eBay's "new" payment system delays shipping and removes Paypal seller protection

[avison_productions2]

I will premise this statement with:

I've been an active seller on eBay since 2002

I'm at 98.9% positive reviews

I've had no problems with eBay until NOW

As you are probably already aware, eBay has now FORCED ALL SELLERS to switch to their new payment system. This eliminates Paypal as the payment provider and eliminates all Paypal protections for the seller. This was especially useful as there were several incidents where eBay would do nothing to help with a refund and I would call Paypal to reverse the charges.

This new system doesn't work! A buyer will purchase an item and pay for the item in Paypal. Instead of going straight to me so that I can purchase a shipping label and send off my package to the buyer the same day, now eBay holds onto the payment for 1-3 days and then sends it to your bank with another 1-5 days of processing. In the meantime, they demand you send out the package BEFORE you get any money! Last time I checked, I do not know of a single online business that ships your item to you BEFORE you pay them!

This new payment system causes a lot of problems as some buyers get mad at me because I can't ship their item the same day as promised. Other buyers are able to understand and then get frustrated by eBay and will look to use other sites from now on.

I should be able to still have Paypal as my payment provider as they will post the buyer's payment the same day and the funds are available to then purchase the shipping label. If my only option is this terrible payment system that is a last ditch effort by eBay's board of directors to squeeze every last cent out of this now sham of an operation, then I will be using Craigslist, Next Door, Amazon, Etsy, Bonanza, eBid, etc. etc. Instead of being innovative and fairly competing with all these other sites, eBay has decided to take on this new payment system, which will have long time sellers and buyers leave your platform.

[mtgraves7984]

Yes, many here are aware. I opted into Managed Payments during August, 2019... it's not a new payment system.

To address your  concern: you can change the manner in which you purchase your shipping labels (from PayPal to your 'Pending Payouts') by scrolling down to the bottom of the label page and changing the option. It will become your new default, but can be changed with each label, should you choose.

The main thing with eBay is to ship within your Handling Time. Good luck and welcome aboard.

[annadryl]

---

@avison_productions2 wrote:

Instead of being innovative and fairly competing with all these other sites, eBay has decided to take on this new payment system, which will have long time sellers and buyers leave your platform.

---

This is the same type of payment processor that all of those other sites use. It's the same as when you pay (or someone pays you) by check or debit card at any site or store. This isn't new. And you can pay for shipping labels with your pending funds.

You're just in shock because it's new to you. There are 10765 threads about this.

You'll be fine.

[deutsschland]

I total agree with you - it is called "GREED AND TOTAL CONTROL".

[dav.b]

Ebay acts as though we save the 3.4% from paypal but i read the fee page and fees increase from 10% to 12.55% + .30 per order.. 

[kensgiftshop]

@avison_productions2 

Don't know about the other sites you mentioned, but Etsy uses the same program.

Ebay does not hold the payment for 1-3 days, unless you're on weekly payouts.

If your not going to use the pending funds to pay for shipping, you need to extend your handling time.

[avison_productions2]

"Ebay does not hold the payment for 1-3 days, unless you're on weekly payouts."

-Wrong. I have bank statements, screen shots, and eBay account statements that prove otherwise. I sold 3 items and all buyers paid for their items on 4/19. eBay did not release the funds to me until 4/22. I am on DAILY payouts. They sent the payment to my bank on 4/22 and the funds did not appear in my bank until 4/27. In the meantime, I had to pay for all the shipping and it came out of my Paypal.

"If your not going to use the pending funds to pay for shipping, you need to extend your handling time."

Minor correction...It is "you're" as in you are and not "your". Anyway...I CAN'T use pending funds to pay for shipping! The money to pay for shipping comes straight out of my Paypal account the same day I pay for it! I had to wait EIGHT DAYS for the money to show up in my account to reimburse me.

[buyselljack2016]

My 4-22 payout would be in my CU checking on 4-23. Part of your issue appears to be with your financial institution.

[avison_productions2]

Sorry, but you're wrong.

Craigslist and NextDoor do not hold onto any of your money. I receive either cash, Venmo, or Paypal at the exact second I sell something. I even ship items to buyers on NextDoor and Craigslist and I get all my money up front BEFORE I pay for shipping.

eBay prior to 2021 would utilize PayPal. The buyer would pay for their item, the money would be in my Paypal account the SAME DAY! I would be able to then use part of the funds to pay for shipping and then transferred the rest to my bank account that would be posted to my bank account the same day or at least within 24 hours.

