Paypal ebay fees

Paypal ebay fees DEFAULT

On its own: How eBay is running payments without PayPal

EBay is going it alone.

PayPal and eBay have been intertwined for decades, even before the companies were corporately joined. Thousands of eBay sellers sported PayPal T-shirts at a 2002 conference — a sight that helped force then-eBay-CEO Meg Whitman's hand in ongoing acquisition talks. That, and the overwhelming number of eBay auctions that featured PayPal as a preferred payment method. She bought PayPal the next month.

After 13 years in which PayPal was tightly integrated with eBay, it spun out in 2015, with an agreement that PayPal would keep handling payments on eBay for a five-year transition. With that time period winding down, eBay has had to build its payments capabilities up from scratch — and deal with an army of sellers who have grown used to using PayPal not just to collect money for sales but pay their eBay fees, print shipping labels and even stock up on supplies.

Undoing that relationship has largely fallen to Alyssa Cutright, who helped build it in the first place. She spent 12 years at PayPal before and after the eBay acquisition, working at Square and Plastiq before rejoining eBay in July 2016 to oversee payments, risk and billing. PayPal's post-split exclusivity deal expired in July 2020, and Cutright has been working to shift its 19 million sellers to its in-house service.

The end of the deal has freed eBay up to offer options like Apple Pay or Afterpay "buy now, pay later" installments. But it's also meant confusion for consumers and merchants who had grown used to the eBay-PayPal link. For eBay, payments isn't just about processing credit cards; it's about handling listing fees and shipping costs, payouts for merchants and the risk of fraud.

The spinoff agreement let eBay start testing its own payments in 2018. By the end of 2020, only 1 million sellers had moved over to eBay payments, though by the end of the year, 38% of the value of goods sold on eBay had payment processed in-house. The transition is complex, since sellers include big retailers like Adidas and Dyson as well as individuals clearing out their garage.

Half of eBay's U.S. sellers have now migrated to what it calls Managed Payments. "We are moving very quickly," Cutright said. "We expect to be done with the full migration by the end of this year."

Building from scratch

Even when eBay owned PayPal, sellers had to set up separate accounts. When a buyer clicked "buy," PayPal managed the whole experience.

"Every time a seller came to list and sell on eBay they also needed to go establish a relationship with PayPal," Cutright said.

That meant PayPal charged its own fees on top of eBay, ran its own customer service and made its own decisions about when to reject a transaction.

Under the new system, sellers just have an eBay account. To make this happen, eBay built its own checkout and payments process which uses Adyen on the back end. (eBay and PayPal agreed to keep PayPal as a payment option for consumers, but the proceeds now go to the merchant's bank account, not a PayPal account.)

The shift also meant eBay had to build its own risk system. Previously eBay managed risk for buyers and sellers on inventory, but it wasn't part of the yes-or-no decision on payments transactions — for example, judging if a payment might be made with a stolen credit card. Now eBay handles this.

Account takeovers are more of a security worry now that financial information is kept there.

"There's a lot of fraud in ecommerce," Cutright said. "A big part of transactional risk capabilities is keeping the site safe."

To build this system, eBay created a new team from the ground up. Cutright declined to say how big it is, but LinkedIn lists more than 400 eBay employees self-identifying as working in payments or risk.

When Cutright got to eBay in July 2016, she spent her first six months educating the executive team and board on the payments landscape and options and what other marketplaces do, and recommended a strategy. In January 2018, eBay announced it would have its own payments system, with Adyen as payments processor. The goals: lower cost, more simplicity, higher conversions. And of course, more revenue for eBay.

Rebuilding its payments system is a little like rebuilding an airplane in flight. eBay has buyers in 190 markets globally, which all need locally relevant forms of payment, Cutright said.

For buyers, they can now use other forms of payment such as Apple Pay, which PayPal doesn't support, as well as other options in different geographies, such as Afterpay in Australia or direct debit in Germany.

Fewer fees, but some headaches for sellers

PayPal charged most sellers a 2.9% payments fee, deducted from the sale, while eBay charged a 10.2% final value fee, invoiced monthly. Sellers had an option to have eBay fees automatically deducted from their PayPal accounts.

