http://apcmag.com/ebay_boss_not_offering_paypal_is_like_buying_heroin.htm
eBay boss: "not offering PayPal is like buying heroin"
Angus Kidman
06 May 2008
eBay's Australian management held a public meeting for sellers in
Melbourne tonight to justify its plans to make PayPal compulsory.
Things got nasty. Very nasty.
It took only took four minutes
before the booing and hissing began, and not much longer before eBay
vice president Simon Smith was comparing people who didn't want to use
PayPal to drug addicts. APC was there to give you a blow-by-blow
account and pictures from the meeting that saw million-dollar sellers,
specialist cake-tin vendors and proud pornography users united in their
opposition to eBay's plans.
Shirley looks like your typical well-presented middle-aged
suburbanite, and not at all out of place in Preston, a nondescript
suburb in Melbourne's north. Her choice of language as she chats with
her friends is therefore somewhat surprising.
"For them to spruik on that this is about buyer protection and
seller protection is such crap. It's purely about revenue. I'm hoping
somebody else brings this up."
They surely will, Shirley. It's a cold Monday night at the
Darebin Arts and Entertainment Centre in Preston, and several hundred
people have gathered to let eBay know what they think of plans to make
the company's own service, PayPal, the only game in town
when it comes to making electronic payments on the popular auction
site. When the plans were announced in April, a series of meetings was
immediately announced, possibly in the hope people might calm down
before the changes go through in June (assuming the ACCC doesn't object).
Preston was apparently chosen because a high percentage of local
sellers live in this part of Melbourne. At any rate, of the four public
meetings being held to discuss the controversial change over the next
week or so, this has the largest registration.
After this event, the next major attraction to visit Preston is
"Puppetry of the Penis". Even before the meeting proper kicks off, I
get the impression quite a few of the attendees wouldn't mind
inflicting some genital punishment on eBay senior management.
The company is doing its best to mollify people by offering a
wide selection of pre-dinner snacks, including sushi, sandwiches,
sausage rolls and samosas. I nibble on these, but can't help wondering
how eBay would feel if people interpreted auction ending times as
liberally as it interprets the concept of a 6pm start.
At 6:15, harried-looking staff are still putting eBay pens and
notepads on seats in the main hall. At 6:17, some of the sandwiches are
taken away. "We want to have some food when they come out," an eBay
staffer explains to a confused venue manager.
At 6:25, the masses are allowed in, but it's another ten
minutes before things finally get going. Frankly, this does not look
like a major international company poised for a possibly contentious
dispute with its sellers. It looks like opening night for the local
school musical.
Eventually, the eBay team -- regional VP Simon Smith, PayPal
Australia MD Andrew Pipolo and trust and safety director Alastair
MacGibbon -- are brought on stage and seated in front of posters
proclaiming "Making eBay even safer" and "practice safe shopping".
Radio presenter Angela Catterns has been drafted in to, as she
puts it, act as a "moderator". "Referee!" yells someone from the crowd,
setting the pattern for an evening of interruptions and disbelief. "The
idea is that Simon will begin with a brief opening address, then we'll
be opening the floor to you," Catterns, who proclaims herself a
long-time eBay fan, explains.
They came, they heard, they booed
Smith begins by repeating the explanation eBay has been using ever
since it announced this change: PayPal is the most popular and safest
option for buyers, and keeping buyers happy will ultimately produce
more business for everyone. "A happy buyer will spend more for the same
item," he said to mild murmurs of disbelief.
"Not only are buyers protected on PayPal to a much higher
degree, they're much less likely to have a problem in the first place.
It was very hard to justify allowing payment through other relatively
unsafe mechanisms." That mention of unsafe mechanisms earns Smith his
first genuine boos, just four minutes into the presentation. "It does
require some adjustment, some change and change is generally
uncomfortable," he continues over the grumbles.
Then the open mic session begins. "Keep it nice, keep
yourselves nice," Catterns says to the restive crowd. "This is not an
abuse session, it's a Q&A session and I'd appreciate it if you
would approach it in that manner."
The questions in fact start relatively benignly, with a seller
asking if we'll see local versions of the PayPal debit card found in
the US (no plans, says Pipolo) and if the mechanism found Stateside
which allows buyers to pay postage charges directly from their PayPal
account will be made available here.
That option is a possibility, according to Smith. "That's
something we would like to offer in Australia; we trying to figure how
to do that from a product engineering perspective. Postage is one of
our focuses at the moment." The next questioner wants to know if goods
from overseas sellers who don't offer PayPal will appear on the local
site (no, but you can always cheat by using non-Australian eBay site
addresses like ebay.de).
