Arrested funds, received from buyer. Legal?

[colimaga]

I have a personal account on eBay for 20 years, using it as buyer and occasionally as a seller. 

My PayPal account is linked with eBay. 

However, when an item was sold recently, the funds processed from buyer via PayPal, were arrested and held by eBay, demanding additional financial information from me, namely my bank information. 

Is this legal? 

Is there any way to get the money, not intended for ebay consumption (except for the fee) without releasing my bank info? 

Please, help. 

[rfmtm]

You are now in Managed Payments, your buyer's payment is in your new ebay account, not in your PayPal account as it use to be.  To get your money, ebay's new payment processor needs your bank account information, just like PayPal did, to transfer your funds to your bank.

[kensgiftshop]

@colimaga 

To be paid now, you have to sign up for Managed Payments, providing a checking account and the last 4 of your SSN.

If you don't sign up, they have no way to pay you.

[colimaga]

My PayPal account is still shown as "linked" with eBay account though. How is it possible for eBay to hold my money? to allow the transaction to take place, and then start demanding my bank info after receiving the money intended for me? what kind of policy is this? pirates of ebay

[rfmtm]

Your PayPal account is still linked for other uses, like buying postage or processing gift cards.  However, PayPal no longer processes payment from buyers, even though buyers can still use PayPal to pay, the actual payment process is now done by ebay's new payment processor Ayden.  So since your money is in your ebay account and not your PayPal account, they need to know where you want the payment sent for deposit.

[colimaga]

Ok. My question is: how is it legal? The item was allowed to be listed for sale. NO information about my bank account was required for the past 12 years since I have registered. What if one do not have a checking account? There should be other options to receive MY money, even if it's just a check in the mail. No company should be allowed to pocket your money and then to ask for "ransom". Have you ever seen the situation like this on any other platform? 

[*lady*madonna*]

Ebay is not holding your money as "ransom". It is YOUR money and Ebay wants to give it to you, so in order to do that,  you need to tell them where to deposit YOUR funds from your sales.

Other sites do the same thing when they change payment processors.

[rfmtm]

Over the previous year there were repeated notices sent out to invite sellers to sign up before the deadline.  Then a couple of final advanced notices to stop selling by a certain date, if you did not want participate. 

If your sale and payment was before that date, money still went to PayPal, after that date money goes to your Managed Payments account.  You might consider just opening a free bank account, just for use with ebay, if you like.