Under eBay's new system, it charges a 12.55% final value fee that's deducted from the sale for most categories. (Those who have an eBay Store pay 11.7%.)

Some sellers say they are paying more in fees for certain categories of items or in certain geographies because the final value fee now includes shipping and taxes. (Confusingly, eBay didn't include taxes in calculating its fee, while PayPal did.) "Stating 'most sellers' will see a savings with managed payments is false advertising in my opinion," one seller wrote on an eBay discussion board.

Others generally like the new fee structure. "My business is saving a considerable amount over what I used to pay when PayPal processed my payments," Don Heiden, an eBay seller, wrote in a review of the system. "And not just from the final value fees I pay, but also from the large increases of free listings eBay added for those in managed payments."

"Most of our sellers will actually see a savings with us managing payments internally," Cutright said. "But structurally it is a considerable change."

Some sellers have complained about the speed of getting paid under the new system. Previously sellers could access their funds immediately in their PayPal wallet — if, for example, they wanted to turn around and buy supplies or new inventory. Now eBay sends seller proceeds daily using ACH. That can mean funds don't clear on the weekends.

Cutright acknowledges that was a benefit of PayPal's stored-value wallet. However, now eBay sellers don't have to go to PayPal to move money from PayPal to their bank account, she said. "We're settling like everyone else settles," Cutright said. "We're at the mercy of the receiving bank and clearing."

The net promoter score of sellers who have moved to the new system is 10 points higher than those still on the old system, eBay said.

For eBay's bottom line, the change has an obvious benefit. It expects to see an "incremental $2 billion in revenue and $500 million in operating income annually in 2022," per its February earnings report. The company's "transaction take rate" has also increased to 9.8%, at least partly due to its new payments system.

Investors seem happy, with shares now trading above $63. Riding a wave of strong ecommerce demand during the pandemic, shares of the company have risen along with the rest of the tech sector over the past year. But PayPal remains the real success story of the 2015 split: The spinoff is worth nearly seven times as much as its former parent, underscoring how much of the value in ecommerce lies in payments.

There are other gains for eBay. Controlling its own payments also means higher payment authorization rates, because it doesn't have as high of a bar for risk as PayPal's wallet, Cutright said. That's because the marketplace has more information about its buyers and sellers.

That kind of control over payments is something eBay sought for decades, dating back to the days when buyers sent sellers checks and money orders. Before it decided to buy PayPal, eBay tried building its own in-house service with Wells Fargo called Billpoint. It never took off. Now Cutright has a chance to do it right.

Sours: https://www.protocol.com/fintech/ebay-managed-payments-alyssa-cutright

eBay replaces PayPal: what it means for buyers and sellers

Online marketplace eBay will now pay its sellers directly rather than through online payment giant PayPal under new rules which came into effect on 1 June, marking an end to a 19-year partnership. 

Buyers can still use PayPal to purchase items, but the selling process now takes place solely via eBay’s managed payments system from start to finish.

eBay says the new system is simpler, more convenient and gives buyers more payment options. But Which? has spoken to one eBay user who is ditching the marketplace, after experiencing delayed payments under the new arrangement.

Here, Which? looks at how the changes will affect buyers and sellers plus what protections eBay’s new system has.

What does the overhaul mean for eBay users?

eBay and PayPal separated in 2015 as eBay initiated plans to simplify the buying and selling experience for users.

Although its new terms officially came into effect on 1 June 2021, eBay UK started managing payments last year, becoming the third market to introduce its managed payments experience after the US and Germany.

eBay says it now has a single source for fees, customised reports, simplified protections, refunds, and dedicated support.

We have outlined the key changes for sellers and buyers below.

Sellers

  • Sellers will now be paid directly into their bank account and will have to manage their payments there instead of through PayPal.
  • eBay selling fees are now automatically deducted from earnings at the time of sale and regardless of how the buyer pays.
  • Seller payouts should now be consistently initiated Monday through Friday, within two business days of order confirmation.
  • Sellers will no longer have PayPal fees, meaning the only charge will be eBay’s flat rate of 12.8% of the total sale plus a fixed fee of 30p, for all sales under £2,500. The old system was 10% for eBay, plus PayPal’s fees, plus 30p.

