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I could be wrong, but I believe there are some Eastern European countries that can use PayPal to buy things, but they can't receive money through PayPal (or could only hold a balance, and couldn't transfer the funds to a bank account/credit card... or something). So those people could essentially never cash out.
Again, could be wrong but I recall reading a thread on the EU boards talking about it.
Edited by Skyfire on 9/22/2011 7:33 AM PDT
The reason Blizzard chose PayPal is simple.
Ebay owns PayPal. Who better to help them implement a secure online auction house? Part of the deal may have been PayPal requesting exclusive rights to the transactions in Diablo and that's why they're the only one. (Blizzard won't do it, because becoming a bank is a whole ball of crap a developer like Blizzard doesn't want)
Of course, this is just my speculation :)
Edited by Skyfire on 9/22/2011 7:52 AM PDT
I believe all transactions in the Auction house are taken care of by Blizzard and PayPal only get involved if you choose to cash-out.
From what I've read before, PayPal may offer a microtransactions contract with Blizzard which means instead of the usual 2.9% + $.30 per transaction, it will be more like .5% + $.05 per transaction.
Considering you are unable to dump your collected eBalance in one transaction (except for the already discussed work around), this may be a plausible solution for smaller items that will sell for $1.00.
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