eBay sellers are being hit with hefty bank fees for non-sufficient funds (NSF) due to a glitch, and the company's failure to inform sellers is mystifying.
When charging for postage through eBay shipping labels, rather than pulling from sellers' PayPal balances, eBay/PayPal is pulling funds from the sellers' backup funding sources instead.
Some sellers use credit cards for their backup funding, but many use bank accounts. There was no indication of the funding change when printing labels on eBay to give sellers a clue the problem was occurring.
Sellers are coming to the boards to say they discovered they had been accruing fees as high as $30 a pop each time PayPal attempted to withdraw funds from their bank account. Since they had the funds in their PayPal account, it came as a surprise.
"So far, no official announcement from PayPal or eBay that this happening, but there is a discussion on the eBay boards now," one reader told EcommerceBytes, explaining that it happened to their account yesterday.
The problem, which began as early as April 3rd, has yet to be resolved - "PayPal is charging shipping labels to my bank account instead of to my PayPal account as normal," a reader reported today on Ecommerce EKG
. "Finally got through to PayPal and they said charging the labels to my bank account instead of my PayPal balance is a "known Issue". They also said may be fixed by the end of the week?!?!?"
"I now have $200+ worth of overdraft fees," wrote one seller
on the eBay boards today. When contacted by sellers who discover the problem, some eBay reps are telling sellers to bring their packages to the post office until the problem is fixed.
One reader told us they were able to cancel the third-party authorization in PayPal (to eBay shipping) then reinstate it with the next printed label in order to get it to go back to using the PayPal balance for payment - despite that, we saw no indication that eBay was providing that as a possible workaround.
Discussion threads are noticeably absent any comments from eBay moderators acknowledging or addressing the problem.
In Wednesday's chat session, however, a seller reported the problem
. The response from an eBay moderator: "We don't have any updates just yet on this issue but it is currently being investigated. Be on the lookout for updates!"
Sellers who are describing the problem on the eBay discussion boards say they are wondering who is responsible for the bank fees eBay has cost them.
With no announcement from eBay about the problem even as of today, some sellers may be in for quite the unpleasant surprise if they continue to use eBay to print shipping labels for their orders.