Buyers

Under the new system, there are more options for buyers, who can now pay with credit and debit cards, Apple Pay, Google Pay, PayPal, and PayPal Credit, eBay says.

eBay and PayPal have agreed to keep PayPal as a payment option for customers until July 2023 when its agreement with eBay runs out.

Do you have to do anything?

eBay says users should have received an email invitation asking them to complete managed payments registration by a specific date.

The online marketplace started inviting both business and private sellers to join in July 2020. Many sellers had a deadline of 31 May to join the new system, although eBay told Which? not all have moved to its new checkout and payments process just yet.

eBay’s terms and conditions make using the new setup compulsory, so make sure you check your emails for your deadline to move to the new system, and update your account details so it can start managing your payments.

The rollout should complete by the end of 2021. If you have any concerns, you can contact eBay’s customer service team on 0345 355 3229.

What have eBay users said?

The changes haven’t been welcomed by some eBay users.

We spoke to one eBay seller who waited a week for money for an item she sold to be deposited into her account.

‘I have no wish to sell there again’

Ms S, told Which? she listed a couple of items on eBay which sold on 1 June, raising £120 via PayPal.

After the items sold she checked her PayPal but found there was no money in the account.

The buyers and PayPal confirmed the money had been paid. However, Ms S discovered eBay was holding it.

Unaware of eBay’s new overhaul, Ms S says she was told it would take three days for one of her payments to be processed. The second payment was held while she confirmed her bank account ‘for a second time’, she claims.

Ms S says eBay told her it would wait for positive feedback from the buyer (although Ms S says the buyer never leaves feedback) or a tracked delivery to supply them with the tracking number or it would wait 30 days before it released the payment.

She sent the item via a tracked special delivery service to avoid the 30-day wait, which also meant she incurred additional costs.

On 4 June the item was delivered but no money was deposited from eBay . Ms S claims that after two phone calls supplying the tracking number eBay released the payment on 8 June.

Ms S told Which?: ‘I have no wish to sell there again after the fiasco so I won’t complain directly.’ Ms S is now looking for another sale site to do her business with.

We asked Bay for a comment on this case, but have had no response at the time of publishing.

Which? has also seen complaints on Twitter suggesting the fees are actually higher under the new system.

Do the changes mean fewer protections?

Now that buyers can use other forms of payment on eBay directly such as a credit card or debit card it’s worth considering the protections on offer.

eBay told Which? that managed payments should not only make ecommerce simpler to sell and get paid, but also manage the entire sales process. It’s hoped that under eBay managed payments, it’s operations will run smoother with simplified fees, integrated reporting, streamlined support, and ultimately the ability to mitigate and lower seller risk.

It also noted it does not have direct access to personal bank accounts. Sellers will provide a direct debit mandate to eBay, which will need to be verified by the seller’s own bank. eBay must provide advance notice of amounts to be collected by direct debit, and protections apply to sellers such that they would be able to obtain a refund in the event of fraud or incorrect payments.

Purchases made with a credit card worth between £100 and £30,000 benefit from Section 75 protection which means you will get your money back if anything goes wrong with your order.

Debit cards and credit cards benefit from chargeback which can reverse a transaction, however, this protection is not enshrined in law like Section 75 is.

PayPal’s buyer protection policy promises to safeguard users against breaches of contract, including missing deliveries, or when items turn out to be fake, faulty, or not what was expected.

Last year we surveyed PayPal customers who have made a claim and found that 71% were satisfied with how their claim was resolved. However, we found some PayPal customers have found it difficult to get reimbursed when they ran into problems – particularly victims of fraud.

It’s less clear whether eBay’s own systems will be more or less secure than PayPal for sellers, but eBay told Which? it has ‘simplified protections’ for sellers.

