PayPal competitor unveils details on eBay services

by Don Reisinger

ProPay, a company that specializes in credit card processing and electronic payment services for businesses, announced pricing details for eBay users ahead of its unveiling as an alternative payment option on the auction site later this month.

As eBay announced in August, it will soon only allow electronic payments across the site. Part of that plan was to bring on new electronic payment services to compete with PayPal and ease concerns over the company's total control over payment processing. Aside from accepting credit cards, eBay's solution was to give sellers the option to use ProPay's service.

ProPay was quick to point out that it doesn't want to be considered a full PayPal competitor and instead tries to position itself as a company that caters to power sellers who plan to accept credit cards. That may be a good idea considering users will be forced to pay monthly fees on top of transaction costs -- something most PayPal users aren't required to do.

For eBay Silver power sellers and higher, ProPay unveiled its eAuction account, which will be available once ProPay goes live on eBay. It will carry a $24 fee billed annually or a $2 monthly charge, but the company is offering a $24 credit for sellers who process $3,000 or more with ProPay during their first six months using the service. The plan will carry transaction fees, but ProPay wouldn't reveal those figures at this time. It would only say that they will be comparable to fees charged by "other services."

For those needing more than the basic offering, ProPay will unveil the eAuction Pro Account later this year for eBay Silver power sellers and higher who not only sell goods on eBay, but also need specialized services for processing credit card transactions in other areas.

The eAuction Pro Account will offer all the features available in the standard eAuction account and add an online virtual terminal, touch-tone phone processing, email invoicing, and a secure card reader that will immediately send the card-holder's information over an encrypted connection to ProPay's virtual terminal to verify funds. According to ProPay, the fee for the Pro account will be $240 and the transaction fees will be identical to those charged in the standard account.

ProPay should be available for eBay users by the end of October.