Ina Steiner EcommerceBytes Blog
News and insight focusing on ecommerce.
by Ina Steiner, Editor of EcommerceBytes.com
Mon July 30 2018 16:32:22

eBay Bans PayPal in Early Payments Beta

By: Ina Steiner

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Details are coming out about the new beta test eBay is rolling out in September as it moves to take over payments management from PayPal. 

There's some good news and bad news for sellers, but so far eBay is not releasing details publicly. The biggest drawback is that buyers will not be able to use PayPal to pay sellers participating in the test - a provision that a reader told us he believed would negatively impact sales.

It's hard to see how he's not correct about the impact of the temporary ban on PayPal payments for beta participants. Buyers (many of whom are also sellers) find it convenient and have been drum beaten into using PayPal - in fact, it's the only way to be protected under the eBay Money Back Guarantee buyer protection program.

Note that when eBay makes the final transition, it will allow PayPal on the platform, but apparently not during the initial testing.

Another major caveat: once you sign up, you can't opt out of the test.

Here's some information provided by an EcommerceBytes reader who is being recruited by eBay:

- eBay will accept all credit cards and Apple Pay during the beta test period. 

- They also will only have a 30-day maximum refund period unlike the 6 months for PayPal. (We find that hard to believe, since buyers can always turn to their credit card companies directly to file a chargeback.)

- The payments will be deposited directly into sellers' accounts and eBay will not take out the processing fees from the deposits but will add them to sellers' monthly eBay invoice, "which means you will have use of all your money for a longer period of time."

- "eBay fees for the processing will be 2.7% with no fee for the transaction which is slightly better  that Paypal (right now)."

- eBay will not allow sellers to accept PayPal during the beta testing.

"I am SURE my business would suffer if PayPal was not an option on the beta test and would not participate unless PayPal was an option on the test right from the start," the reader told us. 

Another reader sent us a link to a video from a seller who shared what she learned about the new beta at an eBay Open session. Rebecca, aka Bexa Boss Lady, was still in Las Vegas when she recorded the video after having attended the session on payments.

She was the source for the important tidbit about not being able to opt out of the beta program once you're in. She also said participants would not be able to accept PayPal

If you're at all interested in what eBay is doing with regard to payments, especially if you're considering participating in the beta program, this is a must-watch video.

We sent an inquiry to eBay today asking when it might make available the video of the eBay Open session on payments. 

You can read the email eBay sent inviting sellers to apply for the beta program in this blog post from earlier this month; note the invitation doesn't provide details about the program.

Comments (104) | Leave Comment | Permalink
Readers Comments

Perminate Link for eBay Bans PayPal in Early Payments Beta   eBay Bans PayPal in Early Payments Beta

by: Carol Is Here This user has validated their user name.

Mon Jul 30 23:01:32 2018

If their payment processor will have a department of lawyers lol to deal with the credit card chargebacks and the cc companies that allow their customers to steal, and help the sellers with this, they'll get support.

How about "insurance" that sellers who use their processor can buy that will auto cover chargebacks or even returns?

A new concept.

Perminate Link for eBay Bans PayPal in Early Payments Beta   eBay Bans PayPal in Early Payments Beta

This user has validated their user name. by: toolguy

Mon Jul 30 23:17:26 2018

I can't afford to wait 4 days for my money.

I will not pay postage out of my own pocket, my customers will be waiting 5 days for me to ship. . .

Perminate Link for eBay Bans PayPal in Early Payments Beta   eBay Bans PayPal in Early Payments Beta

by: pace306 This user has validated their user name.

Tue Jul 31 00:01:57 2018

Well ........

eBay starts off by screwing sellers, it makes you wonder whats NEXT.