But then the narkiness really starts. The next man applauds the
company's gumption for holding the meetings at all -- "I think it's
very brave of you, there's clearly a lot of vocal opposition" -- but
then well and truly sticks the knife in by noting that Smith's opening
spiel mentioned buyers 21 times and sellers just four times. Are there
any plans to compensate sellers for the costs they'll face in making
the changes and paying extra fees?
Smith's answer is, by eBay standards, quite direct. "You guys
are our customers, you pay the fees -- but what you're paying for are
buyers. You're paying for the five out of six Australian online
shoppers that come to eBay every month. We need to focus very hard on
making sure that the buyers have a good experience. That's why we have
an emphasis on the buyers. And we think that the PayPal fees offer good
value." That last remark earns Smith another round of protracted
booing.
Another speaker says that since the changes were announced, his
sales have dropped by a third. "You're forcing us as sellers to look at
other marketplaces." That comment gets a cheer. Smith responds quickly:
"We've not seen any decline since we made the announcement." With that,
the boos return as loud as ever.
"Unsafe choices"
A common theme from many sellers is that, contrary to eBay's claims,
PayPal is the most troublesome payment mechanism they've encountered.
One seller with 4500 transactions on her record says that her most
recent experience with PayPal resulted in an unjustified chargeback.
Why on earth should she believe that she's four times safer with
PayPal, as eBay claims?
Alastair MacGibbon, who seems to specialise in tortured analogies after a recent clanger on A Current Affair relating to seatbelts,
is quick to respond. "I cross against the lights occasionally and I've
never been hit by a bus, but that doesn't mean it's a good idea."
Predictably, that gets an even louder boo, making the generally
unflappable MacGibbon almost lose his cool. "You can boo and hiss all
you like, I can just tell you the simple facts."
Unbelievably, though, this isn't the most ill-thought-out
analogy of the evening. After some unresolved arguments over the size
of fees and whether eBay deliberately makes it hard for people to
exchange bank details, a speaker pipes up just after 7pm with the core
question of the evening: "How come we are now longer able to offer
freedom of choice to our buyers?"
Smith first points out that most ecommerce sites don't offer
the luxury of choosing between a bank payment and a credit card, but
that fails to quiet the restive crowd. "What about democracy?" someone
yells out. Smith's next response is perhaps not the wisest under the
circumstances: "We're not allowing people to offer unsafe choices, just
like in this democracy you can't go out and buy heroin on the streets."
Telling customers who care enough about your company to attend a public
meeting about its future that their rejection of a payment system makes
them the moral equivalent of drug addicts is not likely to endear you
to them, we'd have thought, but then we are but lowly journalists --
not masters of the online auctioneering universe.
Porn and piñatas
A welcome moment of comic relief comes when an older gentleman in a
long jacket explains that he wants to be able to make purchases which
will arrive at his house in a "plain brown wrapper" without the details
appearing on his credit card, lest his wife sees them. Amidst so much
corporate spin, having a proud pornography user explain why PayPal
isn't always a good idea is a welcome relief. Why shouldn't buyers like
himself have a choice, he asks? "If they wish to take the risk, be it
on their own heads." Smith's response is predictably unpopular: "The
issue is people don't make an informed choice."
Pipolo concurs with the next questioner than the policy of
enforcing PayPal but allowing buyers who pick up goods in person to pay
in cash has created a rather large loophole in the company's buyer
protection scheme. "It is something we are looking at -- I agree, it's
an anomaly."
To avoid getting hit with chargebacks for undelivered goods
under the buyer protection scheme, sellers must be able to provide
proof of postage, but one seller complains that no-one at eBay customer
service seems to be able to say what constitutes effective proof. Using
registered post is apparently the answer, but how is that supposed to
work for volume sellers who have parcels picked up directly? For large
sellers, eBay is considering introducing some sort of "courtesy credit
program" to recognise that a fraudulent non-delivery is unlikely,
Pipolo tantalisingly suggests, though he offers no further details.
Our old friend Shirley stands up, and says that she willingly
acknowledges that eBay has a business imperative: why can't the
company? "You are all about increasing your revenue. Be honest about
it!"
Her question (Catterns has become a tad frustrated at the
number of people offering criticisms rather than asking questions) is
whether this approach will go worldwide. Smith again regurgitates the
company line that this is an Australia-only scheme but may be copied in
other countries.
