Ebay’s New Payment Routine

[golfinbrad]

16 minutes ago, DFW Snowman said:

eBay (and PayPal) calculate their fee based on total sales price (sales tax included), not just the item price + shipping.  So the sales tax would indeed have an impact on the final payout to the seller.  If you sell to somebody in Oregon where there is no sales tax charged, you will get more than if you sell to somebody in TX where the sales tax is 8.25%.  

Below is from eBay's website and the link.  Sale tax is not included in their fees.'

 

Final value fees

We charge a final value fee when your item sells.

This fee is calculated as a percentage of the total amount of the sale. The total amount of the sale is the amount the buyer pays, including any shipping and handling charges. Sales tax isn't included in the calculation.

 

https://www.ebay.com/help/selling/fees-credits-invoices/selling-fees?id=4364

[DFW Snowman]

4 minutes ago, golfinbrad said:

Below is from eBay's website and the link.  Sale tax is not included in their fees.'

 

Final value fees

We charge a final value fee when your item sells.

This fee is calculated as a percentage of the total amount of the sale. The total amount of the sale is the amount the buyer pays, including any shipping and handling charges. Sales tax isn't included in the calculation.

 

https://www.ebay.com/help/selling/fees-credits-invoices/selling-fees?id=4364

 

At the top of that page is this disclaimer:

 

The fees detailed on this page apply to sellers whose account is not activated for eBay managed payments. If your account is activated for managed payments, please refer to our Selling fees for managed payments sellers article for the fees that apply to your account.

 

If you click through to the link for selling fees on managed payments, here is what you will see:

 

The total amount of the sale is the entire amount the buyer pays, including any handling charges, the shipping service the buyer selects, sales tax, and any other applicable fees. So if you are using managed payments, that fee does include sales tax, just as it did for PayPal.

 

Edited December 8, 2020 by DFW Snowman

[golfinbrad]

Ok, so there is an increase in the fees sellers pay under the new structure vs the old.  That was the point I was making.

[brew4eagle]

6 minutes ago, golfinbrad said:

Below is from eBay's website and the link.  Sale tax is not included in their fees.'

 

Final value fees

We charge a final value fee when your item sells.

This fee is calculated as a percentage of the total amount of the sale. The total amount of the sale is the amount the buyer pays, including any shipping and handling charges. Sales tax isn't included in the calculation.

 

https://www.ebay.com/help/selling/fees-credits-invoices/selling-fees?id=4364

They absolutely take 2.9% of the total transaction including taxes and shipping.  Go check any of your paypal transactions and confirm it for yourself.

[brew4eagle]

5 minutes ago, golfinbrad said:

Ok, so there is an increase in the fees sellers pay under the new structure vs the old.  That was the point I was making.

Wrong again, new structure should work out the same or slightly lower, just depends.  Based on the detailed fees pages, I don't see a scenario where fees would be higher under new structure (edit- referring to golf club sales only, I don't deal with other types of items)

Edited December 8, 2020 by brew4eagle

[golfinbrad]

Again all I was saying is sellers are incurring more fees under the new system versus the old.  They didn't add commission on the sales tax and now they do, so less to the seller.

[brew4eagle]

1 minute ago, golfinbrad said:

Again all I was saying is sellers are incurring more fees under the new system versus the old.  They didn't add commission on the sales tax and now they do, so less to the seller.

PayPal has taken a cut of the sales tax for a long time, that's the point you may be missing.  I think that you think you've been paying less fees in the past then you actually were.  Need to compare apples to apples...

[golffeen007]

FYI ,  it isn’t 2021 yet and eBay has just suspended my account since I’ve not completed the new payment registration info. 

[brew4eagle]

Just now, golffeen007 said:

FYI ,  it isn’t 2021 yet and eBay has just suspended my account since I’ve not completed the new payment registration info. 

Did they send you any notices to change over that you missed or didn't follow up on?  I haven't received any word from them about changes yet.

[VNutz]

6 minutes ago, golffeen007 said:

FYI ,  it isn’t 2021 yet and eBay has just suspended my account since I’ve not completed the new payment registration info. 

What?? That's pretty ridiculous. In one step they upset their customer and cut off their own revenue stream, well done clowns.

 

I keep getting notifications every few days, trying to hold out as long as I can.

[golffeen007]

Just the normal emails of the changes coming in 2021. My plan was to not complete until I had to or this happened. I began the registration weeks back but didn’t complete It, so they had some of my information saved and maybe that prompted It. No clue though. I wouldn’t have received any different alerts than any other member that hasn’t completed , that would cause it to lock my account. 