Lord knows Im NOT defending eBay (with the Paypal exclusion issue) - my guess would be

A) sore feelings means that Paypal doesnt want to stop and deal with APIs etc now - they may want to do it at their leisure (as apposed to doing it on eBays rushed schedule)

B) eBays crappy programmers arent ready with software to interface with Paypal

C) Paypal is getting revenge for eBays bad behavior(s) by dragging their feet on it all

They may also want D) to see what eBay can accomplish on its own aka will they come running back after it all implodes aka "show me what you can do with out us" ... but who knows.

Sellerhub is an unmitigated disaster because the info is wrong and the layout and options are UNhelpful.

Sellerhub wasnt written for sellers - it was written so that sellers would input data and eBay would data mine it all and use it/sell it  (whats being sold, who's selling it, what things are being sold for - that kind of thing). You ALWAYS have to remember that eBay is not your friend, your partner, your buddy, they dont care about you, dont advocate for you, and that your stray cat (the tabby with mange) who refuses to use the litterbox is STILL smarter then Devin the Devil Wenig on any given day.

https://www.youtube.com/watch?v=YSnkBJmQ4gw - says that they DEVIL told them that anyone who doesnt use eBays returns program should expect eBay to give them %35-40 less sales - switch it off and eBay will get even with you .... how nice of "the venue" !  not.

https://www.youtube.com/watch?v=0Kp0Yo6fm7U - Mohan the Dope says "ALL glitches are fixed" (see his comment at 6:15) - is it that DOPE is legal in CA? Is he just a baffoon? (Note that Mohan (Dont mess with the Mohan????) has no ecommerce experience EITHER - yet hes out making videos on buyer/seller experiences) (Mohan earned both bachelor and master degrees in Computer Science from New Jersey Institute of Technology and R.V. College of Engineering in Bangalore, respectively, and holds four patents.

Mohan is a huge believer in mentorship and a champion of eBay’s diversity and inclusion initiative.

UGH - can someone PLEASE buy him a degree is something ECOMMERCE RELATED?

At 6:31 the dope says "HE works for the sellers" LMFAO

lord help us all this holiday selling season

Perminate Link for eBay Bans PayPal in Early Payments Beta   eBay Bans PayPal in Early Payments Beta

This user has validated their user name. by: Bill

Tue Jul 31 00:18:58 2018

No one in their right mind would opt into this, it is just ludicrous.
The payment deal is going to be a flop before it even gets started.

Wenig has to be on drugs or something (I still say he has Charlie Manson eyes) to allow this to happen.

Another death knell for eBay.

eBay = Dead Man Walking

Perminate Link for eBay Bans PayPal in Early Payments Beta   eBay Bans PayPal in Early Payments Beta

This user has validated their user name. by: Ming the Merciless

Tue Jul 31 01:30:32 2018

Now we know why Devin has to have personal security.

What a vindictive, truly evil piece of pond scum.  

Perminate Link for eBay Bans PayPal in Early Payments Beta   eBay Bans PayPal in Early Payments Beta

by: OnlyPollyPocket This user has validated their user name.

Tue Jul 31 02:11:58 2018

Just watched Bexa Boss Lady's video.  She did an excellent job of outlining the hew payment system based on what she heard.

What I take away from her video is that ebay is, yet again, rolling out something that just isn't ready !  When she outlined what was happening in the beta, she kept using the words ''at first'' meaning, for example, Paypal will not be an accepted payment choice AT FIRST.

******************************

Speaking of which, I can see not accepting Paypal as a HUGE detriment to our businesses.  I foresee a lot of UPI because buyers will commit to buy and then realize that they cannot use Paypal.  

Also, those who do realize up front that Paypal is not accepted will go to sellers who can accept it because they didn't opt in OR, more importantly, just not buy on ebay.

I sure hope that any seller considering opting in will get all the details before doing it.  The ''new'' ebay payment system might be better in the future but, again, it just doesn't sound like it is ready to roll out yet!

Perminate Link for eBay Bans PayPal in Early Payments Beta   eBay Bans PayPal in Early Payments Beta

by: wilburnet This user has validated their user name.

