eBay and PayPal Increase Protections for Buyers and Sellers to Shop with Confidence

Pay with PayPal on eBay and You're Covered
CHICAGO--(Business Wire)--
eBay (Nasdaq:EBAY) and PayPal today announced improved protections
for buyers and sellers on eBay.com, in time for this year's holiday
shopping season. For the first time, buyers who pay with PayPal will
be protected on eligible transactions for 100 percent of an item's
purchase price, with no cap on coverage. In addition, all U.S. eBay
sellers will receive improved seller protection for eligible
transactions when they get paid with PayPal.

"We're combining the power of eBay and PayPal to give all buyers
and sellers more confidence and trust," said Lorrie Norrington, eBay's
president, Marketplace Operations. "Buyers who pay with PayPal on eBay
will be covered, with no limits, on most transactions. Any seller who
gets paid with PayPal will be covered on most transactions, too, and
can ship to 190 countries worldwide where PayPal is accepted."

Norrington will introduce the protections at the company's seventh
eBay Live! community conference. Currently, 97 percent of eBay.com
listings offer PayPal and over 90 percent of active eBay users in the
United States have PayPal accounts. PayPal Buyer Protection covers
eligible transactions on eBay.com for items that aren't received and
for items that are significantly not as described. Beginning this
Fall, PayPal will remove the coverage limit, giving buyers more
confidence when they pay for their eBay purchases with PayPal.

PayPal's improved seller protection covers sellers against claims,
chargebacks and reversals due to an unauthorized payment or an item
that was not received. Under this improved protection, sellers can now
ship to buyers in 190 markets worldwide where PayPal is accepted and
still be eligible for protection. PayPal's seller protection is
provided without any additional cost, and beginning later this year,
PayPal will remove the annual coverage cap.

PayPal's increased buyer and seller protections will take effect
this Fall.

"Today's announcement makes it simple for our customers - we're
providing protection whether a transaction costs $50 or $50,000," said
Scott Thompson, president of PayPal. "As PayPal celebrates its 10th
anniversary this year, we're pleased to deliver these new
protections and allow customers to shop on eBay with even more
confidence."

Additional Incentives and Rewards for Great eBay Sellers

Along with new payment protections, eBay also introduced at eBay
Live! incentives and rewards for its best PowerSellers.

For PowerSellers, eBay announced a discount program rewarding
sellers who consistently provide the very best customer experiences,
as measured by eBay's Detailed Seller Rating (DSR). DSRs are a
scorecard that buyers use to rate sellers on a 0-5 scale (five being
the highest) across four key success metrics. Sellers with DSRs of at
least 4.9 across all four categories will receive 20 percent off their
Final Value Fees, which are the commission eBay charges sellers for
sold items. Sixteen percent of PowerSellers immediately qualify for
the discount, which will appear on July invoices.

In addition, deeper UPS shipping discounts were announced for
PowerSellers, on top of savings introduced last year. PowerSellers
will now receive an extra 23 percent off already reduced Daily rates
for ground shipping by UPS.

eBay Live! continues this week through Saturday, June 21. More
information about these announcements and other happenings at eBay
Live! can be found at http://www.ebay.com/eBayLive/.

About eBay

Founded in 1995, eBay Inc. (Nasdaq:EBAY) connects hundreds of
millions of people around the world every day, empowering them to
explore new opportunities and innovate together. eBay Inc. does this
by providing the Internet platforms of choice for global commerce,
payments and communications. Since its inception, eBay Inc. has
expanded to include some of the strongest brands in the world,
including eBay, PayPal, Skype, StubHub, Shopping.com, and others. eBay
Inc. is headquartered in San Jose, California.

About PayPal

PayPal is the safer, easier way to pay and get paid online. The
service allows anyone to pay without sharing financial information and
gives consumers the flexibility to pay in any way they prefer,
including through credit cards, bank accounts or account balances.
With more than 60 million active accounts in 190 markets and 17
currencies around the world, PayPal enables global ecommerce. PayPal
is an eBay Inc. company (Nasdaq: EBAY). More information about the
company can be found at https://www.paypal.com.

PayPal
Michael Oldenburg, 408-967-5033
moldenburg@paypal.com
or
eBay
Usher Lieberman, 408-376-4809
ulieberman@ebay.com

Copyright Business Wire 2008