Internet auction site eBay and the State and City of New York have set up a charity auction to raise $100m in 100 days for victims of the US terrorist attacks.

Through a separate 'Auction for America' category on the site, eBay sellers can list items that are earmarked for the September 11th Fund, which has been established by the United Way of New York City and the New York Community Trust.

Worldwide users can go to the eBay site or visit http://pages.ebay.com/auctionforamerica to make a cash donation.

eBay spokesman Kevin Pursglove said the charity auction site was launched after New York Governor George Pataki and New York Mayor Rudy Giuliani asked eBay for help.

Governor Pataki said in a statement: "eBay has stepped up in an unprecedented way, providing yet another example of how New Yorkers and people throughout the world are coming together to support the victims of this horrible attack."

Pursglove said eBay had the site up and running in two days. "We are very pleased. eBay users have been fantastic in their response."

By Tuesday, more than 12,000 auctions had been listed as part of the Auction for America.

Items will be highlighted throughout the eBay marketplace and once a sale is made, all proceeds from the transaction will be contributed directly to the charity selected by the seller.

All Auction for America transactions will be processed through eBay's online Billpoint credit card payments service, and eBay and its partners, Visa USA, MasterCard International, Wells Fargo Bank and Discover Financial Services, will waive all customary fees.

The eBay Foundation will contribute the first $1m dollars.

But not everyone is happy about eBay's efforts. Sellers who use the auction site for their livelihood are complaining that they are being put at a disadvantage.