Tue Jul 31 03:45:59 2018

No Paypal = buyer / seller nightmare.  Just watch as Ebay will have many many abandoned carts when people realise Paypal isnt a payment option.

Perminate Link for eBay Bans PayPal in Early Payments Beta   eBay Bans PayPal in Early Payments Beta

This user has validated their user name. by: Rexford

Tue Jul 31 06:31:26 2018

Toolguy says "My sales are down 40% over the last 3 months."

Quite some time ago, when many of us had been hit hard with poor sales due to all of eBay's shananigans, and you hadn't, we told you that it could happen to you too.

Believe us now?

Perminate Link for eBay Bans PayPal in Early Payments Beta   eBay Bans PayPal in Early Payments Beta

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

Tue Jul 31 06:52:54 2018

This is going to force buyers to use their credit card numbers which Ebay currently does not see.  But now this will allow Ebay to harvest even more information from the buyers this time.  Although they are not supposed to store the credit card numbers on their system we all know that Ebay is going to do this and will more than likely sell that information to the Chinese so now they will have additional information to use.

Suddenly Ebay buyers will start seeing charges that they never charged from other companies and all the roads will lead back to Ebay who will of course say they were hacked and then Fisher who we already know is useless but was put in charge of the payment systems will probably be the fall guy for Wenig to manage to pull another 3 months of employment from a job that should have ended with the last Shareholders Meeting.  

Buyers will start exiting Ebay even faster than the Sellers have been and Wenigs fast talking about Ebay servicing 500 million buyers will be floating out the door with Wenig riding on the wings of one of those Unicorns that he is dreaming of.  Any seller who signs up for this early opt in beta test is an absolute fool and any buyer who enters their credit card information to make a purchase on Ebay not using Paypals secure network is also a fool and just asking to be ripped off by Ebay.  

Ebay no longer cares whether it is buyer or seller they steal the money from as they now just need to show growth one way or another or the CEO is not going to get that nice cushy bonus he is counting on.  If he reduces sellers sales by 45-50% because they will not offer FREE RETURNS then all he is going to do is reduce the sales also because Sellers will continue to move their products to other sites and contact their buyers to let them know where they are now selling their goods.  Wenig is so vindictive and upset that Sellers know more about business and how a business should run than he does is going to cut off his nose to spite his face.  All that is going to do is show Wall Street just what a fool they have been following these last 3 years.

Any seller that is not already sending information with their packages keeping their buyers informed as to what other sites they should look at for the sellers goods at lower prices is wasting a great opportunity.  That is exactly what Target, Best Buy, Walmart and those large book companies have been doing to the past 2-3 years while Ebay just hands them the keys to the front and back door.  This is why Target could afford to leave Ebay so abruptly - they already had all the good buyers moved and realized that any others that were still looking at Target were not the quality of customers they wanted.

Perminate Link for eBay Bans PayPal in Early Payments Beta   eBay Bans PayPal in Early Payments Beta

This user has validated their user name. by: Rexford

Tue Jul 31 08:44:39 2018

The straw that breaks the camel's back for me may very well be the banning of third party listing sites.

Sending a note to the one that I use today to see what they know, but this may be it for me.  I've take a lot from eBay over the years, and I have adapted, but this may be it.

Perminate Link for eBay Bans PayPal in Early Payments Beta   eBay Bans PayPal in Early Payments Beta

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

Tue Jul 31 10:08:29 2018

@Rexford

I think that somebody hit the nail on the head earlier.  All  of these conditions seem to be aimed at the Beta Test period only, as of now.  I am starting to think that the program is no where near ready to use and this is how they force it to be usable.  I know that Seller Hub has a lot of issues but there should not be any problems with using a 3rd party listing tool for Ebay to manage to be the payment intermediary.  Maybe this is their way of not having any outside issues mucking up the plans for them so they can see if their program actually works.  

