Effective July 1st of next year, eBay will no longer allow third party checkout transactions for customers. That means you will only be able to make purchases using eBay-owned PayPal. 

eBay claims that only about 10% of purchases made are done by third party options. In the same announcement, the online auction giant tried to throw a little oil on what will surely be turbulant waters as reactions ripple through the web. eBay says it will be upgrading its checkout system with better credit card integration, tax reporting and smoother shipping to places like Alaska and Hawaii. Yeah, yeah....

Speaking of turbulant waters, there's already been some brouhaha over eBay using this to throw Google Checkout out of its sandbox. Just a clarification; Google Checkout was never in the eBay sandbox to begin with.

It's long time until next July, we'll see what the FTC has to say about this between now and then.