[golffeen007]

[golffeen007]

12 minutes ago, VNutz said:

What?? That's pretty ridiculous. In one step they upset their customer and cut off their own revenue stream, well done clowns.

 

I keep getting notifications every few days, trying to hold out as long as I can.

I have over 1,400 transactions at 100% feedback , mostly as a seller , but this new whole payment thing and freezing my account puts a bad taste in my mouth. I know they're are ways around having a holding tank for your money , but not getting paid for something you sale until they deem appropriate is ABSOLUTE GARBAGE! Opens up a big ole can of worms.  How does any other business operate this way that deals with consumer goods? They don't. Next time I get groceries , I'll tell the lady at Publix to just go ahead and pack up my groceries and put them in the buggy, I'll send the payment sometime next week after I eat half of them. 

[Bad9]

I'm not a big Ebay seller(1-2 items a year) but this new system virtually guarantees I won't list on there anymore.

[nsxguy]

I haven't been following this very much.

 

Is it a requirement of all sellers to go to the "managed sellers accounts" or can they stay on as a "normal"(?) seller ?

 

I sold a number of putters in Sept. and just sold one 2 days ago. Buyer paid via Paypal and my money was there.

 

I haven't seen any notices about any requirements to switch/register/whatever. 

[Bigjim1022]

1 hour ago, nsxguy said:

I haven't been following this very much.

 

Is it a requirement of all sellers to go to the "managed sellers accounts" or can they stay on as a "normal"(?) seller ?

 

I sold a number of putters in Sept. and just sold one 2 days ago. Buyer paid via Paypal and my money was there.

 

I haven't seen any notices about any requirements to switch/register/whatever. 

Yup managed payments or no selling on eBay.  You can still pay as a buyer through PayPal still but on the sellers end everything runs through eBays new system. 
 

As a side note, sold my first item in this new system Monday.  Shipped Tuesday morning and had funds in my account Thursday.  Not nearly as fast as PayPal and fess were basically the same.  Sold the shaft for $95 + 12.99 for shipping.  After all was said and done I ended up with $82.58.  

[brew4eagle]

Just completed my 1st transaction as a seller under the new system.  I prefer the old way, but the new way worked just fine and based on my calcs the fees went up by an insignificant amount ($0.40 on a $195 sale).  I'll keep posting things on BST and then moving them over to ebay if they don't sell.

[tomuch23]

Took 6 days including the weekend to get the money in my checking account. Guy received the package on the other side of the country before I had access to the money lol. Direct payment to PayPal was nice (my own golf $ to play around with) and easy. I could just open a separate account for getting paid but it isn't worth it in my case. Unfortunately they got us by the ba*ls like most big money/tech companies.  There isn't anything anyone can do about it anymore especially in the foreseeable future. 

[ckay]

I liked payments going into paypal because it kept golf related purchases and sales separated. 

[brew4eagle]

42 minutes ago, ckay said:

I liked payments going into paypal because it kept golf related purchases and sales separated. 

Agreed, but now that it's going to my money market account I can sit back and watch the 0.5% interest accumulate.  I'll earn a bag of naked lady tees in no time.

[Rubenc87]

Too complex. I've only sold a handful of items on Ebay 

[chocolate_rehab]

One benefit of the new system which I haven't seen discussed here: buyers who request to cancel orders.

 

Under Paypal's new terms, their fee is not cancellable/refundable when you cancel a sale, so you must eat it or ask the buyer to cover it (good luck there). Here's an example I experienced:

 

I sold two clubs for $299 buy it now, free shipping. Buyer pays via paypal. I now have $285.xx in my Paypal account after fees. Minutes later, buyer sends a message saying he didn't read the listing and bought the wrong flex, and could I cancel.

 

Now, if I cancel the sale through eBay (which immediately requests that I do so), they take an e-check for the full $299 from my attached bank account to refund the buyer. So I'm out the $14 for the cancelled sale, as I only have $285 from the sale. Tell the buyer to pound rocks and you risk them filing a claim and keeping the merchandise anyway, not worth it.

 

Managed payments eliminates that crappy loophole which has happened to me twice in the last few months. I was lucky enough one time to get the buyer to cover the fee, the other time I ate it.

[RH82]

It was a little difficult to wrap my head around at first but its really not all that bad. You get used to it pretty quick.

[bladehunter]

I’d be cautious of this. 
 

if they can deposit directly to your bank.  I guarantee you they can also pull funds directly from your bank if a buyer files a claim , and without notice.   
 

this is how it works with a merchant credit card account. If eBay is essentially now being your merchant terminal, this is how it will work.  

