New EBay payment regime

[Alan Wood 4Participant @alanwood4]

[Alan Wood 4Participant @alanwood4]

I am currently suffering my first payment from EBay relating to a sale.

Assuming you have signed up to the new system, EBay now credit your bank account directly with the funds due from a sale rather than it being instantly passed to your PayPal account as a credit.

Clearly this means that anyone trading on EBay can no longer keep their profits or losses 'air side' in the PayPal account where it would have been away from their auditors prying eyes.

EBay have had my monies sat in their bank account for 2 days so far. I am waiting for the message that they are having teething problems with the new system and it has nothing to do with the interest received from sitting on the funds.

Anyone else being similarly shafted ?

[Lee RogersParticipant @leerogers95060]

I've had 2 sales to the same person on the same day ,one paid out on paypal the other on the new system. Took a bit of head scratching to sort it out because they were both for the same amount. The ebay site is a monster of a thing , I doubt that anyone is fully aware of how it works. Worryingly I recon the same applies to much of the banking system.

[HollowpointParticipant @hollowpoint]

Had a bit of a nightmare with this new payment thing. But that's a story for another day.

Anyway..

Firstly you need to choose whether you want to be paid (into you bank account) daily or weekly. The payments are then "processed" which takes about a day, before being sent to your account. This usually takes another day but reading their terms it can take upto 4 days!

For me I am usually paid very early morning and then the funds appear in my account about 1pm

[SillyOldDufferModerator @sillyoldduffer]

Posted by Alan Wood 4 on 23/04/2021 08:42:36:

… I am waiting for the message that they are having teething problems with the new system and it has nothing to do with the interest received from sitting on the funds.

 

As the Bank Rate today is only 0.1%, it's unlikely the delay is due to ebay wanting to profit on interest! When the UK Bank Rate peaked at 17% in 1979 it was worth holding on to money. Not today.

There's more. The Bank of England issued a warning in February that they might introduce a negative bank rate later this year, i.e. where customers pay the bank to look after their money. The purpose of low and negative interest rates is to boost economic activity by encouraging spending rather than saving. If negative rates are imposed ebay will lose out by hanging on to customer money. I'm sure ebay understand the risk!

As negative interest rates would seriously upset voters the government is extremely keen to avoid introducing them. However, if January's poor trade figures (40% down) had not recovered somewhat in February (only 20% down), they would have probably been forced into it. As it is, fingers crossed, the risk of negative rates seems to have receded. Rates will remain rock-bottom low because government still need consumers to spend, spend, spend. However, if the trade figures worsen or level out rather than improve as the year goes on, expect to pay interest to the banks or anyone else who has your money!

May seem crazy but here's nowhere else to go when the Bank Rate is already down to 0.1%pa and the economy  still isn't responding. Denmark has had a negative central bank rate since 2012, and Japan since 2016. Switzerland is -0.75% and Sweden 0%. Most of the rest of the world is considering negative rates, but they are controversial.

Dave

 

Edited By SillyOldDuffer on 23/04/2021 11:32:00

[Clive HartlandParticipant @clivehartland94829]

My local Building Society is at the moment paying interst of 0.47%, this having fallen from 1.7% in a few weeks. If I choose a long term fund I can get 1.5% at this time,

I think if it happens (negative interest) a lot of mattress banks will happen.

Ideally buy a home safe and secure it well. but dont tell anybody.

[David ColwillParticipant @davidcolwill19261]

I have been on managed payments for a while now. Once set up it is reliable. Mine is paid daily. It is another example of eBay telling you how great it is for the customer, whilst slipping in a crafty hike in fees.

David.

[jimmy bParticipant @jimmyb]

I was wary of this but now prefer this method.

Having bothered to read the small print, I'm not looking forward to a dispute!

I doubt the tax man cares about the few extra quid I make

Jim

[Phil WhitleyParticipant @philwhitley94135]

As I onderstand it, the Bank of Englands warning applies to the terms it may use in the future in dealings with the retail banks only, trying to charge customers for savings held by the bank would be very foolish, as the run on the banks that this could create could bust the lot of them!

[Michael GilliganParticipant @michaelgilligan61133]

Last night, I made an ebay purchase from a U.K. supplier

Today, I received this message from the seller:

[quote]

Hi Michael

Thank you for your purchase! I will get this on its way as soon as the funds have cleared (ebays 2 steps backwards managed payment system is very slow). I will be in touch when all is sorted!

Best regards
Mike

[/quote]

Is this, thanks to ebay’s new system, the future ?

MichaelG.

[Brian Baker 2Participant @brianbaker2]

Greetings, I am not happy with the idea of Ebay having my bank account details, given that they have been hacked before, and will now be an even bigger target for hackers, one of whom will eventually through.

I have decided to sell the bits that I have on other websites.

Regards

Brian B

[Martin King 2Participant @martinking2]

Hi All,

Switched to Managed Payments a while ago now and get my money very early every Tuesday morning with out fail so far.