Last week on eBay with their "new" payment system, this is how it actually went down:

I sold 3 items and all buyers paid for their items on 4/19. eBay did not release the funds to me until 4/22. I am on DAILY payouts. They sent the payment to my bank on 4/22 and the funds did not appear in my bank until 4/27. In the meantime, I had to pay for all the shipping and it came out of my Paypal. There was NO OPTION to use pending funds to pay for shipping.

eBay has simply instituted this policy solely out of greed. It places the shipping cost risk on the seller, it allows eBay to hold onto your money, and eBay makes interest off of it while it is in "processing". It also slows down the handling and shipping process as I now have to add 5 days handling time while I wait for the money to show up in my account so I can pay for shipping.

I will be fine as you said.

I already switched to NextDoor and have sold 8 items that were just stuck on eBay including a car radio, clothes, electronics, and a few tools. All 8 items sold for asking price, there were no fees, I received all payments via Venmo or Paypal and had them in my bank account within 24 hours. So yeah, I'm fine. I was just trying to warn other sellers or new people to eBay so that they don't get bamboozled.

I was recently in contact with a law firm here in Colorado that is starting up a class action lawsuit as the fees and delays violate a few of our commerce laws. I know I won't see anything of significant value from that, but it will cost eBay millions to settle. Will they change? Probably not. But I can prevent that one guy from signing on and getting raped in the bootyhole by greed. No Preparation H needed!

[avison_productions2]

Thank you for the info on how to switch to "pending payouts" to pay for shipping. I tried scrolling down to find the option, but I can't seem to find it when I use the app or I am online. I'll try again the next time I have a sale, but I recently switched to NextDoor and Craigslist and haven't been selling on eBay.

However, that doesn't fix my problem of eBay holding my money for 3-5 days.

Last week on eBay with their "new" payment system, this is how it actually went down:

I sold 3 items and all buyers paid for their items on 4/19. eBay did not release the funds to me until 4/22. I am on DAILY payouts. They sent the payment to my bank on 4/22 and the funds did not appear in my bank until 4/27. In the meantime, I had to pay for all the shipping and it came out of my Paypal. There was NO OPTION to use pending funds to pay for shipping, at least one that I could find...

[chapeau-noir]

---

@avison_productions2 wrote:

"Ebay does not hold the payment for 1-3 days, unless you're on weekly payouts."

-Wrong. I have bank statements, screen shots, and eBay account statements that prove otherwise. I sold 3 items and all buyers paid for their items on 4/19. eBay did not release the funds to me until 4/22. I am on DAILY payouts. They sent the payment to my bank on 4/22 and the funds did not appear in my bank until 4/27. In the meantime, I had to pay for all the shipping and it came out of my Paypal.

"If your not going to use the pending funds to pay for shipping, you need to extend your handling time."

Minor correction...It is "you're" as in you are and not "your". Anyway...I CAN'T use pending funds to pay for shipping! The money to pay for shipping comes straight out of my Paypal account the same day I pay for it! I had to wait EIGHT DAYS for the money to show up in my account to reimburse me.

---

As long as we're picking at grammar - a minor correction - It's "I will preface this statement', not 'I will premise this statement'.

And yeah, this is about the thousandth post about this, if you read the forums at all.  It's fine to not like the payment system and go elsewhere.  Good luck in your future endeavours.

[powell-memorabilia]

@avison_productions2 

The problem is your bank.  eBay sent my payment yesterday, and the funds are available in my checking account already.  Every payout is the same - available next day, unless your bank is “holding” your money.  

[darkfae2015]

incorrect i am on daily payouts, and there ARE times that they delay the payout due to "processing" . And meanwhile you end up using what is pending for shipping, it is not uncommon for me to see a "payout" of only a couple of bucks or the worst was .86..The daily payout most times only pays out a couple of times a week. sometimes it is 3 but never daily..

[darkfae2015]

no it isn't once ebay releases the money i have it the next day.. but its like this they only release it a couple of times a week..usually on a tuesday sometimes thursday. or friday.. but not both

[artemisphoibe]

I got payed on Saturday and the earliest I get my payment is Tuesday. So yes, it takes that long. I confirm it.