eBay has officially outlawed cash payments among its 100 million members. The auction site has begun deleting listings from sellers who offer to accept cash through postal mail, saying that these sellers tend to be involved in scams.

"The U.S. Postal Service tells us it's unsafe, and now eBay is telling everyone that it is unsafe," said Matt Halprin, eBay's global policy VP. "So if a seller solicits or encourages offers to accept cash, [they are] encouraging unsafe payment methods and we do remove that seller's listing."

eBay managers approved the policy in October, but the change wasn't widely publicized or enforced until this week. Recently, several longstanding PowerSellers who have traditionally accepted cash complained that eBay is trying to force them to accept PayPal. eBay purchased the payments company in 2002, and is aggressively promoting its use.

After a rash of fraud last year, eBay and other sites such as Amazon.com warned buyers against paying for expensive items with non-reversible bank wire transfers. In many cases the fraudulent sellers posed as U.S. residents, but were actually outside the U.S. and never shipped merchandise after collecting the payments. The wire-transfer scam was used frequently by crooks posing as sellers of high-definition televisions, which frequently cost more than $2,000.

More details and comments are at Steve Weber's blog for online booksellers

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Steve Weber is author of "The Home-Based Bookstore: Start Your Own Business Selling Used Books on Amazon, eBay or Your Own Web Site" (ISBN 0977240606). Got a question for Steve? Send to: steve_weber@yahoo.com