Ina Steiner EcommerceBytes Blog
News and insight focusing on ecommerce.
by Ina Steiner, Editor of EcommerceBytes.com
Thu Apr 6 2017 16:21:04

eBay Fails to Warn Sellers of Costly Glitch

By: Ina Steiner

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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!"

The Systems Announcement board where eBay reports glitches also lacks any warning of the costly problem with shipping labels.

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.




Comments (50) | Leave Comment | Permalink

Readers Comments

Perminate Link for eBay Fails to Warn Sellers of Costly Glitch   eBay Fails to Warn Sellers of Costly Glitch

This user has validated their user name. by: iheartjacksparrow

Thu Apr 6 16:47:59 2017

eBay better be ready to reimburse the sellers who are affected by this issue. Oh, wait! It's just the cost of doing business on eBay.

Perminate Link for eBay Fails to Warn Sellers of Costly Glitch   eBay Fails to Warn Sellers of Costly Glitch

by: pace306 This user has validated their user name.

Thu Apr 6 16:59:50 2017

I found out about this issue this morning, and Paypal gave me quite a runaround.

They debited by bank account AND took it out of my Paypal balance@

They blamed eBay and said it was the eBay/USPS shipping agreement thats been causing the issues.

Quite frankly - I dont believe them.

If you look at your Paypal screen - under transactions - they never show you a running balance - just debits and charges - so theres no way to know what they are doing.

They pulled my eBay/USPS shipping agreement as mentioned above - but thats not going to put the mone back in the back now is it?

AGAIN - another eBay/Paypal glitch that SOMEHOW steals money from sellers and gives it to eBay - how convenient!

They added my account to the "open ticket" and told me "not to worry".


Try doing this crap ON eBay (taking 2x for something) and see where it gets you.

The emperor has no new clothes - and "I've seen this one befire - its where eBay steals from sellers and doesnt get in trouble".

BTW -  the reason none of these things ever show up on the announcement boards id to show people (Wall Street) that they perform FLAWLESSLY.

eBay was just given a BUY rating on some stock sites - not because they have great returns on their stock (they dont) but because in "this age of political infighting and issues) eBay is a SAFE, SLOW stock ...


safe like my grannys driving?

Amazons stock is headed to $1000 a share with Bezos being the second? third? richest man ... well at least we know DW is the stupidest!

Perminate Link for eBay Fails to Warn Sellers of Costly Glitch   eBay Fails to Warn Sellers of Costly Glitch

by: 27tcle This user has validated their user name.

Thu Apr 6 17:08:15 2017

So the heist has begun. Glitch my A@@, they are wanting to make sure they can get into sellers bank accounts and clean them out. Let's see who they blame, N Korea or the Russians... We all know the TRUTH though. Smoke 'em if you got 'em!

Perminate Link for eBay Fails to Warn Sellers of Costly Glitch   eBay Fails to Warn Sellers of Costly Glitch

by: DingDong This user has validated their user name.

Thu Apr 6 18:25:25 2017

I notice this problem about a month ago. It caught my eye and then my credit card bill came with these charges, which confirmed what I was seeing.

I tried to see if I could reset the default to Paypal balance first and there is no place for this. BUT, you read in payments is that they will take funds from your Paypal balance first and then the second choice of payment. It hasn't done this for a month.

It's such a habit of hitting payment thinking it is coming out of my Paypal account and here I find it on my charge card. (It would be worse if they were taking it out of my bank account. There is a minimum balance and you fall below, there is a $30 penalty.

PAYPAL: Get it fixed!

Perminate Link for eBay Fails to Warn Sellers of Costly Glitch   eBay Fails to Warn Sellers of Costly Glitch

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

Thu Apr 6 19:27:46 2017

My ebay backup payment method is the PayPal debit card. So far, my ebay shipping charges are billed directly to PayPal with no duplications to the PayPal card.

Ebafia will NEVER get my bank account number. NEVER.  

Perminate Link for eBay Fails to Warn Sellers of Costly Glitch   eBay Fails to Warn Sellers of Costly Glitch

This user has validated their user name. by: Ric

Thu Apr 6 20:52:32 2017

Suggestion to effected sellers...

Process your shipping labels through PayPal instead of through eBay.  I just ran three different labels for this evenings sales and they were all paid from the PP account.

Also, by processing through PayPal, you are denying eBay the commission they make when labels are processed through them.

The only labels I print through eBay are Priority Mail since I save a few cents due to eBay offering a lower label cost for Priority than PayPal does.

