Auction Payment
Online auction and its payment procedures are pioneered, developed, and reinvented by the market leader, eBay. And over the time the company has become synonymous with Online auction industry . The auction site eBay is the first company to popularize the notion of conducting an auction over the Internet. eBay's auction software is proprietary and is not available to the general public. Other auction engines, including Beyond Solutions, Siebel, Moai Technologies and Net merchants are some of these firms that customized the auction payments to target the specific requirements of various vertical markets.
The electronic application is principally aimed at commercial transactions and the processes are money transfer, supply chain management, e-marketing, and electronic data interchange. Moreover, Automation of data collection systems and automation of inventory management systems are intergral part of advanced e- technology.
According to available figures from Forrester research the total worth of sales generated through the electronic commerce are 12.2 billion in the year 2003.
In a fast changing technology dominant social engineering environment, just by understanding the payment procedures adopted by eBay, one can familiarize with the auction payment concept. Moreover, how a pioneer like e Bay guards its status in the competitive market place, can be gauged by the analysis of recent controversy over auction payment with Google.
Though Google's new online payment service offers fraud
protection and payment guarantee, it didn't make the cut for the Internet's largest auction site ebay.. eBay recently said that it would not consider the google- check out payment services.. eBay states on its Web site that it chooses payment services based on safety and convenience, but it also lists several other factors that come into play. They include financial, privacy and fraud protection; simplicity of the payment model; a company's regulatory status; the identity, background and other business interest of the payment service sponsor and whether there is a track record demonstrating reliability.
Google Checkout, is the competitor to PayPal, eBay's own payment service, in some arenas. eBay also has a partnership with yahoo, and allows12 other on line payment service on its site that signals competition for Google.
The auction site eBay considers the following factors, along with other parameters to determine.
Whether the model of payment provides sufficient financial, privacy and anti-fraud protection for buyers and sellers.
Whether the model of payment raises the potential for confusion among eBay users, or involves incentives that may present fraud concerns.
Whether the payment model involves precious metals, or other non-cash (points, miles, minutes, coupons, discounts) as consideration.
Whether the provider of payment is having a substantial business track record of ensuring safe, efficient, and reliable financial and banking services.
The payment service sponsor s identity, background and other business interests.
The payment providers regulatory and license status in other countries.
Offline payment methods are not as efficient while offering the levels of convenience and fraud protection as online payments.
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