What happens if your bank declines a withdrawal to ebay?

[drnusbaum]

I'm a returning seller, but going to use Managed Payments for first time.  I've already set it up with a new separate bank account.

My understanding is that Ebay will automatically withdrawal money from your linked checking account for returns, refunds, chargebacks, etc ?  (which seems terrible but I guess we have to live with it.)

My new online neobank claims that they simply do not allow overdrafts, they will decline anything with insufficient funds.  Assuming that is tru, what will Ebay do when a customer demands a refund 30+ days later and I happen to not have the money in my checking account before I can see/deal with it, so the withdrawal fails?

I understand this should not be common, and we should keep enough money in the account to cover returns anyway.  But I would really like to know about any potential problems in advance (spending a lot of time reading about MP complaints/issues already so I'm familiar).  Thanks!!!

[monica-sells]

this is pure speculation on my part based on events I have had

IF ebay is going to debit/charge me for a service (store fee, return, etc...), they have always advised me 1-2 days ahead of time....that would technically give me time to either

a) pay it myself or

b) make sure the funds are available in my account

Just like with Paypal, I also have a credit card backup funding source to cover my MP account. Any unfunded amount should advance to this method......

So, I suspect that if there are insufficient funds with no "warning" ahead of time, or no "backup" funding source, you would get an opportunity to "make it right" before any other collection methods are

deployed.....

(remember when PP was the method, they could debit your account and your PP credit card had to fund it if there was no cash available in your PP account)

[kensgiftshop]

@drnusbaum 

If they can't get the funds to cover a refund from your funding source, they'll hold your funds until it's paid back.

It's good to keep a little in there to cover any refunds if needed.

Remember, buyers can also file a claim through Pay Pal and their credit card , so the funds are ot really safe to spend for 6 months or more.

[1tuna]

all of the sellers in MP are subject to the reimbursement clause

that means ebay can go after the money from your card or the checking account or other ways

@drnusbaum