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: RL15 This user has validated their user name.

Wed Aug 1 19:05:45 2018


today, august 1st... fleacebay stock hits a 52 week low.


way to go fleacebay!!

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.

Wed Aug 1 19:30:52 2018

@Tool

They figure that you will pay them when they sick the collection agencies and attorney's on you.

But the reason they are not taking the money out is they do not have the program ready to all sellers to reconcile the amounts and tie things together.  If they take their fees out up front they have to be able to supply you with the documents that show you got what you were supposed to and they don't want all the phone calls complaining because its short.  

Also they still cannot give me an accurate monthly Sales report that I can count on for tax purposes or any purposes month in and month out.  How are they going to ever prepare an accurate report showing what they took out of each payment??

I bet they will not consider that a cost of doing business as there are never supposed to be any costs to Ebay, only  the sellers.

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.

Wed Aug 1 19:46:17 2018

@toolguy


Your talking crazy talk, the world doesn't revolve around crap ebay,


Start up your website again, accept Paypal and with half the money you save in FVF on Shipping use it to advertise your site,


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

Wed Aug 1 21:02:32 2018

@ Silver Ice King

"@Tool

They figure that you will pay them when they sick the collection agencies and attorney's on you."

No biggie, I stiffed Bank of America in 2010 for $33,000 in credit card debt.
That same year I stiffed Chase for $19,000

I have collectors calling me all the time!

They can't take what I don't have!

They didn't want to work with me when I had money, now they'll never get a single cent. . .

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

Wed Aug 1 21:04:56 2018

@Maxmad

I might start up my website again.

I still have my domain z50.com

Godaddy offered me $2800 for it, but in my mind it's worth 10x that being you can't get 3 digit domains anymore. . .

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

by: Mark4 This user has validated their user name.

Wed Aug 1 21:14:52 2018

ebay lost over 2000 of our listings photos last month due to a "corruption issue" with their picture server. Finally the ebay CS we were talking to admitted they had been hacked. And now we are suppose to trust ebay as a payment processor??  Give me a break, we are out.   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: The End

Wed Aug 1 21:29:35 2018

@ iheartjacksparrow ;
Very Nice  :o)
Is the site still active ?

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

Thu Aug 2 00:01:07 2018

Why are they foisting a Beta out that from what I am reading is full of kinks. These should have been taken care of in the Alpha in the sand box.

Are these people stupid?

The answer is: YES they are.

eBay = Dead Man Walking

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

by: deejae137 This user has validated their user name.

Thu Aug 2 01:05:45 2018

Love this line "Ebay cant even secure pictures yet they want to process sensitive information payments."  Furthermore, eBay can even take care of the photos in my listings, yet eBay wants me to trust them with my money and to distribute my money to me in a time efficient manner???  EBay places themselves between me and my buyer and I see how wonderful that is .....NOT.  EBay now wants to place themselves between me, my money and the buyer.....oh, heck no!!!  I have been winding my business down over the last 3 months and will be gone by December.  At one time (before Donahoe took over the CEO position), I spent as much as $7,000 a month buying on eBay (not to mention what I was selling).....now, eBay is lucky to see $70 a year in purchases.  By the end of December, my purchases will be ZERO and my seller invoice will be ZERO.  We are not a dime a dozen....nor are we replaceable.  Loyalty was something, now there is no loyalty, only loathing!!

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

by: mcposty This user has validated their user name.

Thu Aug 2 03:49:51 2018

I hope these marketplaces fall hard.

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.

Thu Aug 2 06:07:50 2018

@Toolguy

No biggie, I stiffed Bank of America in 2010 for $33,000 in credit card debt.
That same year I stiffed Chase for $19,000

How many years In the US does debt like this come off your credit file/ report ? I done something similar before and in the UK the debt is wiped after 6 years. The company i had the debt with called after the 6 years and i happily told them i cant be chased no more the 6 years have passed.

Also, are you really not going to ship out that $40k worth of stock ?

