AuctionChex founder and CEO Eddie StClare said buyers would no longer be able to use PayPal to fund purchases through the UK-based AuctionChex service. According to StClare, PayPal has changed its support for all Money Services Businesses (MSBs). Buyers will still be able to use AuctionChex to pay for auction and eBay purchases, but they will have to select a different option to send payment to AuctionChex.
StClare said there were other, easy alternatives for UK and European buyers, but, "for the rest of the world it is not cost effective to send a payment to the UK - that's why we existed. So buyers in Australia, Russia, Malaysia etc will find it very difficult to buy from the USA where the seller does not accept Paypal from non US buyers." AuctionBytes wrote about the AuctionChex service in July.
StClare said the Paypal policy change would adversely affect its transaction volume, but that it would be a manageable change. "AuctionChex will survive and continue to operate just as it has done since 2003, albeit with less payment options for buyers to use." He also said that the PayPal policy change is a global policy change and affects all MSBs. "It is not a reflection on AuctionChex as a business, we have enjoyed a good trouble free relationship with Paypal since early 2006."
AuctionChex posted an announcement about the changes on its website.
