What is eBay Managed Payments?

What is eBay Managed Payments? Essentially, eBay, like many other major marketplaces, will handle its own payments. Currently, PayPal handles eBay payments.

eBay is already testing its Managed Payment system. Some sellers already have opted into testing eBay Managed Payments, and more will be transitioned into the system this year. By 2021, eBay expects most of its sellers to be on Managed Payments.

We’ll give you a concise summary of what changes to expect before the transition goes into full effect. Note that the service is evolving, so you’ll want to visit the website for up-to-date information.

How do I join eBay Managed Payments?

Currently, only sellers who were invited can participate in eBay Managed Payments. If you have multiple seller accounts, you can request that eBay add the other seller accounts to the new payment system. You’ll want to be aware of some of the current limitations before you decide to join.

What are the advantages for sellers?

When making the transition to eBay Managed Payments, sellers will need to provide a bank account so that eBay can deposit sales proceeds. Sellers on other platforms like Etsy and Amazon will find this process familiar.

Currently, customers will send you money via PayPal and eBay will bill you monthly. You’ll then request a disbursement from PayPal, less any funds held in reserve.

Here are the major changes sellers can expect:

  • Streamlined management of selling and payments
  • More transparent invoicing so that you see all your fees in one place, including payment process fees
  • Daily payouts
  • New payment methods like Apple Pay
  • Streamlined seller protection with claims and chargebacks handled through eBay
  • Lower processing fees, currently a flat 2.7% instead of 2.9% + 30¢ with PayPal

What are the disadvantages for sellers?

While eBay Managed Payments have many advantages, there are still some disadvantages to using the new payment system. However, these disadvantages are likely to be resolved as the platform matures.

  • Customers can’t pay with PayPal until it’s integrated, expected sometime mid-2019
  • eBay Managed Payments does not support Global Shipping Program (GSP)
  • USPS shipping labels are still paid through PayPal
  • No listings on eBay International Services
  • Does not support eBay for Charity

What changes can buyers expect?

For the most part, buyers will experience a little confusion since customers expect to pay with PayPal.

eBay Managed Payments will simplify the checkout process so that there’s no PayPal login required. They’ll simply enter their credit card information as they would with any other online purchase. They’ll also have the option to save payment method.

What are some other changes buyers and sellers can expect?

This transition over to eBay Managed Payments will change the claims process for buyers and sellers. For sellers, managing claims will be easier since they’ll only have to deal with eBay instead of both eBay and PayPal.

Previously, sellers faced the very real situation wherein they’d win a fraudulent claim on eBay but lose that same claim on PayPal. PayPal would then refund the buyer. Or sellers would be bounced back and forth between eBay and PayPal to resolve issues.

With eBay handling payments, sellers can expect a more streamlined process and more consistency with customer claims. Many of the disadvantages are likely to be resolved as eBay continues to work on its own payment system. Be sure to check out eBay for the latest updates.

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