Ina Steiner EcommerceBytes Blog
News and insight focusing on ecommerce.
by Ina Steiner, Editor of EcommerceBytes.com
Wed Nov 14 2018 11:10:12

eBay Ramps up Managed Payments Push in November

By: Ina Steiner

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See important update below with eBay's response.

eBay is ramping up its efforts to push sellers into managed payments (MP) by forcing new accounts to use it (this is not the case, see update below) and by running a seller promotion offering discounted fees for existing sellers who voluntarily enroll. eBay will also bar existing sellers from offering their own merchant credit card accounts beginning March 1, 2019.

A reader discovered she could not opt out of MP and could not offer PayPal on a newly opened selling account. We sent an email to eBay asking for confirmation and details. 

It's not surprising eBay would want to push new sellers into MP, but what is troubling is that eBay gives no warning to new account holders, according to the reader: 

"There is no warning when setting up a new seller account that PayPal will not be accepted," she said. "The only way a new seller would be aware is if they paid attention to the "Payment from Buyers" settings." She explained that in the payment preferences of her new account, the settings for accepting PayPal are auto-populated with no way to edit to add PayPal. 

(Update: The seller confirmed later she was able to link her PayPal account to her new eBay account, we wonder if that's what had initially prevented her from setting her preferences to accept PayPal in listings.)

(Update 11/15/18: The reader got back to us - she said her account preferences would not let her change the PayPal settings, but after hearing back from us, she created a listing to test it, and the listing did accept PayPal. She pointed to a user on Reddit who reported having the same problem of not being able to set PayPal preferences in settings as she had.)

In the screenshot she sent us showing the settings, we discovered eBay is also prohibiting new sellers from using their merchant credit card accounts, which many larger merchants and enterprise sellers do. The notice states: "New sellers can no longer set up Integrated Merchant Credit Card (IMCC) as a way to process payments." 

The notice goes on to state, "Current sellers can continue to use IMCC until Mar 1, 2019. Although you need to remove this payment option from your listings by then, buyers will still be able to use a credit or debit card when they buy your items."

eBay is also trying to entice existing sellers to enroll in its payments program through a promotion that provides them with a 20% discount on commission fees for the month of December if they sign up by November 27 - by invitation only. (We wonder how early adopters of eBay payments feel about that.)

And as we previously noted, eBay is now requiring merchants to enter their credit card or debit card information when redeeming coupons they're entitled to as part of their eBay Stores subscriptions because the sole supplier enrolled in MP.

Update 11/14/18: An eBay spokesperson responded to our inquiry and said eBay was not forcing new accounts in managed payments, stating that was "not consistent with the experience we are providing in managed payments. Right now, this is an invitation-only program for carefully selected existing sellers."

She went on to say:
 
"Sellers are central to creating this new experience, and we've been partnering closely with them to share our vision for the end state of managed payments. We're taking extra efforts to listen to sellers' feedback, concerns and ideas.
 
"As part of this, we are working with sellers one-on-one to understand whether managed payments is a fit for them. If managed payments doesn't work for a seller, we want to work with them to see if we can help them be successful with the changes, ensure we understand and document what isn't working, and if needed revert their account to the prior state. That said, the process to revert accounts to their prior payment settings can be complex as orders and listings can be in different states, and this process is managed individually with each seller."

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Readers Comments

Perminate Link for eBay Ramps up Managed Payments Push in November   eBay Ramps up Managed Payments Push in November

This user has validated their user name. by: toolguy

Wed Nov 14 11:27:24 2018

When eBay pushes our selling account to only accept MP we will no longer be able to buy on eBay as our only credit/debit card is funded by Paypal. . .

We have a B of A account for eBay to deposit into but no credit card with them.

The only credit card we have says Paypal Mastercard and isn't really a credit card but just a debit card that is accepted like a credit card. . .

Why is eBay doing this? No Paypal = NO eBay!

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by: buffalochick This user has validated their user name.

Wed Nov 14 12:02:11 2018

Wow, no more merchant accounts?  Let's see how this flies with the large sellers that ebay courts... They are really ramping this up, a lot more quickly than they said they would. No paypal for any new seller account, or just a new account? What if you want to convert an old account into a seller account?  This is a last ditch effort by ebay for a money grab.  Desperation at its very finest. Didn't know they could go this low. (yes I did...)

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This user has validated their user name. by: Rexford

Wed Nov 14 12:26:18 2018

"offering discounted fees for existing sellers who voluntarily enroll"

All those potentially lost buyers who prefer to and will only use PayPal are a lot more valuable to a seller than a temporary 20% fee discount.  If it is so great why is it (like so many of eBay's schemes) so difficult for eBay to get sellers to adopt it.  Sellers don't trust eBay.  Most have been burned too many times.

