Important News: Ebay effectively bans all grading companies other than PMG, PCGS

[GemCurrency]

Excerpted from Ebay website

 

"Single notes listed in the Coins & Paper Money > Paper Money: US or Coins & Paper Money > Paper Money: World with a starting bid price, reserve price, or Buy It Now price of $2,500 or more must receive a numeric grade from an approved grading company, and the numeric grade must be included in the listing. This requirement doesn't apply to collections, lots, or sets listed within the Coins & Paper Money > Paper Money: US or Coins & Paper Money > Paper Money: World.

Approved grading companies:

 

Paper Money Guaranty (PMG)

 

Professional Currency Grading Service (PCGS Currency)

 

Criteria for approved grading companies

To be an approved grading service on eBay, the grading company must, at minimum, meet the following objective criteria:

 

The service has graded at least 100,000 pieces of currency.

 

The service provides a live, online & accurate population report of graded currency.

 

At least one of the company principals should be a member of the Professional Numismatists Guild.

 

There are at least 2 graders on staff who are considered currency experts within the trade. A currency expert is an individual who has worked as a full-time numismatist (with a specialty in currency) for at least 5 years. Both graders should be members in good standing of the American Numismatic Association (ANA) and Professional Currency Dealer Association (PCDA).

 

The service provides a written buyback guarantee for currency later determined to be counterfeit, damaged, repaired, misgraded, or misattributed (not inclusive of mechanical or typographical errors related to the holder itself). This guarantee must apply to ALL notes encapsulated under the brand name of the currency.

 

Third-party-graded (certified) currency must be encased in a unique, tamper resistant holder with anti-counterfeiting measures (such as a hologram or other method).

 

The service enables online verification of unique certification numbers.

 

If a piece of currency isn't graded by one of these grading companies, it's considered raw and must meet the requirements for raw paper currency listings."

[yonico]

It's about time ?

[Nutmeg Coin]

The PCGS currency thread: http://forums.collectors.com/messageview.cfm?catid=23&threadid=946004&STARTPAGE=1

 

It may be challenged on questions of legality:

 

"This is essentially restraint of trade and a great example of crony capitalism. You have a duopoly with massive barriers to entry. The stipulation that a grading service has to grade 100000 notes before they are considered for approval is a joke and as arbitrary as can be. What does that mean? Do I go to the bank and start buying packs of FRNS? This is crony capitalism pure and simple.

 

"Now, when you can't get your notes back from any service within 6 months and they are charging you whatever they want...you can thank eBay.

 

"It wouldn't surprise me if there are lawsuits over this.

 

 

"As used in the Sherman Anti-Trust Act (15 U.S.C.A. § 1 et seq.), unreasonable restraints of trade are illegal per se and interfere with free competition in business and commercial transactions. Such restraint tends to restrict production, affect prices, or otherwise control the market to the detriment of purchasers or consumers of goods and services. A restraint of trade that is ordinarily reasonable can be rendered unreasonable if it is accompanied by a Specific Intent to achieve the equivalent of a forbidden restraint. "

[GemCurrency]

I've not sure on what legitimate basis it could be challenged.

 

Ebay is a private company, which facilitates auctions. As such, they have the right to enact policies which protect the consumer and make the marketplace safer.

 

PMG and PCGS are both highly trusted names in the hobby. Thus, it stands to reason that ebay would select them as approved grading companies. If another company wants to enter their marketplace, ebay requires that they prove themselves, and criteria is set up to do that.

 

An analogy i'd give is let's say you manufacture cars. It would be fair to limit the companies who you deal with to make tires for the car to those companies who are trusted in tire making. If a new tire making company comes along it would be fair for you not to do business with them, unless they were able to prove themselves.

 

That's the nature of business and competition.

[Nutmeg Coin]

It looks like the minimum for their new rules is $2500 value, so if a note is listed under that or hits a higher amount, I don't know if they will enforce the rules then.

 

"Single notes listed in the Coins & Paper Money > Paper Money: US or Coins & Paper Money > Paper Money: World with a starting bid price, reserve price, or Buy It Now price of $2,500 or more must receive a numeric grade from an approved grading company, and the numeric grade must be included in the listing. This requirement doesn't apply to collections, lots, or sets listed within the Coins & Paper Money > Paper Money: US or Coins & Paper Money > Paper Money: World."

[GemCurrency]

It looks like the minimum for their new rules is $2500 value, so if a note is listed under that or hits a higher amount, I don't know if they will enforce the rules then.

 

"Single notes listed in the Coins & Paper Money > Paper Money: US or Coins & Paper Money > Paper Money: World with a starting bid price, reserve price, or Buy It Now price of $2,500 or more must receive a numeric grade from an approved grading company, and the numeric grade must be included in the listing. This requirement doesn't apply to collections, lots, or sets listed within the Coins & Paper Money > Paper Money: US or Coins & Paper Money > Paper Money: World."

 

In other words if less than $2500 and not PMG or PCGS they consider it as if you were selling a raw note. They consider notes not graded or not PMG or PCGS graded to be raw notes. If over $2500 must be PMG or PCGS graded.

 

Here is their policy regarding raw paper currency,

From Ebay website.

 

"Raw paper currency are items that haven't been graded by a currency grading company, or has been graded, but not by an approved grading company.

Listings for raw paper currency must follow these guidelines:

 

A numeric grade (such as 67, Choice Uncirculated 64, Extremely Fine 40, VF30) isn't included in the title, description, or item specifics of the listing.

 

No estimate of value (even if personal opinion) or reference to a price guide is included in the title or description.

 

The listing includes photos of the front and back of the currency being sold. Stock photos and images that are dark, out of focus, edited, or misleading aren't allowed.

 

Photos or scans of paper currency in holders from a non-approved grading company cannot show a grade. The grade must be completely obscured and unreadable.

 

The starting, reserve, or Buy It Now price for the paper currency is less than $2,500."

[Nutmeg Coin]

The shill sellers on ebay apparently still have nothing to fear. Start the auction low, get your buddies to bid it up to whatever level you want. If the sucker with the $$ does not pull the trigger, just cancel out the auction with the agreement of your cohorts.

 

"We are offering this mid-grade extremely attractive, PQ+++ rarity that is seldom offered this nice. You may have to wait years for another opportunity to snag such a gorgeous piece of numismatic history".

 

What they are really thinking: (How do I palm off this doctored, soaked, and repaired rag to the right suckers?? Will have to recycle the same scam methods until successful.)

[GemCurrency]

I'm sure people can always try to find ways to scam others on ebay.

 

Of course, shill bidding can happen in all auctions not just paper currency.

 

Ebay does have a policy against shill bidding and I honestly don't know how effective they are at detecting/stopping it.

 

Nevertheless, I think their new policies surrounding paper money does go a long way in making marketplace safer.

[Houston Investor]

No CGA or CGC? I remember when they were the only Currency Grading Companies. I still have the grading book for US Currency published by CGC.