The New York Times reports that eBay is considering making PayPal the only form of payment allowed on eBay auctions. The company is test marketing this concept in Australia starting next month, and loyal eBay buyers and sellers there are furious.

eBay's stranglehold on internet auction enthusiasts is already clear. It is the most popular auction site, and if you're a seller, you have few other choices that get you as much exposure. But that's not enough for eBay. In addition to all the fees generated from auction listings and sales, they apparently want to ensure that they'll get extra fees from the payments if they require everyone to pay with PayPal.

Company officials say this move is an effort to cut down on fraud. They say that by requiring the use of PayPal, they are able to see buyers and sellers through the payment process, rather than them risking fraud through the use of outside payment services.

Do they really think that we're gullible enough to believe that it's all about cutting down on fraud? I don't believe it one bit. This article suggests that PayPal cuts down on fraud by quoting eBay's reduced fraud costs shown in their financial statements. What readers may not realize, however, is that these figures only take into account the losses that eBay is on the hook for. What about all the losses that are eaten by the buyers and sellers who were cheated? And there are plenty of horror stories from users of eBay!

PayPal is an expensive form of payment. In the U.S., it costs sellers 2.9% of the selling price plus 30 cents for any eBay sale under $3,000. Those fees add up quickly, especially if you're selling low-priced, high-volume items. It's even worse in Australia, where PayPal takes 4.4% plus 30 cents.

eBay sellers in Australia are speaking out against this policy because they say it will further eBay's monopoly and cost them too much money. I agree. And if eBay does try to bring a policy like this to the U.S., I expect a huge backlash from sellers.

Tracy L. Coenen, CPA, MBA, CFE performs fraud examinations and financial investigations for her company Sequence Inc. Forensic Accounting, and is the author of Essentials of Corporate Fraud.