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by: pace306 This user has validated their user name.

Wed Nov 14 12:32:15 2018

Can you say DESPERATION???? I know I CAN boys & girls!

You have to have some set of CAHONES to do this stuff - but then again its eBay - the internets biggest gangsters.

I again quote the so called eBay "Seller Advocate" (who probably ONLY advocates raises for himself at this point - hes utterly useless for anything else" - FROM HIS OWN BOOK  " 35. Eliminate the roadblocks to selling your products. If a buyer wants to use PayPal to buy your product and you can't accept a PayPal payment, that's a problem. It's a roadblock to selling your item, making a profit and moving on to the next sale. Take down the roadblocks! This is my golden rule of retail: Make sure customers who come in the door have a way to pay, and customers who leave have a smile and a full shopping cart. The point is simple--sell your item, collect the money, and ship the product."

Griff is too dumb to know which way is up - retire in peace old adversary - your travels and unhelpfulness is no longer needed.  

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by: pace306 This user has validated their user name.

Wed Nov 14 12:42:36 2018

LMAO - it just gets better each time - heres a NEW one from the Grifter.

"40. Open a premier or business PayPal account. Many buyers limit their eBay shopping to those sellers who offer PayPal. Using PayPal makes tracking sales, invoicing and bookkeeping much easier. -J.G."  LOL someone wake him up and have him read the corporate blog, or this place - he apparently doesnt know what his employer is up to.

"45. Cultivate your customer database--it's a gold mine. You can use it to market any of your new items directly to qualified customers. For example, you could send a monthly newsletter to your database to describe your new products or to give these customers discounts. But before you proceed with any marketing campaign using your buyers' e-mail addresses, be sure you understand and comply with the national spam laws." - BUYERS EMAILS!??? Does the GRIFTER know eBay hid them??????

"19. Clearly list your terms and conditions, as well as shipping, returns, warranty and guarantee policies. You can use an existing template to help separate the terms and conditions into sections and highlight them with bullet points, so people can read them easily. -C.S."  Silly GRIFTER Sellers cant have their own policies!

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by: Silver Ice King This user has validated their user name.

Wed Nov 14 13:25:23 2018

Since Ebay is limited to 5% of Sellers as I remember using the new service the first year they start transitioning, this tells me that Ebay is falling far short of the numbers and that Sellers in much larger numbers than Ebay is disclosing are rejecting the new MP.  They have become desperate as they cannot force anybody in at this point in time but I think Wenig is getting a good preview of what to expect once he tries his policy of they will use it if they want to sell on Ebay going forward.  

If I were in Wenigs shoes, I would be frantic at this point trying to figure out what to do when all the sellers are supposedly going to be required to use MP in 2021 and watch the mass exodus that I believe is going to occur, if it has not already happened as they try and move forward with forcing MP on all sellers and buyers.

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by: ebayout This user has validated their user name.

Wed Nov 14 13:35:46 2018

"eat your spinach" is still not a good motivator.

I repeat myself...Wenig has no concept of human behavior.

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by: buffalochick This user has validated their user name.

Wed Nov 14 14:08:05 2018

And... do you all REALLY believe that ebay will allow PP back in next year? "should" is always the word of choice. Why would they do that? To actually sit back and watch their payment system abandoned? They are just duping us all into believing that until it's too late. Prepare yourselves. PP will be gone, abolished next summer. Can't u just hear them?  It didn't fit into our business model, PP wouldn't work with us, Our payment system is better than we thought, one excuse after another, PP will not be woven back in. I think they would rather see their site completely fail than give up the profits they think they are making from this fiasco.  NO ONE trusts ebay, that is a fact. Ebay just doesn't get that yet. But they will.

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by: songe-d-automne This user has validated their user name.

Wed Nov 14 14:45:37 2018

I "trust" ebay to the point where I dump my paypal account on a daily basis to prevent them from reaching in and taking what they think a buyer might want at their whim.

An out of control buyer almost got my mortgage payment bounced last month when they put a hold on funds. Giving those clowns direct access? I think not.  

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by: RL15 This user has validated their user name.

Wed Nov 14 15:43:40 2018

incompetent idiots - below is just a reminder...

"It’s not going to be optional. We’re not going to hold peoples’ hands and beg them to move over. We’re basically going to say your eBay account is now your full end-to-end eBay account for all your activities including payments. And that’s the way it works on every other marketplace."
– Devin Wenig, president and CEO of eBay

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by: Silver Ice King This user has validated their user name.

