eBay Managed Payments Explained
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Register for eBay managed payments
Transcribe of “eBay Managed Payments Explained”
Hi guys, Neil Waterhouse. This week’s video is an explanation about eBay managed payments. The pros and the cons. So let’s launch straight in. You may have received an email from eBay like this saying, you need to register for eBay managed payments before a certain date. If you’ve not received this email yet, you’ll almost certainly receive it sometime before the end of 2020. As eBay is making managed payments mandatory for all their base sellers throughout 2020.
What is eBay managed payments?
So what is eBay managed payments. And how is it different to what’s on offer on eBay now and why they’re doing this? Okay, so tiny bit of history. Prior to 2015, eBay owned PayPal then in 2015 eBay and PayPal was split into independent stand-alone businesses. After that split eBay joined forces with a Dutch payments processing company called Adyen. Now Adyen… And in this small business they’ve got around 1400 employees. And they also manage the payments for companies like Microsoft, Etsy, Cathay Pacific. So when you pay for a flight with, say Cathay Pacific et cetera, it’s Adyen that is processing your credit card on behalf of Cathay Pacific.
They process the credit card
So they process the credit card and then they put the money into Cathay Pacific’s banks. So eBay managed payments, it’s not new. It was first rolled out in 2018. And eBay accepted their first credit card payment on the 24th of September 2018. If you’re not already registered for eBay managed payments, then the only way buyers can pay you now is by using PayPal. When you enable eBay managed payments your buyers will also have the ability to pay with visa, MasterCard, debit cards, American Express, Google Pay, Afterpay and shortly gift cards. And yes, they can still also have the ability to pay via PayPal.
The big difference after you register for eBay managed payments
However the big difference after you register for eBay managed payments is the money from your buyer goes to eBay, not your PayPal account. And then eBay transfers the money to your bank account. Which normally takes around two business days. Bottom line is every payment is handled by eBay. And then eBay transfer your funds into your bank account daily or weekly. Depending on what you select. In the past with eBay and PayPal, when somebody purchases an item, the buyer is redirected to PayPal. Then the funds are transferred into the seller’s PayPal account. When you want your money from PayPal, you need to log into your PayPal account. And transfer the money to your bank account.
With eBay managed payments, all transactions are handled by eBay
With eBay managed payments, all transactions are handled by eBay. And then eBay transfers the money straight into your bank account. So with managed payments enabled you’ll no longer log into PayPal to see your transactions because every payment it’s handled by eBay. One good thing about this is you can’t get caught in a merry-go-round game of eBay tells you to call PayPal and PayPal tells you to call eBay. You know, it’s all under one roof. With eBay managed payments there’s only one place to call. Of course that’s eBay.
Makes life much easier for reporting
This also makes life much easier for reporting. You no longer need to pull reports from eBay for your fees. And pull reports from PayPal to see the PayPal fees and then combine them together. Everything is now under one roof. And you can pull monthly reports straight from eBay managed payments. Because eBay is handling all these payments. They’re also talking about adding EFT and wire transfer shortly as another payment method. So the next big thing is cost. And at the moment, it’s good news.
Managed payments eBay is bearing all the PayPal fees
If you joined managed payments eBay is bearing all the PayPal fees except the 30 cent per fee transaction. So if you sell an item for say a hundred dollars, there is no PayPal fee, only the final value fee plus 30 cents. Know though that unlike PayPal, with eBay managed payments you’re charged 30 cents per listing. So if you sell, say stamps, and one customer purchase 10 different stamps, you’ll be charged this 30 cents 10 times for that one transaction.
You’ll still pay the eBay final value fee
So you’ll still pay the eBay final value fee, plus 30 cents per listing. But you no longer pay the 2.6% PayPal fee or whatever PayPal fee that you’re on. And you also don’t pay any other merchant fee for visa, American Express, MasterCard, et cetera. Now as eBay says, a quote from eBay, “regardless of how buyers pay you won’t be charged “any third party payment processing fees.”
With managed payments eBay becomes a single source for fees
Also as eBay says, “most sellers will see overall savings.” With managed payments eBay becomes a single source for fees, reports, refunds, seller protection, support et cetera. You no longer need to go to PayPal, et cetera. And speaking of seller protection, managed payments now also offers seller protection. Time will tell though how good the seller protection is compared to PayPal. So far, we’ve not had to test this out but if you have I would love to hear about your experience, good or bad. If you haven’t already registered managed payments yet I’ll put a link on the screen and below to where you can register.
Need to wait till you get an email from eBay to register
However you do need to wait till you get an email from eBay to register. That’s it, I hope this video helped with explaining some of your questions about eBay managed payments. That’s all for this week. Please scroll down and leave me a comment below. And while you’re there make sure you hit the subscribe button for more no fluff, hints, tips and automation strategies to make money on eBay and Amazon without leaving the comfort of your own home. Until next week stay safe, list more sell more. This is Neil Waterhouse.
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Thank you for the video. I am just curious about what kind of document ebay required for register the managed payment. As I haven’t got the invitation yet.
Final value fees are now 7.2% and with managed payments 9.4%. So I would have thought we will be paying third party fees, ebay has just incorporated them into their final value fees.
And how do refunds work, sometimes we part refund buyers who have paid too much post etc on combined purchases. I assume ebay will now have access to our personal bank accounts for this to work.