The next questioner, Steve, says that he makes a million
dollars a year in eBay sales and pays more than $100,000 in fees.
"Things have been good for me, but I fear that eBay's going to take a
turn for the worse. There's going to be a change."
His question also touches on a recurring theme for the evening:
most sellers haven't experienced the claimed
four-times-as-many-problems-with-other-payment-methods that eBay
constantly proclaims. Why is the typical seller experience so much
different to what eBay says is the norm? eBay’s answer -- possibly
accurate but hardly satisfying to this crowd -- is that their
individual customer sample size isn't big enough to be representative.
Many of the question askers have seemed upset, but for sheer
frustration, the tale of the cake tin takes some beating. A woman who
specialises in selling cake tins recounts angrily how she was hit by a
chargeback fee from a German buyer who purchased a tin but claimed to
eBay that she never received her "piñata". Not only was the claim
unjustified, she said, but eBay charged her $25 simply to allow her to
appeal the claim.
The collected eBay executives deny all knowledge of any fees
associated with disputes, though several people sitting near me are
quick to proclaim "That's happened to me too". MacGibbon suggests the
case of the piñata and the cake tin should be reopened for
investigation and asks that she talk to someone outside afterwards. But
the management collective fail to satisfy her with an answer to her
other question: "Why can't I service [non-PayPal customers] just
because you tell me I can't?"
By now, most pretence of asking questions has disappeared. "The
problem may be you don't trust your buyers and sellers, another seller
announces. "You're treating us like little children. We've got an
independent adjudicator here tonight, but that's about the only
independence I've ever seen at eBay. You hide your customer service
line!"
With just five minutes to go, Smith makes a belated appeal to
the collected mob, acknowledging that they are unlikely to be a massive
source of fraudulent transactions. "The problem is not the people in
this room -- the problem is the thousands of people not in this room.
We've had to make hard choices to protect the people in this room."
He also acknowledges that this may impact the size of eBay's
community, but once again rules out any fee changes. "In the short term
at least I think we'll probably take a hit, but we have no plans to
change our pricing. We believe that the sellers will see a healthier,
faster more vibrant growing business in the long term, and that is
their reward." And then, after less than an hour of questions, it's
over.
Presumably nobody was assuming that this evening would go
quietly. Anyone who cares enough about eBay payment options to go to a
Monday night meeting was unlikely to feel neutral about the subject.
But eBay probably didn't help its cause by consistently failing to
offer a justification for reducing choices for sellers and buyers,
beyond offering its standard and tired line about security. It also
needs to give up on the analogies to "help" customers understand why
they need extra PayPal fees foisted on them -- they come across as
either ridiculous or insulting.
Shirley certainly would take a lot more convincing. "They can
lose 25% of their customers and their attitude will be 'who cares?',
because they stand to gain so much more in financial terms," she'd
remarked before the event got underway. Somehow, I doubt anything that
got said would have changed her mind -- or anyone else's.
//
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Waltzing Matilda
Once a jolly swagman camped by a billabong,
Under the shade of a coolibah tree,
And he sang as he watched and waited 'til his billy boiled
"Who'll come a-Waltzing Matilda, with me?" Waltzing Matilda, Waltzing Matilda
"You'll come a-Waltzing Matilda, with me"
And he sang as he watched and waited 'til his billy boiled,
"You'll come a-Waltzing Matilda, with me". Down came a jumbuck to drink at the billabong,
Up got the swagman and grabbed him with glee,
And he sang as he stowed that jumbuck in his tucker bag,
"You'll come a-Waltzing Matilda, with me". Waltzing Matilda, Waltzing Matilda
"You'll come a-Waltzing Matilda, with me"
And he sang as he stowed that jumbuck in his tucker bag,
"You'll come a-Waltzing Matilda, with me". Down came the squatter, mounted on his thoroughbred,
Up came the troopers, one, two, three,
"Who's that jolly jumbuck you've got in your tucker bag?"
"You'll come a-Waltzing Matilda, with me". Waltzing Matilda, Waltzing Matilda
"You'll come a-Waltzing Matilda, with me"
"Who's that jolly jumbuck you've got in your tucker bag?",
"You'll come a-Waltzing Matilda, with me". Up got the swagman and jumped into the billabong,
"You'll never catch me alive", said he,
And his ghost may be heard as you pass by that billabong,
"Who'll come a-Waltzing Matilda, with me?" Waltzing Matilda, Waltzing Matilda
Who'll come a-Waltzing Matilda, with me
And his ghost may be heard as you pass by that billabong,
"Who'll come a-Waltzing Matilda, with me?"
