Ebay's ''managed payments' program

[sandl-collectibles]

Paypal was able to have my buyer's auction payments in my bank account AND accessible within just a few minutes of their having paid Paypal. Ebay's new 'managed payment' program is unable to get my payments into my account and have them accessible to me in less than 5 days. Plus, I am now paying Ebay more in fees. So, how is this new Ebay payment policy in ANY WAY quicker, more cost effective, or efficient for the seller?

[downunder-61]

Paypal fronted the money to the seller before it was even cleared to them, so we all got happy and comfortable with that - now Adyen as a financial banking institution (PP was Not a bank) are bound by banking laws and can not do that, so we wait until funds are in our banks

As to fee's, the difference is so minimal to most sellers we barely notice (mine actually went down by about 0.5%)

[www.wildatheartrescueandsanctuary]

Hi,

It's not helpful to anyone buy Ebay, the longer they hold our money the more interest they get, having millions and millions of our dollars sitting around for 5 plus days brings in tons of money for Ebay that's why the change, they never do anything to make it better for sellers only better for Ebay.

[duffy4444]

   PayPal is history - you need to get over the "good ol' days" mindset of when PayPal fronted the money (a non-standard business payments processing practice).

   As long as you are an upstanding seller on Ebay with no problems, the money will be in your account in as little as 2-3 days (the standard procedure in business payments processing). Unless there are metrics problems with your account, the only time it takes more than that is over a weekend and/or a holiday, when deposits are generally not processed by your bank. Any business person/model can easily adjust their expectations to that.    

  You had to wait a week, two weeks, or a month or even more to be paid by your employer. You adjusted because you had no choice. Same here on Ebay with Adyen as the payment processor for Ebay and many, many other online sites including Etsy.

   Before questioning Ebay's payment policy, you need to research and educate yourself as to what is really the nuts and bolts of the new system. Successful sellers here have Accepted > Adjusted > Adapted  to the new payment system, and are continuing to make money.

   You are NOT paying more in fees than you were with PayPal. It's actually the same total amount, or slightly less. You're forgetting that PayPal's fees were on top of the ~10% fees Ebay imposed back then. And if you were up on the financial news, you would know that recently PayPal raised their fees substantially, to go into effect in I think August. Good riddance to the additional bureaucracy of PayPal!

   The best thing to do is chill out and accept and adapt to the new changes. The vast majority of successful sellers have.

Good Luck!

Cheers, Duffy

[downunder-61]

And to add to poster # 3 eBay does not collect interest on held funds, most pending funds don't even touch eBay, they go from through ACH to Adyen > and to your account.

Other held funds are held in a non interest bearing account.

[duffy4444]

  Your contention that Ebay holds onto the money just for more interest (the "float") is a bogus rumor, which is merely a common anti-corporate knee-jerk reaction that has gained traction with some disgruntled Ebay sellers and detractors. Ebay has stated that they do not hold onto the money to gain interest on it and screw sellers. The money is turned over to Adyen for processing into your bank. That takes a couple days., which is the standard in payments processing practice.

  Even if  Ebay had decided to hold onto the money for the interest float, that would be their privilege. It is their sandbox, and they make the rules. Our shoes are not nailed to the floor... sellers have the privilege of either accepting Ebay's policies, or walking away and finding other less-successful online venues to sell. 

Cheers, Duffy

[north40sales]

the rub is that with PayPal's fee increase...it kinda gives an open door for eBay to raise their processing fee as well and set is just below PayPal's new mark.  

[north40sales]

The payments to me from Managed Payments are ACH transfers titled from eBay, not from Adyen.   

I was under the understanding that Adyen was a payment processor...like a clearing bank.  eBay would send the transaction to Adyen for processing the funds from the Buyer's funding source to eBay.   Then eBay would manage the payment process from there once in receipt of the funds.  eBay would withhold the fees, taxes, and shipping cost if paid from MP pending funds and then disburse the remaining funds to the seller's account via Daily or Weekly ACH transfers from eBay. 

The interest question is a bit of a sticky wicket. 

eBay says that they do not earn interest on pending funds. 

