eBay Managed Payments Collecting 2.7% Of Sales Tax As Processing Fee?

[classic_luxe]

Correct me if I'm wrong or not understanding something but looking at eBay Managed Payments they state that they will be taking 2.7% of the sales tax as part their "payment processing fee", how does that work? Sounds extremely unfair but I guess we have to consider the source.

[dhbookds]

Same as paypal.........  it's a transaction fee.........and that includes all charges that go into the transaction, including sales tax........ 

If you borrow money to pay for something, you are charged on the total amount borrowed..........it doesn't exclude the sales tax you may pay on the article. 

[m60driver]

Payment processors have been including sales tax long before there was an Internet.  The issue should be the high fee of 2.7%.  That is only a tad lower the Paypal.  

[gracieallen01]

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@m60driver wrote:

Payment processors have been including sales tax long before there was an Internet.  The issue should be the high fee of 2.7%.  That is only a tad lower the Paypal.  

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It could probably be worse - doesn't ebay needs something, after paying Adyen?

[luckythewinner]

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@m60driver wrote:

The issue should be the high fee of 2.7%.  That is only a tad lower the Paypal.  

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Don't forget the 30 cent flat fee from PayPal.

On a $10 sale, PayPal takes 59 cents (5.9%).

On a $15 sale, PayPal takes 74 cents (4.93%).

On a $20 sale, PayPal takes 88 cents (4.4%).

On a $25 sale, PayPal takes $1.03 (4.12%).

If Ayden really doesn't have a flat fee, the Ayden fee on that $10 sale will be less than half of the PayPal fee.

[eunster1313]

[goodluckselling]

Processing a payment means they are processing the entire amount.  At the time of processing the payment all the processor sees is an amount, not a break down of (item, shipping taxes, etc).

 As a buyer everything you have every purchased with your credit card is for the entire amount which included local sales tax.  It might be that you only looked at using your credit card from a buyers perspective?

The sellers of what you bought has always paid processing fees for the entire amount.

Good Luck Selling!

[mam98031]

It is a GOOD savings for sellers.  A seller saves 30 cents on EVERY payment transaction [PP charges 30 cents] and you save .02% on the money you receive from buyers.  Over time this adds up to be a good amount of money.

For example:

50 Transactions x .30 Cents = $15.00

$500 worth of sales x .02% [2.9-2.7%] = $10.00

That is a total of $25.00 in savings.

BTW, as others have said, payment processors such as PayPal, Amazon etc.  They all charge their fees on the total amount of money received.  That includes shipping and sales tax.  It is normal in the industry.

[collectibles2019]

MANAGED PAYMENTS IS A NIGHTMARE FOR SELLERS!  WE HAVE BEEN STRIPPED OF ALL PROTECTION WE HAD WITH PAYPAL!  PLEASE READ! By removing paypal from the equation, we have also lost the protection of Paypal.  If you sold to a "verified" buyer, then you were protected....no matter what!  Here is what just happened to me.....I sold an item for $480 at auction last Oct 2019.  I sold it "as is" but of course eBay gives them 30 days to return if Item is "not as described" right?  OK, so in LATE JANUARY, four months after I sold the item, the buyer goes to HIS CREDIT CARD COMPANY/BANK and files a dispute for the $480 charge saying "the item was not as described".  The bank contacts ebay, ebay sends them the info/details regarding the sale, and the bank sides with their customer refunding him the $480 (sucking it back from ebay).  Then what does ebay do?? they charge that back to me!!!!!  They add to my seller account bill the $480 PLUS A $20 dispute fee!!  So now I owe ebay $500 and guess what?? the buyer gets to keep the item too!  And wait, it gets even better, I was shocked and had this decision reviewed by the ebay review board which came back as "sorry, you are **bleep** out of luck! You owe us $500".  So, I figure when the $500 charge comes through my credit card, I WILL DISPUTE IT! Right?  well I can't...because I continuously sell on eBay and my "managed payments account had over $500 in it from other sales AFTER this dispute....ebay siphoned their $500 from my sales money.  So, it will NEVER be a charge on my credit card for me to dispute.  And WAIT! I am not done!  They not only siphoned it from my other sales, they ALSO added it to my seller account bill so they are taking the $500 from me TWICE!!  I have a customer service agent working on that double charge as we speak, she says it's a known problem they are working on. ON a side note: check your seller account bill against your managed payments transactions. PAYPAL ABSORBED THESE DISPUTES AND HANDLED THIS ON OUR BEHALF, EBAY TOOK THAT AWAY FROM US AND ARE NOW THEIR OWN PAYMENT PROCESSOR BUT SINCE THEY ARE NOT A FINANCIAL INSTITUTION AS PAYPAL IS, THEY ARE NOT EQUIPED TO FIGHT THESE BATTLES ON OUR BEHALF AND INSTEAD PASS IT BACK ONTO US AS IF WE HAVE THE DEEPER POCKETS!  I have had 2 very long conversations with Managed payment reps at ebay and they both claim ebay as a "victim" in this too. PEOPLE! Ebay CHOSE to kick Paypal to the side and become their own payment processor!!  Us sellers are the ONLY VICTIMS!!   The buyer community is already figuring this out and taking advantage of it!!!  And since ebay is passing the buck onto the sellers and feeling no pain, they have NO REASON TO FIX THIS!!!  I am now looking into selling on FB Marketplace and saving the 10% Final value fee and the 2.5% credit card processing fee (that also goes to ebay)!!!  Facebook Marketplace is already creating a more "ebay like" environment and is free!  And since we no longer have Seller and CC payment dispute protection on ebay, WHY PAY FOR IT!!!  PLEASE SHARE WITH OTHER SELLERS!!