eBay managed payments

[gregr2]

I just got this offer from eBay to switch to managed payments (We are all going there eventually). One of the big things is once you accept this change, buyers can't use PayPal anymore (PayPal won't be activated in managed payments until summer 2019). So now folks can pay with a credit or debit card and funds are transferred daily to my checking account. Over the next 3 years they will be moving everyone over to the new system. I'm going to open a separate checking account solely for eBay so it doesn't mess with my personal account. It does advertise a slightly lower fee since there are not separate eBay and PayPal fees. Should I accept and start this now?

https://www.ebay.com/help/selling/ge...s-ebay?id=4795

[bnorth]

Without being able to accept PayPal I would pass. I would think it would cost sales at this time.

[cardsnstuff]

I received same email/offer about a month or two ago; I declined.

For me, Paypal is easier and more convenient for both buying and selling, and when paying for shipping too. I didn't want to exclusively use payments since most ebayers already have a paypal account and maybe are leery about adding another credit card. I didn't want to have to wait 1-3 days for my $ to transfer to my bank.

Good luck with your decision. I know eventually I'll have to switch but not now and I didn't want to limit my buyers on an already flooded marketplace.

[JustinD]

Originally Posted by cardsnstuff

For me, Paypal is easier and more convenient for both buying and selling, and when paying for shipping too. I didn't want to exclusively use payments since most ebayers already have a paypal account and maybe are leery about adding another credit card. I didn't want to have to wait 1-3 days for my $ to transfer to my bank.

Call me lazy, but I am an Ebay buyer with 4k feedback and in this boat. I have not bought from sellers not using PP simply because I don't feel like the minor extra annoyance. Sorry to those that think it silly, but I doubt I am alone.

[SetBuilder]

I have some personal experience with this. When I was in college around 2007 I had a side business of wholesaling bulk items to businesses like dollar stores. One time I sold a bulk lot of mp3 players that either got damaged in transit or arrived broken. The buyer complained to PP and back then they were pretty ruthless. They froze like $4,000 in my account and even after I sent them paperwork that I had refunded most of the funds to the buyer, they just sat on it for weeks and took almost the entire 180 days to lift the hold.

I was pissed at how unaccountable they were, so I decided to open an authorize.net merchant account. This was 2007-08, so you had to disable PP and enter your merchant account number and PIN into this hidden eBay page that I had to speak to like 3 people at eBay before someone there knew it even existed (apparently it wasn't that popular). Once the "migration" was complete, the PayPal button disappeared from my listings and the logos of all the major CC's like Visa and MC appeared in it's place. So far so good.

At the time I was selling a lot of iPhone cases and I remember that a good percentage of people were utterly confused that they couldn't check out with PP and would send me confused messages. The authorize.net account took them to a form where they had to enter their payment info. Even though it had an eBay logo at the top, it freaked people out, and I had a few cancelled orders as a result. Despite this, it worked fairly well. Most people didn't mind.

This was a decade ago. Today I would imagine that people are much more open about alternative payment methods and a switch like this would probably go a lot smoother.

[BuckiGuy]

Originally Posted by SetBuilder

This was a decade ago. Today I would imagine that people are much more open about alternative payment methods and a switch like this would probably go a lot smoother.

Hmm.. I think in today's world of fake eBay messages, scam PayPal emails/sites, and fraudulent banking web sites - all of which look so real - most people would be very worried if they went to pay for something in eBay and got taken to an unfamiliar site to enter credit card info. I know I would close my browser instantly and not look back to that buyer again. Just too much fraud and online theft out there. It's way worse than 10 years ago, and people are much smarter about the fraud attempts and go nowhere near things that seem odd or suspicious to them

[Leon]

Originally Posted by BuckiGuy

Hmm.. I think in today's world of fake eBay messages, scam PayPal emails/sites, and fraudulent banking web sites - all of which look so real - most people would be very worried if they went to pay for something in eBay and got taken to an unfamiliar site to enter credit card info. I know I would close my browser instantly and not look back to that buyer again. Just too much fraud and online theft out there. It's way worse than 10 years ago, and people are much smarter about the fraud attempts and go nowhere near things that seem odd or suspicious to them

Besides the fraud aspect I don't like that PP can lock up your money at their whim. No doubt ebay is doing it because of their split with PP. I like PP so we will see how this goes.

[savedfrommyspokes]

As a buyer, payments through my buying account are now direct from my CC to ebay...there is now no longer any record in paypal for these payments.

As a seller, I received the same offer. After reviewing it, the 2.7% ebay fee is obviously lower than the current 2.9% PP charges. Based on what I read in the offer, there are no transaction fees charged. For me, this will be the real savings. I accept a large number of smaller payments, so saving 30 cents per payment is huge. Due to this savings on transaction fee costs, for a full year with receiving the same number and amount of payments LY, going this route will save me 42%.

My questions involve around the reporting. It may have been in the fine print, but will ebay now report my earnings to the IRS and mail me a 1099-k? Will there be the same monthy earnings reports similar to what paypal provides?

[tbob]

I'm not a huge fan of PayPal but I do wish to share a recent occurrence. I purchased a supposed E96 Proof card on eBay. As soon as I received it, I knew it was a fake. To provide documentation of its "unauthenticity" I quickly sent it to SGC and it came back marked "NO." (No reason why-I called them and they said it was skinned but on pressing them they acknowledged it was not a proof). I immediately forwarded all this to eBay and they immediately said "sorry, not sorry" and refused the claim. I contacted PayPal and although it was a hassle, they sided with me and returned my money. eBay did nada, PayPal listened, provided a means of having my money returned after I sent the card back to the seller. I'm sticking with PayPal.
P.S. I see the seller still has several alleged E96 "Proofs" on eBay. Caveat emptor.

[Lorewalker]

Originally Posted by savedfrommyspokes

My questions involve around the reporting. It may have been in the fine print, but will ebay now report my earnings to the IRS and mail me a 1099-k? Will there be the same monthy earnings reports similar to what paypal provides?

I am sure an accountant can give you a better answer but all payment processing entities have to provide a 1099K at the end of the year. Not sure what the threshold is for one being generated. You can generate sales reports already on ebay's site.

[Lorewalker]

Originally Posted by Leon

Besides the fraud aspect I don't like that PP can lock up your money at their whim. No doubt ebay is doing it because of their split with PP. I like PP so we will see how this goes.

Actually Paypal just sent out a notice that they will no longer be tying up anyone's money until a matter is fully investigated and a resolution is made. I am sure in cases of clear fraud that might be different, which it should be.

I doubt eBay is going to be any more kind or fair in their treatment of sellers once they are fully in the driver's seat. Nothing worse than eBay being fully back in control of payments.