Do Ebay want a direct debit from your bank or sign your bank account up for Open Banking?

andymatAgain

As everyone who sells on Ebay knows, the system is changing and I, like everyone else, is being asked to link my bank account to continue listing. I am a private seller and have been selling a lot of my late father's property.

Reading another thread on here, many people are saying it is just a direct debit that Ebay want to set up and people seem fine about that. They get paid directly into their bank account and if there is money they need to take from you for fees (if not taken from your buyers payment) or a refund that Ebay require you to make, they can do that using the Direct Debit. This is no different to what happens at the moment with PayPal. I would be happy with that.

However, when I started to add my bank details, they are asking me to log into my account via a third party supplier to Ebay called Trustly. This sounded a bit dodgy to me so I did some investigations and looked at the terms and conditions for trustly which you have to agree to to register your bank details (I'm not allowed to post links). They include the following:-

"Information We May Request From You or Obtain About You.  To access and use the PayWithMyBank Services made available to you by a Merchant, you may be asked for, among other things, a Bank name, a Bank login ID, password, PIN number, answers to security questions or other authentication information (i.e. your online banking access credentials), a Bank account number and bank routing transit number, a Bank account type, other Bank account information, and potentially other personal identification data, such as your name, driver’s license number, or taxpayer identification number.  With the authorization you have provided in these Terms, we may also retrieve information about you from such Merchant, your Bank or other third parties to facilitate your use of the PayWithMyBank Services as enabled by such Merchant."

And

"LIMITED POWER OF ATTORNEY.  Except as set forth in Section 4(f)(ii) below, for all purposes described in these Terms, you hereby grant Trustly a limited power of attorney, and you hereby appoint Trustly as your true and lawful attorney-in-fact and agent, with full power of substitution and re-substitution, for you and in your name, place and stead, in any and all capacities, to access third party sites, retrieve and/or verify information, process and use your information, all as described above, with the full power and authority to do and perform each and every act and thing requisite and necessary to be done in connection with such activities, as fully to all intents and purposes as you might or could do in person."

As this sounds like more than just a direct debit, I did some further research. I think this is giving a third party direct access to your bank account - ie Open banking.

Further, it seems there are two ways in which open banking can be implemented. Firstly by screen-scraping where the company gets you to log into your bank through their site and secondly via a proper API (a proper and official coded link between the bank and the third party). The first was supposed to have been shut down by now (late 2019 I understand) as it was put in as a stop-gap measure until the proper API method was brought in which is more controlled and safer. This is from the open banking (I'm not allowed to post links) website:-

"Some apps and websites currently use screen-scraping, which involves you giving them your login details and password so they can login to your account and analyse your financial information or make payments on your behalf.

With Open banking, you’re never asked to share your password or login details with anyone other than your own bank or building society. Safe. Secure. Simple."

So after all this, I am left with a few questions.

Do I allow Ebay to log into my account?

Should I open another account specifically for Ebay stuff?

Why do Ebay not make it explicit that what they are asking for is access to your account?

Are there any alternatives to Ebay?

All the writing on open banking constantly says that it is always your choice to open up your banking to third parties and that if you are not comfortable with it, don't do it. BUT if you want to sell on Ebay, you have no choice!

What do you think?

olgadapolga

I had the option to use the Trusty thing but elected not to. I added my details manually and had to upload a bank statement.

DH did not have any options, he had to enter his details manually but didn't have to upload a bank statement.

Clova138

I've just signed up for managed payment. Only info required was confirmation of my full name and address, DOB and account sort code and number to set up a DD. This was with HSBC so the process might vary between banks?

andymatAgain

I don't know what others were seeing but I opted to add my bank details manually and had to enter my sort code and account number. I was then asked to approve the terms and conditions which are with Trustly and included the terms I mention above.

If you click on the big green button and agree to the terms and conditions, check very carefully what you are agreeing to. I am yet to be convinced that all you are doing is approving a direct debit instruction. I think you are signing up to open your bank account to Trustly for Ebay to access when they want to using a screen-scraper version of open banking.

andymatAgain

Actually, thinking about it, maybe doing it manually, you are using the API route to connect your bank account if it exists which would be safer I think.

As I say, I do not believe this is just a Direct Debit instruction. If I am right, the manner of getting people to enter their bank details does sound a bit deceptive and in my view Ebay should be open and honest about what they are asking you to do. I have never seen anything in any Ebay communication that says the words Direct Debit. Has anyone else?

jon81uk

Are you private or business seller?

I am a private seller and bank with First Direct and eBay just set up a direct debit (to collect money if on the rare occasion a refund is needed to a buyer) and they store my bank details to pay the profits to me from sales.

andymatAgain

I did mention it but, like you I am a private seller.

Are you sure you just set up a Direct Debit? Did you see the words Direct Debit? Did you see the Direct Debit guarantee logo? Can you see a direct debit on your bank account to Ebay?

I would really like to know because I have not been offered that option and if a Direct Debit route is available, why have I not been offered it? I would be happy with that option, as I have said.

Clova138

I checked the T&C's link no mention of Trustly just the standard DD Guarantee and the same on the confirmation email I have received which was titled 'Important: Confirmation of the set-up of your Direct Debit Instruction'. Besides they've not requested the additional online banking logon info needed to access information via open banking from me. DD only is definitely being offered to, at least some, people as an option.

andymatAgain

Well that is very interesting Clova138. I wonder why I am being asked to accept terms and conditions from Trustly?

After you entered your bank account and sort code, did you get a white box pop up with a green button asking you to accept the terms and conditions? When I get the white box it has a small Trustly logo in the bottom corner?

Clova138

Nope none of that. Just a plain form on ebay to enter just my account details and a tick box to agree to the DD terms. Have you tried the Enter Manually option?

pbartlett

I have recently done it (private seller) and confirm all they ask is your sort code / account number and DOB - no mention of Trusty. Definitely not and Open Banking request, as that would require you to sign in.

Once the info is entered, an ebay message arrived confirming the set up of your 'direct debit'.