It means that I no longer have to reconcile my PP account every month to account for refunds, postal "losses" etc which save me quite a bit of time as the payments are now net of all this.

I used to dip into the PP account ever so often and transfer to our EBay business account which meant sorting out all the odd fees like InkFrog, disputes etc.

It is supposedly a very tiny bit cheaper this way, (until the next EB spurious hike in charges)

Cheers, Martin

[GeorgineerParticipant @georgineer]

I had an interesting 'conversation' with ebay earlier this month on this topic. I've edited out most of the waffle, but basically it went like this:

"I understand that ebay will be able to pay money into my bank account, but will ebay be able to WITHDRAW money from my bank account? If so, for what reasons, and what protection will I have?

To answer your question, yes eBay can withdraw from your bank as well, however this is generally a pretty rare situation.

It would happen when your available balance drops into the negative amounts. If you sell a lot, this almost never happens as your new sales will generally cancel out things like returns which could make the amount go negative.

I do more selling than buying and expect to continue using Paypal. Can transactions made through Paypal affect whether Ebay takes money from my bank account?

Paypal is no longer the payment processor so all of the money paid to you as a seller would affect your bank (usually paying into)

In other words, it doesn't matter how a buyer pays, we process the money the same way

Thank you for being the best part of eBay and I hope you have a wonderful rest of your day"

So they can take money out of your account as well as pay it in, and there was no word of any protection, unlike direct debits where there is a Direct Debit Guarantee published. I haven't found time to follow this up, but I am very dubious about signing up to it.

They also insist that it has to be a bank account, not a savings or credit card account.

George B.

[Martin King 2Participant @martinking2]

Michael G,

We ship as soon as the item is shown as paid rather than keep buyer waiting, seems the best way to us?

Martin

[Mark RandParticipant @markrand96270]

Posted by Brian Baker 1 on 27/05/2021 16:22:28:

Greetings, I am not happy with the idea of Ebay having my bank account details, given that they have been hacked before, and will now be an even bigger target for hackers, one of whom will eventually through.

I have decided to sell the bits that I have on other websites.

Regards

Brian B

Umm. People can't pay money to you without having your bank details unless you want to go back to receiving cheques of envelopes full of cash…

I'm guessing that these changes are because EBay no-longer own PayPal, so they don't see any advantage in having most of the money going through that entity.

Edited By Mark Rand on 27/05/2021 18:10:57

[Michael GilliganParticipant @michaelgilligan61133]

Posted by Martin King 2 on 27/05/2021 17:49:20:

Michael G,

We ship as soon as the item is shown as paid rather than keep buyer waiting, seems the best way to us?

Martin

.

It’s all O.K. Martin … he posted it today

I can only assume that ebay’s system must be quicker than he anticipated.

MichaelG.

[jimmy bParticipant @jimmyb]

Once ebay say the item has sold and been paid for, you can ship.

In the agreement with eaby, they can take money for disputes that go against you (£17.60 I think) as an admin cost.

I find it much easier than paying upto £100 selling fees…

Jim

[EmgeeParticipant @emgee]

Posted by jimmy b on 27/05/2021 18:13:30:

Once ebay say the item has sold and been paid for, you can ship.

In the agreement with eaby, they can take money for disputes that go against you (£17.60 I think) as an admin cost.

I find it much easier than paying upto £100 selling fees…

Jim

You're still paying selling fees based on the sale price, but also the buyer is paying OTT if collecting an item and paying cash, makes quite a difference on a machine purchase.

I guess the next eBay move will be to add a buyer premium, they are a greedy company that pay very little tax worldwide and will continue to increase seller costs to the very maximum the market will stand.

What alternative selling platforms are available with such a large audience ?

Emgee

[Anonymous]

Posted by Georgineer on 27/05/2021 17:49:06:

So they can take money out of your account as well as pay it in, and there was no word of any protection,

Sounds like it might be worth setting up an additional account specifically for eBay transaction and keeping a minimal amount in it (transfer deposits as they come in). Could be done at a different bank if necessary.

As regards negative interest rates, Banks in Canada haven't paid interest on regular accounts in decades – they just charge you a monthly fee. I guess you could call that negative interest rates.

[Anonymous]

Posted by Mark Rand on 27/05/2021 17:50:54:

Umm. People can't pay money to you without having your bank details unless you want to go back to receiving cheques of envelopes full of cash…

No reason it can't be a one-way deal though …. deposit but not withdraw. All they need is your bank account number and they had that before in the days of cheques so it's not particularly secret.

"Envelopes full of cash" is still alive and well …..

[Martin King 2Participant @martinking2]

"Envelopes full of cash" is still alive and well …..

So very glad to hear it I think it is called FaceBook Marketplace….!

Cheers, Martin

[Brian Baker 2Participant @brianbaker2]

Greetings Mark, thank you for your comments re cash payments.

Since most of the items I infrequently sell are heavy, or too large to post, people usually collect from me, so cash is fine, and for smaller items, they can make a Paypal payment to my account.

works OK for me.

ebay have been hacked before, I think.

regards

Brian B

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