An eBay seller is suing the company for violating antitrust laws. Texan Michael Malone claims that eBay engages in “illegal tie-in and steering practices” by pushing members to use Paypal payments. Malone sold a pair of speakers in 2005 for US$200, for which he was charged US$5 in Paypal fees. He believes this to be above the market rate.
I have no idea what credit card processing fees are like in the US, but if Mr Malone would care to have a look at the costs of merchant accounts in Europe, I think he’d suddenly find Paypal fees rather reasonable.
Many thanks to Aaryn for the link.