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Online auction site eBay Inc. and Visa U.S.A. today have announced a marketing agreement that will promote Visa as a primary payment option on eBay. Through eBay's payment subsidiary, Billpoint, eBay sellers can now accept Visa payments "within minutes" of enrollment.
To help build card usage across eBay's claimed 10 million registered users, Billpoint and Visa will waive all payment processing fees for Visa transactions closed on its system through the end of May, San Francisco-based eBay says. As part of the agreement, Visa will use its marketing and promotional expertise to help build awareness of eBay within and outside the eBay community. The partnership, which officially begins April 10, 2000, stems from the "overwhelming" demand for credit card acceptance on eBay, the companies say. To date, the majority of the $4 billion in gross merchandise sales transacted through eBay involve payment by check and money order, they say.
"The trust that consumers have in the Visa brand will enable us to enter new markets like the person-to-person environment and provide e-Bay's online shoppers with the most convenient way to pay for everything from beanie babies to Elvis records," says Bond Isaacson, executive vice president of Visa U.S.A. and head of the company's e-Visa unit. Billpoint began its rollout to eBay sellers on March 1. The service will be available to the entire eBay seller community over the next several weeks, San Francisco-based Visa says.