We report on the search for the rare decay η→π0e+e− which is of interest to study C violation in the electromagnetic interaction which would indicate contributions from physics beyond the Standard Model, since the allowed decay via a two-photon intermediate state is strongly suppressed. The experiment has been performed using the WASA-at-COSY installation, located at the COSY accelerator of the Forschungszentrum Jülich, Germany. In total 3×107 events of the reaction pd→3Heη have been recorded at an excess energy of Q=59.8MeV. Based on this data set the C parity violating decay η→π0γ⁎→π0e+e− via a single-photon intermediate state has been searched for, resulting in new upper limits of Γ(η→π0e+e−)/Γ(η→π+π−π0)<3.28×10−5 and Γ(η→π0e+e−)/Γ(η→all)<7.5×10−6 (CL=90%), respectively.