The Australian Bankers Association and The Reserve Bank are asking the Australian Competition and Consumer Commission (ACCC) to stop eBay from forcing eBay customers to use its PayPal service to make payments on the online auction website. EBay intends to introduce this rule change on 18 June and the ACCC has given interested parties until the 2 May to make submissions on the move. EBay says the rule change is intended to increase the security of its service.

EBay has applied to the ACCC for an exemption from the Trade Practices Acts in order to stop vendors from using other payments methods, such as direct bank deposits, cheques and money orders, on its online auction website. An option of paying on delivery will still be available under the plans.

If the new change is adopted in Australia, eBay is expected to introduce the same rules across its global websites. Last year, eBay faced a class action lawsuit in California over allegations PayPal sought to improperly monopolise the payment options of eBay sellers. EBay runs a blacklist of prohibited payment options on its website. Its rival internet payment service Google Checkout was added to this list in June 2006.