The Australian division of eBay subsidiary PayPal has confirmed it will reimburse customers left out of pocket by the collapse of local eBay seller EBS International.
EBS international sold equipment such as bikes and exercise equipment on eBay and other sites, but went into administration last week.
Those who paid for goods using PayPal but didn't receive them or a refund from EBS International will be reimbursed by PayPal. A PayPal spokesperson estimated the number of customers to be around 2,500, but couldn't name a dollar figure.
"Given the unique nature of this, and the size ... we're looking after our customers," the spokesperson said.
There wouldn't be a limit on the amount of money which the company would pay out, they continued, but added that the criteria for refund still needed to be worked out. "We don't know if everybody is due for a refund."
When the company has a better handle on the situation, customers will be contacted via message boards. At the moment, the spokesperson said, "it's all a bit fluid".
An eBay spokesperson responded to reports that the company could have acted sooner to shut down the EBS International by saying it followed its normal process.
It was in eBay's interest to identify companies with problems, said the spokesperson, as it has become a creditor as well. "eBay is owed just as much as buyers," they said.
I received a refund from Paypal after lodging a dispute a month ago. Paypal initially refused to refund me even though I won the case, stating that EBS's account had no funds. But after a few emails and phone calls, I received the refund.