Hi SevnSins,
I'm not sure what is involved in the decision making process related to the approval of merchant accounts by eBay, but I have seen eBay return error messages when sellers try to submit listings to eBay with "other credit cards" selected as a payment method that indicate they need to fax the merchant account information to eBay before they will be able to post listings in that manner.
In order to get a definitive answer to this particular question, I recommend contacting eBay's customer support team through their help page: http://www.auctiva.com/help/requesthelp.aspx
-Mike