If that is not the case and Wenig just wants to dictate more micromanagement policies for us to adapt to our businesses he is  dooming Ebays platform to die a slow painful death because there is no way that any decent size business can function using Sellers Hub and listing their items 1 at a time and watching the circle of death just keep spinning on the screen while the program continues to do nothing. I can not imagine having to click on relist each item or sell similar to list my items each month.  That would be a total and complete disaster.  

I really feel sorry for those sellers who opted in thinking that Ebay would have their backs and now are finding out like everybody else that the only back that Ebay tries to have is Wenigs.  No wonder he needs to fly on the corporate jet and have a private security team.  I wonder how he will manage to afford that once he is no longer collecting all that unearned bonus money each year??  Heaven knows he will still need the protection after having put so many sellers out of business.

Perminate Link for eBay Bans PayPal in Early Payments Beta   eBay Bans PayPal in Early Payments Beta

by: pace306 This user has validated their user name.

Tue Jul 31 10:21:27 2018

I dont think we should let an eBay trial get everyone so crazy.

eBay has no choice after the trials to allow Paypal usage - I cant see how they would ban it forever.

ALL eBay trials are fraught with danger - as eBay trying things is like giving a 4 yr old a live grenade to play with and expecting "nothing bad to happen".

If you can "afford it", NEVER volunteer to be an eBay guinea pig, NEVER.

It seems the tail winds are catching up with eBay ...

"The company reported fiscal second-quarter gross revenues of $2.64 billion, which missed the Zacks Consensus Estimate of $2.66 billion. Furthermore, eBay guided for 2018 revenue of $10.75 billion to $10.85 billion, significantly below the consensus estimate of $10.95 billion.

It seems as if the poor results couldn’t have come at a worse time, as competition is continuously heating up in the e-commerce space, and eBay seems to be falling behind. Since eBay mainly operates as an online marketplace, nearly any retailer, particularly ones with online shopping platforms, can be considered competition. For instance, retail behemoth Walmart (WMT - Free Report) recently partnered with Microsoft (MSFT - Free Report) to boost its e-commerce platform.

One of the factors bringing eBay down is poor reception to its new initiatives. The company’s aim was to revamp the brand through structured data, AI, and product-based experiences. However, analysts from Raymond James stated that these initiatives are “ramping slower than expected.”  In a space where digital innovation is key, eBay can’t afford to miss on advancements.

To go along with the struggles eBay is experiencing with its main marketplace, the company’s adjacent ticket platform, StubHub, has also contributed to the downfall of the stock. On a call with analysts Wednesday evening, CEO Devin Wenig described it as a “tough landscape” for sports and that showed as revenue growth slowed to 5% in Q2 from 12% in Q1.


Although we can only speculate, it would be interesting to see where eBay would be if it never spun off Paypal(PYPL - Free Report) in 2015 and instead kept the payment service platform. While eBay’s decision to narrow its focus on just being a marketplace hasn’t been too favorable, PayPal has performed strongly since it began trading as its own independent company.


DUH - we all told you so!

Perminate Link for eBay Bans PayPal in Early Payments Beta   eBay Bans PayPal in Early Payments Beta

by: maxmad This user has validated their user name.

Tue Jul 31 10:35:21 2018

I agree it's just a beta test / trial, but for the sellers who Opted In, , that now can't opt out, I'm not sure how many could actually last in business thru this, most buyers use Paypal, plus all the glitch's ebay will inject in, will for sure be a recipe for disaster

ebay will force it on to sellers, when they can't find enough suckers for their testing Sellers be warned DO NOT OPT IN TO THIS BETA TEST NIGHTMARE, ON YOUR OWN.

Perminate Link for eBay Bans PayPal in Early Payments Beta   eBay Bans PayPal in Early Payments Beta

by: pace306 This user has validated their user name.

Tue Jul 31 11:21:41 2018

Max - question please - one that no one is asking (though I have in the past)  ..... since theres no Paypal - it would seem that ONLY eBay does the customer service on it.

Alot of times, Paypal (as bad as it is) is more sympathetic to sellers then eBay (%99.9 against sellers)....

