In a method performed by a PoE system, a PSE is able to detect whether a PD is compatible for receiving power via four wire pairs in the standard Ethernet cable. The PSE provides a current limited voltage to a first and second pair of wires in the cable, during a detection phase, to detect a characteristic impedance of the PD. In the PSE, a first resistor is connected to a third wire pair and a second resistor is connected to a fourth wire pair. During the detection phase, the PSE detects the relative currents through the resistors. If the currents are the same, then the PSE knows the PD is able to receive power via the four wire pairs. The PSE then applies the full PoE voltage to the first and second wire pairs and connects the third and fourth wire pairs to a low voltage via a MOSFET.