EBay Removes Caps On PayPal Fraud Protection

June 20, 2008 11:21 a.m. EST

Los Angeles, CA (AHN) - Internet auction giant eBay said Thursday it will remove monetary limits on how much buyers or sellers using PayPal will be refunded in case of fraud.

The changes include elimination of a $200 limit (or $2,000 cap for seller's with outstanding reputations) for buyers and a $5,000 annual limit for sellers.

The upgraded fraud protection is just the latest effort by eBay to entice online auction users. In the past, the company has required lower fees for power sellers, enhanced its feedback options and other strategies in order to combat Amazon.com's encroachment on the Internet auction turf.

A number of the new tactics were launched after John Donahoe replaced long-time CEO Meg Whitman earlier this year.