PayPal, the payment system utilized by the majority of Ebay merchants, has given themselves an interest-free bailout... Funded by their subscribers.
A new requirement of rolling reserves allows PayPal to hold an arbitrarily determined percentage of sales funds for 60 days, without payment of interest.
Following a change of the Terms of Agreement at Ebay earlier this year, most payment for goods purchased through Ebay are directed to PayPal (An Ebay owned company). PayPal has instituted a rolling reserve policy wherein they hold from 5-20% of the merchants sales for a period of 30 to 60 days. PayPal's formula for determining how much it will hold in reserve and for how long appears to have little to do with the merchant's good standing and business practices.
Since PayPal is neither a bank or a credit card processor, they appear to be immune from most regulation. The rolling reserve is, essentially, an interest-free loan to themselves gleaned from their participating merchants.
The new Ebay/PayPal regulations are having a negative effect on thousands of small businesses. It is, essentially, a monopoly created by Ebay's Terms of Agreement which limit competition from outside payment methods. The net result will further limit small business operating capital and many force the closure of some businesses.
Ironically, while PayPal's actions effect thousands of small merchants and involve, what most likely amounts to, millions of dollars, the matter is running under the radar of the media and the government
This is the prefect opportunity for the Obama administration to become involved and stand up for America's truly small businesses.
(More details on the rolling reserve can be found by an Internet search of "PayPal rolling reserves".)