PayPal holds a banking licence, similar to a high street bank but with some limitations as it was granted in Luxembourg, such as accounts not qualifying for Financial Services Compensation Scheme protection, which safeguards up to £85,000 of deposits per institution per person.

Now that eBay will pay sellers directly into their bank accounts this is likely to mean sellers will benefit from FSCS protection on offer from their bank via their personal accounts, as long as they don’t exceed the £85,000 limit.

The Which? Money Podcast

Share this page

Share on FacebookShare on TwitterShare by email

Sours: https://www.which.co.uk/news/2021/06/ebay-replaces-paypal-what-it-means-for-buyers-and-sellers/
  1. Naruto reacts to ships
  2. Synonyms for cave
  3. 2001 f150 ground locations
  4. Reptile breeding racks
  5. Class reunion questionnaire ideas

Ebay sellers threaten to boycott over decision to end PayPal and change fees to 12.8%

Ebay sellers have threatened to boycott the marketplace over its decision to end PayPal after almost two decades.

Under new rules that came into force for a number of sellers on May 31, monthly billing statements will no longer exist and sellers will have their fees automatically deducted straight after an item is sold.

Seller fees will also rise to 12.8% of the final amount including delivery, plus 30p in the UK.

The old system was 10% for eBay, plus PayPal's fees, plus 30p. The difference favours the new system to the tune of pennies for most transactions.

Sellers will also have to wait 48 hours before they can access their cash.

EBay's forum users have said they are reluctant to use the new system and give eBay direct debit access to their personal bank accounts.

After that point, the money would be transferred straight to their bank account – eliminating the need for PayPal.

PayPal was acquired by eBay in its early days in 2002, and the two firms have worked in partnership ever since. However, the new rules will put an end to this nineteen-year partnership with customers gradually being rolled onto the new system.

Now some sellers have threatened to stop using the service over the move.

EBay's forum users have said they are reluctant to use the new system and give eBay direct debit access to their personal bank accounts.

Many are concerned that without PayPal acting as an intermediary Ebay, which is seen as largely bias towards customers regarding disputes, will now exert too much control over their sales.

Some have raised concerns that refunds could be automatically issued to buyers if there are any disputes, leaving them vulnerable to the increasing number of fraudsters.

Are you comfortable giving eBay your bank details? Let us know in the comments below

Ebay says it adheres to the same rules as other direct debit schemes, meaning customers will have advanced notice of how much is being taken out and will receive refunds for any fraudulent or incorrect payments.

Others have questioned the new payment system, which will replace PayPal’s fees with new Ebay fees, though it says the majority of sellers will be better off under new rules.

Prior to the changes sellers were charged 10% of the final sales price by Ebay, a further fee by PayPal plus a standard rate of 30p.

Under the new system sellers will pay 12.8% to Ebay plus 30p, but will no longer pay any extra fees to PayPal.

Ebay bought PayPal in 2002 and until 2015, the payment giant’s service were closely tied to Ebay’s platform.

But the new terms, effective from 1 June, say the new "managed payments" system is compulsory, and the company has the power to limit or remove listings from sellers who refuse to use it.

The move also means that buyers will automatically have access to every payment option available - including credit and debit cards, Apple Pay, Google Pay, PayPal, and PayPal Credit.

The feature has been rolled out since about 2018, an eBay spokesperson said - with business sellers moving first. An estimated four million sellers are already using it.

The deadlines for all users are phased - so while many sellers are required to move to the new system from 1 June, others will receive a message from eBay in the coming weeks and months.

Sours: https://www.mirror.co.uk/money/ebay-sellers-threaten-boycott-over-24243541

Ebay sellers can no longer accept payments via PayPal leading many to threaten a boycott

Ebay sellers can no longer receive payments via PayPal leading many to threaten a boycott of the online marketplace.

Ebay has updated its terms of use, putting in place new changes which means sellers will now receive payments from Ebay directly into their bank accounts, rather than through PayPal.

The changes, which came into effect on June 1, are mandatory and sellers are not able to opt out of what Ebay calls the “managed payments system”.

This has proven controversial with Ebay’s seller community, seeing many take to seller forums to call for a boycott and threaten to stop using its platform.

