedback). Sellers will be able to check to make sure eBay removes negative and neutral feedbacks of affected transactions, but they may be unable to check DSRs, since eBay lets buyers leave DSRs anonymously.

Sellers had questioned whether eBay would extend interest on held funds to them. For sellers enrolled in PayPal's Money Market, eBay will pass along the interest they would have earned had the money been in their accounts. But for those who had wanted to withdraw their money and deposit it in their own interest-bearing accounts, they are out of luck if they are not enrolled in PayPal's Money Market.

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