We don't often get over 100 comments on a single story, but after this recent segment drew hundreds of soapbox emails and over 250 online comments, we knew we had a serious issue for our viewers.

The story to this point 

eBay's recent decision to restrict payment methods to just one, PayPal, came after what they say was due to an unacceptable level of disputes and fraud. Indeed, Sunrise has covered eBay scams on a previous story.

The PayPal decision has drawn heavy criticism from users of our site and their own forums.

We asked OZtion about how they police online auctions with systems that eBay say lack security.

In late breaking news, eBay now claims to not be even "mulling" using the same controversial policy for it's US site.

"There are US market-specific reasons why PayPal-only is something we simply cannot do in the US." Read full statement

OZtion responds

1. We notice you have Photo Identification and Address Verification. What other security measures do you employ to avoid online fraud?

To ensure that OZtion remains a safe and reliable place to trade, OZtion requires members to create a Seller's account before they commence selling. We only allow members from Australia and New Zealand to sell on OZtion. They have the option of selecting either Credit Card Verification, Australia Post Verification, Address Verification or Photo ID Verification. More.

We also have in place our Safe Trading Guidelines which clearly outline to both buyers and sellers how to safely trade on OZtion. Buyer Shield, a buyer protection program was recently launched also offers buyers protection of up to $400 when purchasing eligible goods online. 

2. As a relatively new player in the field, isn't it likely that your own security measures will need to evolve as your site becomes more popular and more problems inevitably emerge?

Since the launching of OZtion in 2005, our security measures have constantly evolved and they will continue to do so. Our latest initiative was to partner with Australia Post and offer a 100 point ID check for sellers. We also have many procedures and guidelines displayed on our site which members can easily follow.

3. Can you please indicate what is the rate of incomplete transactions that take place on your site, which payment method causes the most issues and what percentage of auctions end in disputes?

Only 0.2% of transactions result in being disputed and of those disputes, 80% are resolved. We have found that most disputes can be effectively resolved through direct communication between members. Bank deposits, although preferred by members, would create issues in the long run due to no recourse being available for funds to be returned to the buyer lodging the dispute.

4. eBay's fees are not widely understood. How does their setup compare to the OZtion fee structure?

On OZtion it is FREE to list items and we have a Fee and Fee Calculator page which enables sellers to clearly identify what the projected sale fee would be for their sold item(s).

5. eBay employs a third party to mediate serious disputes. What is the OZtion process for disputes?

Our dispute resolution process is controlled by our disputes officer. All disputes are handled without any bias to either parties and appropriately offers each party the opportunity to present their case and provide their full version of events associated with the particular dispute raised. All cases are thoroughly dealt with in order to provide, where possible, an amicable resolution for both parties.

7. If you require users to transfer money to an account that you administer, isn't this a very similar arrangement to PayPal?

All sellers have a pre-paid account on OZtion which is used to pay for sale fees, verifications and any promotional features, this is not used to complete transactions. All buyers pay a seller directly for any items they have purchased.

8. Why are users' account balances non-refundable if this is their own money?

Our Help page clearly outlines details of a sellers pre-paid account and they are also advised when making any credit into their account that the funds are non-refundable.

Kind Regards, Sarah
OZtion Customer Service
OZtion Pty Ltd
www.oztion.com.au

Related links 

eBay forcing users to pay their pal