[LeftyMatt24]

41 minutes ago, bladehunter said:

I’d be cautious of this. 
 

if they can deposit directly to your bank.  I guarantee you they can also pull funds directly from your bank if a buyer files a claim , and without notice.   
 

this is how it works with a merchant credit card account. If eBay is essentially now being your merchant terminal, this is how it will work.  

Good point. Begs the question if opening an account separate with like ally or something to keep with eBay so it’s separate. Might look into this. 

[bladehunter]

1 minute ago, LeftyMatt24 said:

Good point. Begs the question if opening an account separate with like ally or something to keep with eBay so it’s separate. Might look into this. 

I would.  When I had a merchant account with CC companies I learned the hard way to have a separate account , one that I did no other transactions in , and that I kept no real balance in.  Transfer out as soon as a deposit hits , and  check it daily or more often for chargebacks.  Which would put the account negative.  Most banks if you transfer in and cover the negative before 10 pm or so there’s no fee.   But that’s the worst risk. The overdraft fee. 
 

the alternative is that you do business out of or write checks out of the same account they can grab money back from.   You wrote $10k worth of payroll checks and then a chargeback comes and half those checks bounce.  Had that happen once.  Never again.  From that day on I have a deposit account , and checking account that has zero attachments.  Money doesn’t rest in the deposit account.  Only in the one that can’t be accessed.  
 

oh and another pro tip.  Never ever ever choose your banks merchant service account if you’re accepting credit cards.   They have carte Blanche to access any of your accounts.  So you can’t keep it safe from fees or chargebacks etc.  always use a competitive bank.  They can’t or won’t allow access to anything you don’t sign up for specifically. In other words the fine print doesn’t allow them to go into all of your accounts. Just the specified deposit account.  

[LeftyMatt24]

29 minutes ago, bladehunter said:

I would.  When I had a merchant account with CC companies I learned the hard way to have a separate account , one that I did no other transactions in , and that I kept no real balance in.  Transfer out as soon as a deposit hits , and  check it daily or more often for chargebacks.  Which would put the account negative.  Most banks if you transfer in and cover the negative before 10 pm or so there’s no fee.   But that’s the worst risk. The overdraft fee. 
 

the alternative is that you do business out of or write checks out of the same account they can grab money back from.   You wrote $10k worth of payroll checks and then a chargeback comes and half those checks bounce.  Had that happen once.  Never again.  From that day on I have a deposit account , and checking account that has zero attachments.  Money doesn’t rest in the deposit account.  Only in the one that can’t be accessed.  
 

oh and another pro tip.  Never ever ever choose your banks merchant service account if you’re accepting credit cards.   They have carte Blanche to access any of your accounts.  So you can’t keep it safe from fees or chargebacks etc.  always use a competitive bank.  They can’t or won’t allow access to anything you don’t sign up for specifically. In other words the fine print doesn’t allow them to go into all of your accounts. Just the specified deposit account.  

Thank you! Super helpful. 

[nsxguy]

10 hours ago, bladehunter said:

I’d be cautious of this. 
 

if they can deposit directly to your bank.  I guarantee you they can also pull funds directly from your bank if a buyer files a claim , and without notice.   
 

this is how it works with a merchant credit card account. If eBay is essentially now being your merchant terminal, this is how it will work.  

 

So ?

 

You have a contract with eBay and are required to refund returns. Doesn't matter if you've "withdrawn" sales $$$ so they can't "grab" it.

 

If one of your sales is cancelled/returned you're going to have to give them back that money anyway. So what's the difference if they "take" it ?

 

Same thing with your payroll. If you're working with such a small capital reserve that your payroll checks clearing depends on "current" sales NOT being canceled/refunded, you're way too short of operating capital.

[brew4eagle]

31 minutes ago, nsxguy said:

 

So ?

 

You have a contract with eBay and are required to refund returns. Doesn't matter if you've "withdrawn" sales $$$ so they can't "grab" it.

 

If one of your sales is cancelled/returned you're going to have to give them back that money anyway. So what's the difference if they "take" it ?

Agreed, I don't see the difference either.  One way or another you should be providing the refund.  Fortunately I've never had to deal with this, but I assume something similar would have happened in the past with an ebay / paypal dispute even if you had moved the funds out of paypal.

Edited January 27, 2021 by brew4eagle

[golffeen007]

2 minutes ago, brew4eagle said:

Agreed, I don't see the difference either.  One way or another you should be providing the refund.  Fortunately I've never had to deal with this, but I assume something similar would have happened in the past with an ebay / paypal dispute even if you had moved the funds out of paypal.

Yes , there would have been a negative balance in you PayPal until the dispute was finalized one way or another.