As anticipated, eBay has banned its sellers from requesting payment via the Google Checkout online payment service, reports AuctionBytes.com. eBay updated its Safe Payments policy this week, adding Google Checkout to the list of unapproved payment methods. eBay this week also renamed its "Safe Payments Policy" (a cached version from India) to "Accepted Payments Policy," apparently implying that Checkout is not unsafe - merely unacceptable.

eBay "clarified" the policy change in an announcement, saying, " Please note that eBay's evaluation relates only to whether a particular service is appropriate for the eBay marketplace. These payment methods may, in fact, be useful services for consumers in other contexts."

The eBay policy states that a payment service must have a "substantial historical track record of providing safe and reliable financial and/or banking related services." Google has said that its Google Checkout is not a beta product. "Google has a long history in billing and payments for AdWords and for premium services, such as Google Video," according to a Google spokesperson.

Meanwhile, Forbes reported this week that a recent report by investment bank Caris & Company suggests that Google Checkout, assuming it were accepted by eBay, might end up helping eBay's business by improving sentiment toward eBay shares.