Originally Posted by eBay

http://pages.ebay.com/sell/August2008Update/OtherFAQ/#3

What's changing with payments on eBay?
Beginning in late October 2008, checks and money orders will no longer be allowed as payment methods on eBay. All items appearing on eBay.com must be paid for using either:
PayPal (funded by PayPal account balance, credit card, debit card, bank account, PayPal Pay Later, PayPal Buyer Credit or eBay gift certificate)
Credit or debit card payment to a seller (through a seller's Internet merchant account)
ProPay
Payment upon pickup
In January 2009, all of the approved electronic payment methods will be integrated into eBay checkout. For example, if a seller offers credit or debit card as a payment option, buyers will be able to directly enter their credit card information securely in eBay checkout and their payment will be directly routed to the seller's Internet merchant account.

We are also working with other electronic payment providers currently included in our Accepted Payments Policy to integrate their services into eBay checkout in 2009.