mam98031 • Volunteer Community Member • Buyer/Seller since 1999
@north40sales wrote:the fee load is pretty much a push from what I am seeing. No appreciable savings noted. What is different is on the eBay side where they capture all the fees from the entire transaction now rather than having PayPal take their portion.
Yes very true.
On August 2nd PP is raising some of their fees. So if we compare costs against those changes, the MP fees will be lower. The change of the per transaction fee to 49 cents is like a 60 something percent increase on this fee. Others aren't that high of a percentage, but an increase nonethesame.
1: Buyer pays on eBay's site using whatever payment method they want.
1a Ebay pings the funding source to ensure that the payment is valid/ covered.
2: eBay sends payment details to Ayden
3: Ayden processes the payment like any merchant account.
3A: Ayden sends request for authorization to the buyers financial institution
3B: Buyers bank issues approval code to Ayden for the transaction amount.
3C: Ayden settles the authorization by invoice and receives funds from buyer's bank.
3D: Ayden takes a fee from this settled amount and sweeps the remaining balance from their account to eBay's account. Where did you get this from? I'm unware of anything released by Ebay or Aden that outlines their contract structured agreement. Not that this really matters to us sellers, but I don't think we know when, where or how Ebay pays Adyen for services rendered. This certainly is one option.
4: eBay receives funds from Ayden (not sure how long it takes for clearance to occur here).
1-2 days as can be seen on the details of most seller's MP details and as it stated in the policies describing MP.
5: once the funds are deposited in eBay's account, they can show it as "received buyer's payment" to the seller.
To my knowledge Ebay NEVER takes custody of the funds. Adyen implements the transfer to the seller's bank account via ACH.
6: "the float".....this is the period when eBay is in physical custody of the money. Its in their account, free and clear from Ayden....but not yet submitted for deposit to the seller's checking acccount via ACH transaction. eBay can chose to just let it sit in their account and do nothing or use that money for overnight CD's that almost every large business does to earn fractional interest.
Except for the fact that Ebay doesn't handle the actual money, Adyen does. And Ebay has repeatedly said they don't earn interest on held funds.
7: eBay pays the seller via their payout schedule and sends the money (less the eBay fees & the .30 transaction fee) to the seller's checking account via ACH transfer.
This process [likely done by Adyen not Ebay] takes 1-4 days depending on the destination bank. And this process takes place on the next available business day after the funds have cleared Pending and moved to Available for those on Daily Deposits and on the next available Tuesday for those on Weekly transfers.
8: The money shows as deposited in the sellers checking account and is part of their available balance at their bank.
At the moment of payment, I would think it is the Ebay system doing the pinging, but even if it is Adyen, it doesn't change anything. I make no claim to know the inter structure of the program.
I didn't say Adyen works for free. You may want to revisit my statement.
"You just mentioned above that it takes 1-2 days for Ayden to transfer the funds" No that isn't what I said. I said it takes 1-2 days to clear a pending payment, that is not the same thing as transferring funds to the seller.
" Ayden is a clearance facilitator and they deal with eBay...not the seller." You are absolutely correct and that is exactly what Ebay has said from the beginning. Sellers will have no contact directly with Adyen.
"Except for the fact that the ACH shows on statement as origin from eBay...not Ayden Processing Systems in the Netherlands. " Likely because that is the identification Adyen is using for these transfers. Ebay has repeatedly said this is a function of Adyen. I respect that you hold a different opinion.
There are many foreign companies that have a presence here in the US. Adyen is one of them. They don't move our money to the Netherlands and back in these short windows of the processing for Ebay. Adyen has a presence here in the US. I their main office is in California. And Adyen is licensed as a bank in the Netherlands and the USA. So they have no need to have the money leave the US for the process here on Ebay.
@north40sales wrote:so you are saying that Ayden handles every aspect of the payment processes from point of sale to sending funds to the sellers bank account?
It is my understanding that Adyen handles the actual and literal money.
At the point a buyer pays, money hasn't transferred yet. Their funding source is pinged to make sure it will cover whatever the purchase is. I can't tell you for sure if Ebay pings it or if Adyen does, but the funding source gets pinged.
@north40sales wrote:I find it unlikely that Ayden handles all the money transactions and eBay handles none of it.
Ayden is a payment processor. eBay sends them the request data (buyer account and total amount to process). Once Ayden collects funds from the buyer, they transfer it to the requestor, which is eBay.
eBay then "Manages the Payment process" with that money, covering the total fee load (payment for Ayden's services, payment to eBay for the Final Value Fee, transaction fee, and shipping fees if the seller uses the pending payouts to pay for shipping labels. eBay also withholds the taxes collected and remits them to the appropriate taxing entities.
Finally, eBay initiates an ACH transfer of the remainign balance to the seller.
If eBay does not earn interest on the funds while its in their custody, they are fiscally irresponsible for ignoring an obvious revenue stream.
Have a great evening
"Ayden collects funds from the buyer, they transfer it to the requestor, which is eBay. " Not a term I've seen in this process. But why would Ebay be requesting the transfer from Adyen? It should just be part of Adyens process that once the funds are Available in any given seller's MP account, it gets transferred to the seller's bank account on the next available business day for those on Daily Deposits and on the next available Tuesday for those on Weekly deposits. I don't see any reason why Ebay would get inserted into that process.
Ebay does NOT "manage the money", Ebay manages the data that we see in our Seller Hub.
Again, I have no idea what Ebay and Adyen's agreement is on fees, nor do I know what their payment process is on those fees. Anything I'd say is a guess, not a fact. So if you feel you have factual information, please post your source / link to where you got the information.
"Finally, eBay initiates an ACH transfer of the remainign balance to the seller. " Yes you have said this before, I didn't think that is how that transpires then nor do I now. Adyen handles the money. But either way, I don't know why it is so important to you or why you keep arguing these points. It has no net affect on how MP is affecting sellers.
"If eBay does not earn interest on the funds while its in their custody, they are fiscally irresponsible for ignoring an obvious revenue stream." You just need to do a little research. PP lost a lawsuit for earning interest on held funds while they were owned by Ebay. So it is highly unlikely Ebay, knowing they would lose if challenged in court would earn interest on held funds. Besides the fact that Ebay has repeatedly said they don't do this. I realize you keep insisting that they do, but that doesn't make it a fact. It just means it is what you believe and that is just fine. I've shared all I can with you on this subject. You are welcome to believe what you want.
"and then you keep going on and arguing these very points with anyone and everyone on the forum" The conversation has been with you, not "everyone on the forum".
"a payment processor that would handle disbursements to the multitude of different seller accounts and taxing entities." For more recent memory and likely most are familiar with, Paypal comes to mind. Paypal nor Adyen deals with the "taxing entities". The funds collected for sales tax are sent back to Ebay for their processing. Ebay explained this back when they had the sales tax being processed by Paypal as part of the whole payment from the buyer. No reason to believe it is any different with Adyen. The MFLs require the Marketplace to handle the sales tax, not their money processor.
Ebay has stated their position on the stuff you have brought up, whether you recognize that or not is up to you.
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