Ebay says the move will make it easier for customers who will automatically have access to every payment option including credit and debit cards, Apple Pay, Google Pay, PayPal and PayPal Credit.

Many are concerned that without PayPal acting as an intermediary Ebay, which is seen as largely bias towards customers regarding disputes, will now exert too much control over their sales.

Some have raised concerns that refunds could be automatically issued to buyers if there are any disputes, leaving them vulnerable to the increasing number of fraudsters.

READ MORE:Ebay sellers will soon be forced to link bank accounts as PayPal divorce continues

Ebay says it adheres to the same rules as other direct debit schemes, meaning customers will have advanced notice of how much is being taken out and will receive refunds for any fraudulent or incorrect payments.

Others have questioned the new payment system, which will replace PayPal’s fees with new Ebay fees, though it says the majority of sellers will be better off under new rules.

Prior to the changes sellers were charged 10 per cent of the final sales price by Ebay, a further fee by PayPal plus a standard rate of 30p.

Under the new system sellers will pay 12.8 per cent to Ebay plus 30p, but will no longer pay any extra fees to PayPal.

Payments could also now take up to two days to go through, rather than on the same day as was commonplace with PayPal.

Ebay bought PayPal in 2002 and until 2015 the payment giant’s service were closely tied to Ebay’s platform.

However the two companies, which split six years ago, have been moving further apart and gradually unravelling their 13-year partnership.

Click here to sign up to Charged free daily email newsletter

Sours: https://www.chargedretail.co.uk/2021/06/03/ebay-sellers-can-no-longer-accept-payments-via-paypal-leading-many-to-threaten-a-boycott/

Fees paypal ebay

On eBay, private sellers can list for free. You will be charged 35p insertion fee for each listing after you use up your 1,000 free listings for the month (or more for those with eBay Shops).

Final value fee is charged once your item sells, and you'll be charged a percentage of the item's selling price. It is calculated on the total amount of the sale, postage and handling, and any other applicable fees. The final value fee is a variable percentage of the total amount of the sale that varies by category (for most categories, it is 12.55%), plus a fixed £0.30 per order.

The price of the listing upgrade fee depends on the feature that you are paying for and how much your listing is upgraded.

Depending on your payment method, PayPal or eBay’s Managed Payment system, you will be charged a fee for every payment transaction made. Paypal's cut is 2.9% and 30p per transaction at the moment, with eBay taking up to 10%, depending on the item. Under Managed Payment, eBay now charges 12.8% and 30p per transaction, which works out to a price that's slightly less overall.

Sours: https://osome.com/uk/ebay-fee-calculator/
How to save Money on eBay Fees? -- eBay selling fees explained with Paypal and Managed Payment --

Ebay will now pay its sellers directly, rather than through PayPal, under new changes.

The online auction house, which has over four million sellers registered globally, said it was a 'big step' towards creating a simpler marketplace.  

Ebay has increased the fees it charges to sellers from 10 per cent of the item's value to 12.8 per cent, but they will now avoid Paypal charges.  

Although sellers will now be paid by eBay, buyers can still use PayPal to purchase items. 

PayPal was acquired by eBay in 2002 for $1.5billion and the two companies have worked closely ever since before the two companies separated in 2015.

Payment: eBay will now pay its sellers directly, rather than through Paypal, under new changes

Payment: eBay will now pay its sellers directly, rather than through Paypal, under new changes

But eBay said the changes, which came into effect on 1 June, will make it simpler for sellers to get paid.

Before this, it said sellers had to juggle between two sets of accounts, reports, online tools, policies and customer service contacts.

The process is now on eBay end-to-end, meaning there is no need for a third-party PayPal account and no more PayPal payment processing fees.

Sellers will also get paid directly to their bank account, not their PayPal account, and will be able to access everything they need in one place.

There are now new options for buyers to pay on site as well, such as Google Pay and Apple Pay. 

However, eBay has increased its own fees slightly, with payments now standing at 12.8 per cent of the final selling amount including delivery, plus 30p in the UK. 