//
//
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eBay Developer Important Security Update - Oh Please!
eBay Developer Important Security Update - Oh Please!
10 August 2009
EventHorizon1984
In the article "Passwords compromised for eBay developers," Chris Dawson of TameBay wrote:
We're not surprised this happened. The surprise is eBay in public admitting a "security flaw".
The equivalent of code monkey felgercarb can be found in this security announcement from the eBay Developers Program blog, regarding the "possible security flaw":
Important Security Update: developer.ebay.com
Posted by Laurel Kline in Critical Notes from Tech Support, Business News & Developer Website
Monday, Aug.10.2009, 3:06 PM PT
This is Kumar Kandaswamy, and I manage the eBay Developers Program. I'd like you to read this important message about account safety.
The safety and security of the eBay Developers Program is a top priority. While we believe that people are basically good, we also must live with the reality that there are fraudsters out there who have made it their illicit "profession" to find ways to exploit others on the Internet.
Occasionally, fraudsters attempt to gain unauthorized access to the eBay Developers Program. eBay has recently identified a means by which someone could gain access to eBay Developers Program account information. This type of access DOES NOT allow the capture of financial or other sensitive information, such as credit card or bank account information or Social Security numbers. Fortunately, we have not detected any unusual activity with any Developer account.
Out of an abundance of caution and to help ensure the security of the eBay Developers Program, we are requiring that all developers take the following steps:
If you believe you or your customers have been the victim of fraudulent activity, contact us immediately at developer-relations@ebay.com.
Sincerely,
Kumar Kandaswamy
There's much unintentional eBay humor with the statement from Kumar Kandaswamy that "safety and security of the eBay Developers Program is a top priority." Because historically that has not been the case.
Follow us.
Once upon a time Sergiu Daniel Popa was brought to the attention of the public by Dan Browning of the Star Tribune. As reported in his article "Suspect in 'phishing' scheme indicted":
Days later there would be a post about the article on the eBay Stores Forum. This was followed quickly by eBay user ID spopa2006 stating, "Listen guys. I am Sergiu D. Popa. I am that horrible guy!" and "I will make your life a hell." And much much more.
When this activity and background was reported to eBay, their reponse was to delete the spopa2006 posts. He was able to keep his eBay account active. If you look quickly, you can view his Feedback Profile as of 11 August 2009 01:07 GMT.
This all would be rather uninteresting save for the fact that spopa2006 was a poster on the eBay Developer forums:
The activities of a registered eBay Developer. You know the ones who work on the software that eBay buyers and sellers use.
Feeling that "safety and security" yet?
Oh, and did we forget to mention that this took place in 2007? For those interested we kept the details in a June 2007 article, Sergiu D. Popa Response To Dan Browning Star Tribune Article.
Well there is innocent unless proven guilty.
BAMM!! But wait, there's more.
In October 2008 Dan Goodin followed up with "Romanian national cops to $700,000 phishing trip":
Kumar Kandaswamy is crowing about protection from "fraudsters attempt to gain unauthorized access to the eBay Developers Program", but described here is a convicted hacker who eBay gave Developer Program access?
With spopa2006's regular eBay account active, you have to wonder if his Developer Program access remains active. And if he gave others access to his account, during his extended absence.
Kumar Kandaswamy said, "we have not detected any unusual activity with any Developer account".
Oh, Please!
How many times does a warning have to be given to eBay before someone listens?
And given the lax vetting process, one really has to wonder if there are other "Popa's" signed up to the Developer Program?
.
"So, people hire you to break into their places... to make sure no one can break into their places?"
"It's a living." Martin Bishop, Sneakers (1992)
//
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Posted on 11 August 2009 at 19:14 in Commentary, eBay, eBay Customer Service, eBay Spotlight, Fraud, Legal | Permalink | Comments (0) | TrackBack (0)
Technorati Tags: Chris Dawson, Dan Browning, developer-relations@ebay.com, developer.ebay.com, developer.ebay.com, eBay, eBay Developer, eBay Developers Program, fraudsters, Kandaswamy, Kumar Kandaswamy, Laurel Kline, Passwords compromised for eBay developers, Popa, popa dan sergiu, security, Sergiu D Popa, Sergiu Daniel Popa, spopa2006, TameBay
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