eBay's Google Checkout Ban: Hold the Rotten Tomatoes

Rob Hof

eBay has come in for a lot of criticism for its decision to exclude Google Checkout from the online marketplace's list of accepted payment methods. But a number of folks have noted that perhaps the criticism is premature. For one thing, it's undeniable that Google Checkout is unproven in terms of reliability and fraud protection, and there's no reason to assume at the outset that there won't be problems. Probably can't blame eBay for being cautious. One ex-PayPal employee lists several reasonable reasons for eBay to wait and see.

What's more, Google Checkout doesn't allow PayPal as a payment method. Hmmm. One would hope tit-for-tat doesn't determine policies, but clearly Google isn't completely open either, even for a payment system that actually is proven (if not perfect).

That said, my clear impression from folks at eBay is that the timing for allowing Google Checkout as an accepted payment system will coincide with a cold day in hell. If in fact Google Checkout checks out and proves not to have fraud or other problems after a few months, and eBay still hasn't approved it, then you'll know what's really at work here. Until then, eBay deserves some slack.

Before it's here, it's on the Bloomberg Terminal.