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

by: Chicago48 This user has validated their user name.

Thu Aug 2 07:04:36 2018

People need not get upset about the "beta" testing.  This happens all the time across the internet.  And I believe there are some sites that give you the option to try "beta" testing (ex: emails), but make it hard to go back to classic.
I don't see a problem with this provision.  Just DO NOT OPT IN!

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

by: uppercutknives This user has validated their user name.

Thu Aug 2 09:26:11 2018

Ebay is putting the final pegs in its coffin. I left ebay last month after 20 years selling. Now I'm glad I did. This is a mess and is getting worse.  I don't even shop on ebay anymore. Its straight off to Amazon with my dollars.

Folks get out now while you still have the shirt on your back. Ebay wants that too.

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

by: Whatever This user has validated their user name.

Thu Aug 2 10:09:17 2018

I wish we could post those cute little pictures here - mine would be snoopy doing the happy dance

I'm quite happy about all this - I've been working my little hiney off and have my inventory up to 2,000 items in just a couple of months on my own website. My ebay fees are under $100 now compared to $500 a month a few months ago and all those buyers that ebay will be driving away will hopefully show up on my own venue now - thank you idiots at ebay.

enough said

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

by: Whatever This user has validated their user name.

Thu Aug 2 10:11:36 2018

Chicago - I don't think it's so much about not being able to opt out for most - I think it's about ebay's lack of disclosure - the sneaky way they are baiting folks into it if their stupid enough to fall for it.

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

by: abfab This user has validated their user name.

Thu Aug 2 12:07:54 2018

@Silver Ice King
@Lightning

Hi, I am more panicked about the 3rd Party listing comments. The video mentioned ''3rd Party accounting/financial tools.'' I don't use any separate accounting programs, but I do rely on my 3rd Party ''listing'' vendor, Auction Wizard 2000, to do all of my listings to eBay. Using it since 2001. It will kill me to not be able to use it. I have over 15K auction lots all prepared for when I want to list including my pix, script, etc. Not being able to use it would be devastating to me even though I am a very small seller.

I did contact my vendor who said he went to the eBay developer site and sees no mention of the above and is checking into it. My reply to him: not surprised since eBay has no transparency and no early notifications of changes to come. Will report back here once he gets back to me. In fact, I would think if that ''no 3rd Party listing vendors'' is true, he would be out of business.

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

by: eastwestphoto This user has validated their user name.

Thu Aug 2 12:14:18 2018

yeaks this is a heart attack from eBay, I dont like the terms and conditions.

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.

Thu Aug 2 13:09:09 2018

ebay will most likely kill 3rd Party listing companies, so they can provide the service themselves , expect a glitch based service at a higher price

to survive ebay will need to suck the sellers for every last dollar they have, sellers are going to be in for some seriously shocking fee increases, ebay is in financial trouble, and sellers are their only revenue.

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

by: HappyPicker This user has validated their user name.

Thu Aug 2 14:35:42 2018

@ abfab ... Thanks for contacting the vendor for Auction Wizard 2000. I've used the program since 1999 and can't imagine not using it!  I'll be watching for your reply.  

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.

Thu Aug 2 14:46:31 2018

@abfab

From what I have seen on another blog it appears that only the 3rd party backend transactions will be down at least for awhile.  Those that download the information into Quickbooks and things like that are going to lose that if they opted into the Beta Test that starts in September.

As usual Ebay has promised something that they cannot deliver on so they are going to put a product out that is below the standards that most would expect from a payment intermediary.  They are still using the offshore programmers from India and paying as little as possible for their programming and Judge Million says on The People Court in spanish but translates to ''The Cheap comes out Expensive'' and that is what is going to wind up happening to Ebay if they ever get it working at all.

If Ebays results for the 4th quarter are not exceptional and I do mean Exceptional I fully expect Wenig to be gone sooner rather than later.  I believe he has promised more than his cheap labor and yes men can deliver, ever.

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