A new policy
at eBay's payments unit is resulting in frozen funds for some
sellers. And while it's always unexpected to see politics
directly impact the world of collecting, it's not uncommon.
Sellers began reporting in April that PayPal was freezing
payments for coins and stamps originating in countries such as
Cuba and North Korea - despite the fact that the sellers and
items were not located in those countries. Belgian auction site
Delcampe notified its members this month, explaining that at the
beginning of May, "PayPal froze payments for items including the
name of the countries subject to U.S. embargo (Cuba, Iran, Ivory
Coast, Iraq, Lebanon, Libya, North Korea, Somalia, Sudan, Syria,
Yemen, Zimbabwe)."
Delcampe told its members PayPal had not notified it of the
new policy, but said it contacted the eBay payments unit
immediately after reports from sellers began surfacing.
According to Delcampe, "They told us that this was the
application of a new measure. The overall principle is that the
sale of goods cannot bring money to countries under embargo,
because in this case they are automatically blocked. This
blocking is but only temporary when the names of countries in
question are only included in the title of the item and the sale
does not bring any money to countries under embargo. This is the
case for the vast majority of collectibles sold on our site."
A spokesperson for PayPal sent the following statement to
EcommerceBytes in response to our inquiry:
"PayPal makes every effort to comply with the laws and
regulations in the countries in which we operate around the
world. In order to comply with government regulations, in April
PayPal began to no longer process payments for coins, currency
and stamps originating in U.S.-sanctioned countries. To avoid
being impacted by this change, we recommend that businesses stop
offering PayPal as a payment option for the sale of
U.S.-sanctioned goods or services or to pay for shipping these
goods to sanctioned countries."
Controversy often swirls around the world of collecting. One
notable case - back when Yahoo had an auction site, it got in
trouble thanks to France's ban on Nazi material.
But apparently it's not just collectibles dealers being
impacted by PayPal's new policy. The UK newspaper
the Independent reported in April that PayPal had shut down
the account of a coffee merchant in England who was selling
Cuban coffee beans, despite the fact they weren't selling the
beans to U.S. customers. "The UK does not and never has operated
an embargo on Cuban imports," the newspaper stated.
So merchants and dealers, consider yourself warned if you
wish to sell items originating from U.S. foes - think twice
before offering PayPal in those listings.