However, it is not against any law or banking principle to earn interest on funds held by a business in a commercial interest bearing account. 

It is a common business practice for businesses to earn interest on funds that are in their custody in commercial interest bearing accounts and through overnight short term fractional interest CD's.

When eBay owned PayPal they had this issue come up as they were earning interest in funds pending disbursement that were sitting in checking accounts.  The Fed inspectors said it was not a violation of any kind and as long as the reporting was correct, had no issue with it.   

That said, if you owned a business and had tens of millions of dollars in funds that were in your custody for 1-3 days and there was no rule or law that prevented you from holding those funds in a commercial interest bearing account....you would be irresponsible if you did not take advantage of this additional revenue stream.  

There is also the funds that eBay has in custody for even longer periods of time.  The weekly payout sellers will fall into this category as well as the tax payments that eBay collects on their transactions that they will need to disburse to the various taxing entities.  That may be a monthly, quarterly, or annual payment depending on how the tax entities operate.    Why would eBay not park these funds into interest bearing accounts until the disbursement time arrives?

[duffy4444]

   With the current surge in inflation, you may well expect fees to rise sometime in the future, just as PayPal has done recently. That's a no-brainer. 

   If Ebay wishes to go thru that open door and raise its processing fees, which they have not yet done but may in the future, that is their privilege. It is still their sandbox, and they still make the rules. It is also still the privilege of sellers to accept it or move to another venue or quit selling altogether.

   This is called free online marketplace commerce... accept changes or be free to move on. That is still the bottom line regardless of people's fears and arguments against potential rising fees.

Cheers, Duffy

[north40sales]

Yep...their house, their rules.   

[dirk12955]

We continue to see sellers speaking to the time it takes to get their money.

I received 21 payments in June

                      21 payments in May

                      22 payments in April

That's an average of every   1.42 days more or less

Some banks do not credit your account immediately after they receive your funds.   (I have read)

[mam98031]

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@north40sales wrote:

the rub is that with PayPal's fee increase...it kinda gives an open door for eBay to raise their processing fee as well and set is just below PayPal's new mark.  

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Unlikely since they raised FVFs for everyone by .20% April First.  Ebay has never done fee increases very close together.  So if history serves, then it is extremely unlikely.  Certainly not impossible, but not likely.

[mam98031]

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@duffy4444 wrote:

   With the current surge in inflation, you may well expect fees to rise sometime in the future, just as PayPal has done recently. That's a no-brainer. 

   If Ebay wishes to go thru that open door and raise its processing fees, which they have not yet done but may in the future, that is their privilege. It is still their sandbox, and they still make the rules. It is also still the privilege of sellers to accept it or move to another venue or quit selling altogether.

   This is called free online marketplace commerce... accept changes or be free to move on. That is still the bottom line regardless of people's fears and arguments against potential rising fees.

Cheers, Duffy

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FYI the last increase to the money processing fees was August 1st 2020.  But keep in mind that MP has moved to a Simplified Fee format.  One fee for all plus the transaction fee.  So once everyone is in MP, any increases to fees would be to the Simplified Fee and not broken down to FVF or money processing fee.  As I stated earlier there was a FVF increase of .20% on April 1st of this year, but we still had a good mix of sellers in MP and PayPal.  We get closer each day to having all active sellers in MP.

[mam98031]

@sandl-collectibles 

The fees in MP have NOT increased overall fees. The following numbers represent those that do not have a store and the fee rate for most common categories [not all].

Fees BEFORE going into MP
10.20% FVF + 2.9% PP fees = 13.10% plus 30 cent per transaction fee.

In MP the fees are:
10.20% FVF + 2.35% money processing fee paid to MP = 12.55% plus a 30 cent per transaction fee.

Starting August 2nd, PayPal is raising their fees. There per transaction fee is going up to  .49 cent Per Transaction.  That is over a 60% increase.  Not all the other fees have such a big increase, but there are changes that will make MP less expensive to be in.

[sandl-collectibles]

Yes, but remember that ebay's FVF percentage also applies to any applicable sales taxes collected by Ebay AND to shipping costs pay by the buyer.....neither of which Ebay has anything at all to do with and that the seller doesn't make a penny from.