So is that part (at least) a foreshadowing of whats to come?

The rumblings Ive heard is exactly that - that Paypal is far to soft on sellers - having eBay ONLY do the chargebacks, the INRs, the SNADs etc  makes it so that eBay can be %99.99999999999999999 against them.

Thats what Ive always been worried about - eBay cant be trusted to handle a sellers business in a serious and respectful manner - eBay being the merchant of record ... can do as it pleases and just hand off the losses to sellers at their whim.

Perminate Link for eBay Bans PayPal in Early Payments Beta   eBay Bans PayPal in Early Payments Beta

This user has validated their user name. by: iheartjacksparrow

Tue Jul 31 11:41:05 2018

pace306 writes: "eBay being the merchant of record ... can do as it pleases and just hand off the losses to sellers at their whim."

That's what I've wondered about since the first announcement. Scenario: Seller gets paid and ships; buyer claims SNAD; and eBay goes back into the seller's account to refund the original cost, the original shipping, and return shipping, without any warning to the seller. Because you know they are almost always going to find in favor of the buyer, leaving the seller vulnerable to overdrafts. And eBay is way too cheap to set up any sort of system that would allow a seller to show evidence and plead his case.

Perminate Link for eBay Bans PayPal in Early Payments Beta   eBay Bans PayPal in Early Payments Beta

by: DoNotWantEbayToKnow This user has validated their user name.

Tue Jul 31 11:44:11 2018

@Silver Ice King, where are you getting the information that eBay won't allow 3rd party tools?

Perminate Link for eBay Bans PayPal in Early Payments Beta   eBay Bans PayPal in Early Payments Beta

This user has validated their user name. by: The End

Tue Jul 31 11:52:49 2018

PayPal gone....GOOD.
Ebay becomes the "gateway"  between me and my bank......GOOD.
Billing fees once a month WITH the option to put that expense on my credit card.....GOOD.
After testing, PayPal still an option.......BAD.
Looks like after 10 years gone, I STILL won't be returning.....BAD.
Pretty soon I'll be too old to give a rip.

Perminate Link for eBay Bans PayPal in Early Payments Beta   eBay Bans PayPal in Early Payments Beta

This user has validated their user name. by: toolguy

Tue Jul 31 12:11:26 2018

eBay is being groomed to be bought by Apple

Apple needs to start making more acquisitions if they intend on staying bigger then Amazon!

Apple should buy eBay, Fedex & Tesla

Perminate Link for eBay Bans PayPal in Early Payments Beta   eBay Bans PayPal in Early Payments Beta

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

Tue Jul 31 12:35:16 2018

@Donotwantebaytoknow

I actually watched that entire video and the seller states that Ebay said that at least at first (which I am taking to mean during the Beta Testing or until they manage to fix all the problems) that no 3rd party listing tools would be allowed to be used.  i had already read that all Sellers that opt in will be forced to convert to Sellers Hub and that payments would be delayed  from 2-4 days, which I also knew from all my years working in the credit card processing industry.  When you use batch processing their is no other way to operate as a payment intermediary.

Perminate Link for eBay Bans PayPal in Early Payments Beta   eBay Bans PayPal in Early Payments Beta

This user has validated their user name. by: Lightning

Tue Jul 31 12:39:57 2018

I interpreted the ''3rd party tools'' reference to be only those that interfaced with payments and related areas, such as accounting tools and shipping tools.  This announcement is all about payments, the back end of a business, so there would seem to be no involvement of other phases of operation such as listing through Auctiva, etc.  

If you opt in to the beta payment manager, I think you have to use eBay Shipping to make your labels, so that might eliminate tools like Stamps.com or Auctiva Shipping.  The video mentioned the use of GoDaddy accounting, so that would be blocked off.  

But I don't think there is any threat to listing tools like Auctiva since that doesn't interfere in any way with eBay's payment system.  Nor is it something that eBay would see as a lost revenue opportunity and want to take its place.  

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