Previously, this was 10 per cent for eBay, plus PayPal's processing fees which were 2.9 per cent, plus 30p. 

The process is on eBay end-to-end, meaning there is no need for a third-party PayPal account

The process is on eBay end-to-end, meaning there is no need for a third-party PayPal account

What do sellers have to do?

As part of the changes, all eBay sellers will receive an email invitation asking them to complete managed payments registration by a specific date. 

The rollout is phased, so the deadline is not the same for all sellers.

Sellers should check their emails from eBay for their registration deadline, and update their account details in order to begin having eBay manage their payments. 

All sellers will have their payments managed by eBay by the end of 2021. 

What has the feedback been?  

Some sellers have threatened to abandon the service thanks to the changes. 

Certain users believe that if a dispute has been raised by a buyer and eBay takes their side, it will be able to remove money directly from the seller's account. 

Others have taken to social media to say the fees seem to be much higher for them since the change, and that it is taking them longer to have the funds released.

Annoyed: This eBay seller is frustrated after the changes mean he has to wait to get paid

Annoyed: This eBay seller is frustrated after the changes mean he has to wait to get paid

Another user they had to wait for their funds when it was previously done quickly with Paypal

Another user they had to wait for their funds when it was previously done quickly with Paypal

However, experts say the move will actually benefit sellers, rather than hinder them.  

Libby James, co-founder of payment processing advisor Merchant Advice Services, said: 'Although some sellers have threatened to stop using the service over the move, the changes being rolled out in June will benefit them.

'Firstly, PayPal is making its own fees slightly higher - so not using the service will save eBay sellers fees and the changes will positively impact buyers by ensuring there are more payment options available including Google Pay, Apple Pay and PayPal credit.

'Secondly, this will also reduce the time it takes for the payment to reach sellers, enabling funds to clear instantly before they dispatch sold items. 

'As a result, the new system creates a simpler and more convenient experience for both buyers and sellers. We can, therefore, expect a rise in buying activity and an increase in account subscriptions of eBay sellers.'

Some links in this article may be affiliate links. If you click on them we may earn a small commission. That helps us fund This Is Money, and keep it free to use. We do not write articles to promote products. We do not allow any commercial relationship to affect our editorial independence.

The comments below have not been moderated.

The views expressed in the contents above are those of our users and do not necessarily reflect the views of MailOnline.

We are no longer accepting comments on this article.

Sours: https://www.thisismoney.co.uk/money/bills/article-9647727/eBay-sellers-no-longer-use-Paypal-new-simplified-face-higher-fees.html

You will also like:

eBay and PayPal‘s almost two decades-long relationship has come to an end.

The e-commerce giant updated its terms of service on Monday to inform sellers that any collected funds will no longer be credited to their PayPal account and will instead be deposited into their bank account directly.

“Managed payments helps sellers streamline their business on eBay, and simplifies the end-to-end experience for both buyers and sellers,” the company wrote in an FAQ regarding the update. “[Managed payment sellers] will have everything [they] need to sell and get paid, with reports, fees, protections, and support all in one place.”

The updated managed payments come attached with a new processing fee — $0.30 USD, plus a certain percentage of the total amount of the sale. However, the company claims that the new value fees will normally remain lower than the approximate 13 percent that eBay and PayPal were previously taking from each sale.

There are several phases to the new payment program’s rollout. Some users have already been told to switch their PayPal credentials with their checking account information, while others will receive the request for change sometime later this year, eBay says.

Once PayPal and eBay separated into independent publicly traded companies in 2015, the plan was that the former brand would continue managing eBay’s payments for a five-year period. In 2018, the e-commerce platform introduced its beta rollout for the new eBay-owned payment managing system, and by the end of 2020, the company reported that roughly 340,000 users were already integrated into the new payment processor.

The e-commerce platform has recently sold some high-value collectibles on its site. This month, a 1993 Babe Ruth Goudey Card sold for $400,000 USD.

Read Full Article

Text By
Dylan Kelly

Share this article

Sours: https://hypebeast.com/2021/6/ebay-paypal-payments-end-partnership


4239 4240 4241 4242 4243