Ebay: Sellers May Not Solicit Cash Payments

Posted on April 5, 2006

eBay has banned cash payments on eBay listings. They are also actively deleting listings by sellers offering to accept cash via postal mail.

Matt Halprin, eBay's global policy VP, says in a statement, "The U.S. Postal Service tells us it's unsafe, and now eBay is telling everyone that it is unsafe. So if a seller solicits or encourages offers to accept cash, [they are] encouraging unsafe payment methods and we do remove that seller's listing."

Some PowerSellers argue that eBay is trying to force them to use its PayPal digital payment system. eBay's Safe Payments Policy can be found here. Here is the text that bans cash payments:

Not permitted on eBay.com: Sellers may not solicit buyers to mail cash. Sellers may not ask buyers to send cash through instant cash transfer services (non-bank, point-to-point cash transfers) such as Western Union or Moneygram. Sellers may not ask buyers to pay with Stormpay. Finally, sellers may not request payment through online payment methods not specifically permitted in this policy.

eBay says violations of its policy may result in a range of actions including the cancellation of listings, limits on account privileges, loss of PowerSeller status and suspension. eBay sellers are clearly going to have to forget about accepting cash.

We couldn't find a similar ban at Yahoo's Auction Help. However, they do warn buyers to be cautious about sellers requesting cash payments. They also recommend caution if the seller "asks for the payment to be sent to a post office box or a different location than listed on the seller's Auctions Profile." Good advice.