IMPORTANT- managed payments

soolin

The ebay business seller news released today has the long expected announcement about managed payments (the new system that has already started rolling out in the US)
This is a very long cut and paste from the email:

We will start managing payments on the marketplace in the UK in 2020. This means we'll be managing the payments experience end-to-end for buyers on the platform. As a seller, your sales transaction funds will be paid directly to your bank account and no longer into your PayPal account. The majority of UK business sellers will be expected to enable their account for managed payments by the end of this year.   Sellers have been central to creating this new experience. We’ve been partnering closely with sellers in the US and Germany, where the experience is already live, to share our vision on how eBay will manage payments. We’ve taken extra efforts to listen to sellers’ feedback, concerns and ideas. We’ve already learned a lot and made enhancements to the process to make sure you will have a good experience. We also understand that this is a change in the way you manage your business with us. We’ll be partnering with you to make sure this transition is as smooth as possible and that your business continues to thrive on eBay.  With eBay managing payments, we can simplify the end-to-end payment experience for buyers and sellers. ​​

• One place for everything - you’ll have one place to access all reports and to manage disputes and refunds. You’ll have a single company to contact for customer support and fees. Plus you’ll get payouts directly deposited into your bank account as well as payout scheduling options.

• More ways for buyers to pay - we plan to provide buyers with a larger selection of payment options, such as credit card, debit card, Google Pay, and PayPal. We’ll also be offering Apple Pay as a payment option on iPhone and iPad. This will all be done through eBay without you needing separate accounts to accept these payment methods.

• Most sellers can expect to see savings compared to their current payments processing fees.

eBay continues to evolve as a modern marketplace, with the transformation of payments as the next step in that evolution. More details will be announced over the next couple of months as we get ready to start gradually enabling business seller accounts, but in the meantime, you can express your interest to be one of the first sellers to be enabled for managed payments.

soolin

There is a link here:

https://sellercentre.ebay.co.uk/business/managed-payments

This is the bit that is raising questions on other forums already:

What does it mean for my seller fees when eBay manages my payments?

Most sellers can expect to see savings compared to their current payments processing fees. All sellers will also benefit from a consolidated billing structure and with more visibility into sales and payouts. With eBay managing your payments, you will pay fees to eBay only, and not separately to another processor. This means you will no longer pay fees directly to PayPal.

lindens

I am looking forward, as a business seller, to having consolidated reports and billing, and hopefully fewer fees.
However I kind of use Paypal as my bank account, mainly leaving the money in there, pay my monthly fees, and just transfer money if I am sourcing. I will have to rethink that part now.

soolin

lindens said:

I am looking forward, as a business seller, to having consolidated reports and billing, and hopefully fewer fees.
However I kind of use Paypal as my bank account, mainly leaving the money in there, pay my monthly fees, and just transfer money if I am sourcing. I will have to rethink that part now.

I look forward to seeing some more details about fees , as at a week or so ago they were still surveying people asking for thoughts about best options - see my thread here:

https://forums.moneysavingexpert.com/discussion/6102813/ebay-survery-re-managed-payments#latest

The other things I think are worth considering - just as a starter (there will be more) are 
1) what percentage of fees will managed payments retain if buyer cancels or if money is refunded
2) Has the impact on collection only items been considered?- at the moment if a buyer collects and seller is sensible enough to insist on  cash then seller pays their 12% or whatever on the sale amount and as paypal is not involved, pays nothing else. In future if the sales percentage is say 18% then seller will pay 18% on the sale price - and the fact that ebay haven't managed any payments still doesn't give them any discount. 

forgotmyname

Will this give credit card users more protection?   Remove the paypal 3rd party payment issue?

Most sellers  =  Larger sellers, where the smaller seller loses out, especially with collection items as you
mentioned.

I can see those that use paypal to hide their finances will not be happy if direct payment is the only
option.  Will it help clear up the dodgy sellers?

RFW

I barely sell on Ebay so it's not really an issue for me either way. Ebay will increase their fees and, for now, keep that a little lower than using Paypal. This makes them competitive with Amazon, their current fees are about the same as Ebay/Paypal combined fees. The problem I see is if a customer still pays by Paypal. I assume that Ebay won't be paying those Paypal fees so that will be an extra cost.

soolin

forgotmyname said:

Will this give credit card users more protection?   Remove the paypal 3rd party payment issue?

Most sellers  =  Larger sellers, where the smaller seller loses out, especially with collection items as you
mentioned.

I can see those that use paypal to hide their finances will not be happy if direct payment is the only
option.  Will it help clear up the dodgy sellers?

Lots of comments and anguish on the community boards, especially around the issue of when sellers will receive payment. As people are pointing out, at the moment we get a PayPal payment from which we can pay postage or draw money down to our bank, the new system suggests that payment is only initiated to the seller once item has been dispatched, rather like the Amazon system, which means people on tight budgets may struggle with postage costs. 

Also as you say, this leaves eBay managing bank chargebacks , which sends shivers down the back of anyone who has tried to reason with the foreign call centres who like to work to a script and often have no idea how eBay UK works. 

RFW

forgotmyname said:

Will this give credit card users more protection?   Remove the paypal 3rd party payment issue?

I can see those that use paypal to hide their finances will not be happy if direct payment is the only
option.  Will it help clear up the dodgy sellers?

If I was buying on Ebay I think I'd still prefer the extra protection Paypal gives me irrespective of what Ebay's new system claims to be.
On the dodgy sellers part I doubt it will help. They won't be too fussed about where the money goes. It sounds like it will be similar to Amazon's system and they aren't short of dodgy sellers!

soolin

It looks like eBay management have decided to go ahead with the planned roll out to managed payments is summer despite the current situation. I have an email suggesting that those sellers identified as being most likely to benefit will be able to pre register soon, with others following as it is rolled out. 
My concern is that eBay are still glitchy , many sellers are facing severe hardship due to needing to close up or just lack of sales and now might be bombarded with messages to pre register for a scheme which, at this point in time, has nothing online to show costs, liabilities, terms or conditions.

This is the managed payment link

https://sellercentre.ebay.co.uk/business/managed-payments

soolin

https://www.ecommercebytes.com/C/letters/blog.pl?/pl/2020/5/1589920103.html
also lease note there is a thread running already about managed payments here:
https://forums.moneysavingexpert.com/discussion/6130072/ebay-to-go-ahead-with-managed-payments-roll-out-this-summer#latest

As eBay moves towards managed payments there has been a lot of discussion on various forums about some of the 'banned' sale categories with Ayden. For instance Ayden cannot be used to take money for bullion or car sales and since they are still currently allowed on ebay something will have to be done. The article linked to above suggests that eBay may move them away from the main eBay arm to avoid using the new system. 

My thoughts are that firstly car sales shouldn't need to be affected as cash on colelction is usually the payment method for a car, so nothing changes. Coins and other bullion are more interesting as eBay is a large market for collectable bullion and this may have to change. 

soolin

Sellers who have been looking at the figures in detail suggest sales that historically went through a micro account will now be considerably more expensive, but in some cases more expensive sales may be a bit cheaper overall. 

Payments will be made directly to your bank account and that has caused some issues in the US and potential issues here already. The bank details must be the same as the eBay account details , for the vast majority of people that is no problem, for some businesses it is. Some businesses have bank accounts in one business name whilst trading on eBay under a different name or even as a sole trader and that might not work when setting up managed payments.

It is interesting to note as well that the roll out in the US which is about a year ahead of the U.K. has not met any of the projected targets . Here in the UK I am receiving almost daily emails, updates etc asking me to pre register so I can go live soon.