Wed Nov 14 15:53:53 2018

@songe-d-automne

If you have not already done so I would check with either my current bank or my personal favorite is a credit union, and open up a separate account that is for this Ebay activity only.  i would never trust them to have access to my regular checking account for the exact reason you just mentioned.  If I am still around when this change happens to me I will also set up the account to sweep to a zero balance nightly so that Ebay never has access to my funds as I just do not trust them at all !!!!!..

As they increase the number of accounts under this program I fully expect the program to have more and more glitches and errors and CS is not going to be able to deal with this as access to the credit card processing information should not be accessible to just anybody, but only those with the training and BACKGROUND CLEARANCE to do so.  The way Ebay has begun to operate on a shoestring budget  because they are spending money that is being charged as an expense rather than a Sales Discount to grossly overstate the GMV each quarter (the 8-20% discounts they continually give) that Ebay announced this past quarter that they would be cutting back on expenses so I cannot see them adding the additional staffing necessary to be able to address these issues.  

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This user has validated their user name. by: Ina

Wed Nov 14 16:19:15 2018

An eBay spokesperson responded to our inquiry (see update above). We've asked if they are aware of any bug impacting sellers' ability to offer PayPal.

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This user has validated their user name. by: RKTOYS

Wed Nov 14 16:25:40 2018

Dummy just keeps getting more stupid as this goes on.  eBay's customers, sellers, don't want this.  End of story.  The board needs to fire him yesterday.

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by: SANT1N1 This user has validated their user name.

Wed Nov 14 18:18:29 2018

They're going to eventually ban paypal payments? That's crazy! Surely Wall Street isn't going to approve, right?

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by: ebayout This user has validated their user name.

Wed Nov 14 18:25:45 2018

ebay is bleeding out on the operating table, and is in effect refusing a transfusion.

You can't fix stupid, but you sure can fire it.

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This user has validated their user name. by: iheartjacksparrow

Wed Nov 14 19:21:57 2018

Ina's update sounds exactly like another statement someone at eBay put out a while back. I remember the other person saying they just couldn't flip a switch and take an account back to the way it was, yet they can flip a switch so that all your listings are immediately in Managed Payments. Their explanation don't make any sense.

Also, how many sellers with merchant accounts are going to freak out when they learn that come March 1st they will be forced into Managed Payments with a, most likely, higher processing fee? I would imagine those sellers will be bailing right after the holiday season.

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This user has validated their user name. by: Ina

Wed Nov 14 19:23:40 2018

No, they will begin allowing PayPal in managed payments, but not until July 2019.

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by: Iwishiwaskidding This user has validated their user name.

Wed Nov 14 21:26:02 2018

They do realize that, lacking a separate dedicated bank account, is what keeps many people exclusive to selling on ebay?  Yes, etsy requires it.... thats why i never sell there, pp is easy.  If this is enforced, nothing is stopping me from hippity hopping on over to etsy, and a few other apps and sites that require it.  Ebay is not going to stay a first listing selling place because THEY will have opened up that door.
They really wanna insist I spend my entire day on stuff that makes the competition easier to sell with?      

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This user has validated their user name. by: toolguy

Wed Nov 14 21:53:59 2018

I need my money day to day.

If it takes eBay 2 days to pay me it will take 2-3 days for me to ship.

I wonder if Paypal is considering opening a venue of their own?

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by: The_Original_Poster This user has validated their user name.

Wed Nov 14 23:46:17 2018

I am not the original poster.


Our business has been on eBay for 12 years, and been using a merchant account for over 5 years.  We will NOT be switching over to Managed Payments... we will be moving in another direction if and when eBay removes merchant accounts as an option.  We do not need anyone else to process our payments, and certainly do not trust eBay to do so.  Considering how often eBay makes major changes to policies, seller requirements, and other site features, we do not want to worry about jumping through hoops to ensure that our payments come through and are not put on hold, etc.  I've had numerous discussions with eBay reps who have given rather weak reasons to switch to MP, but it's just not going to happen for us.  We have to make a decision that we feel is best for our business.


Our yearly GMV on eBay is over 1M, which in the bigger picture isn't too big, but I'm sure it'll add up if other sellers who use this payment method do the same.  The sad thing is that if eBay later changes their mind because of the huge pushback from sellers, they'll most likely be gone and not coming back.  


Admittedly, we're a bit miffed now not only because of the short notice (what happened to 2021?), but also because we're finding out through Ina, and not eBay itself.  That's just ridiculous, and is an indicator of the type of company that we do NOT want to trust with our funds.


It's been a wild ride, eBay, with a lot of both good and bad memories.  But this will be the end for our partnership if it goes through.

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