Perminate Link for eBay Fails to Warn Sellers of Costly Glitch   eBay Fails to Warn Sellers of Costly Glitch

by: DingDong This user has validated their user name.

Thu Apr 6 23:23:51 2017

Ric
I print my labels on Paypal and the default is not the PayPal balance like it is suppose to be. I have to change the payment to take it from my Paypal account.

Perminate Link for eBay Fails to Warn Sellers of Costly Glitch   eBay Fails to Warn Sellers of Costly Glitch

This user has validated their user name. by: toolguy

Fri Apr 7 00:45:43 2017

This problem started for us late on the 3rd.

We are lucky we had funds in our checking account to cover the shipping charges.

As of tonight it seems that the problem has been fixed as tonight's shipping labels came from our paypal balance as it should.

Perminate Link for eBay Fails to Warn Sellers of Costly Glitch   eBay Fails to Warn Sellers of Costly Glitch

This user has validated their user name. by: Rexford

Fri Apr 7 07:15:38 2017

Thankfully we dodged the bullet on this one, but they have switched our settings in the past so I am fully aware of the frustrations.

I love the way these two companies point the blame at each other since they separated.  And I don't remember PayPal having the number of glitches that it has before Donahoe got over there. Perhaps that is purely coincidence but it's a fact.  I guess having an albatross carcass hanging from their neck is just plain bad luck.  

Perminate Link for eBay Fails to Warn Sellers of Costly Glitch   eBay Fails to Warn Sellers of Costly Glitch

by: FeelingFroggy This user has validated their user name.

Fri Apr 7 08:27:17 2017

Why do people insist on using Fleecebag or Preypal for shipping.

When you sleep with the snakes don't whine when you get bitten.

Past history has shown neither of these sites care about you and any money lost is the cost of doing business for you.

Perminate Link for eBay Fails to Warn Sellers of Costly Glitch   eBay Fails to Warn Sellers of Costly Glitch

by: Volvo351 This user has validated their user name.

Fri Apr 7 09:37:27 2017

Gee, you think The Hoe will make his victims..er, I mean 'paying customers' Whole for this fork up? Yeah, and monkeys will fly out of Bart's butt, too!

Perminate Link for eBay Fails to Warn Sellers of Costly Glitch   eBay Fails to Warn Sellers of Costly Glitch

by: RL15 This user has validated their user name.

Fri Apr 7 09:55:47 2017


never used fleecebay or paypig shipping.

the free stamps.com account works with no issues at all.

Perminate Link for eBay Fails to Warn Sellers of Costly Glitch   eBay Fails to Warn Sellers of Costly Glitch

by: smallstuff This user has validated their user name.

Fri Apr 7 11:37:29 2017

I just checked and this has NOT been happening to me. It is inevitable that things like this will happen from time to time, so it is a good idea to keep some funds in your PayPal account and some in the linked bank account.  I don't understand how sellers can operate with zero bank balances.  As for which is better, eBay or PayPal shipping - eBay gives me a bigger discount so I will use them most of the time for eBay sales.

Perminate Link for eBay Fails to Warn Sellers of Costly Glitch   eBay Fails to Warn Sellers of Costly Glitch

by: dans parts This user has validated their user name.

Fri Apr 7 12:35:11 2017

@pace306 & @rexford are right about the point that they bring up - eBay and PayPal are now evading responsibilities by pointing fingers at each other.

I've had 3 serious problems with items in the last 2-3 weeks (bad addresses, canceling orders, disruptive bidding, etc), and each time the result was a "non"-resolution of my problem because  each one blamed the other.

Wish PayPal was still technically part of eBay, not just literally.  At least I could still get the opposite sides parties to talk to each other.  Now they won't even talk to each other on the phone, most of the time.

One of the problems I had was a voided label tracking number that I deleted, but kept re-appearing each day, and again showing as shipped after deleting the shipping date as well.  eBay told me that didn't happen (or rather that I must not have deleted it), when the rep watched me do it in real-time the 2nd time.

Good recipe for increased blood pressure during a phone call when the people who are supposed to help you, instead insist that you are wrong, and it did not happen like that.

Oh, how I wish there was somewhere else to go to sell my stuff (there isn't).

Perminate Link for eBay Fails to Warn Sellers of Costly Glitch   eBay Fails to Warn Sellers of Costly Glitch

by: JQ This user has validated their user name.

Fri Apr 7 14:21:58 2017

Last year a very similar "glitch" hit me. Paypal withdrew money out of my bank account when I used "Paypal Credit" to buy an item. I called the next day and explained that money was for my rent and bills. It took 45 minutes of my refusing to accept their non-responses before I finally was able to speak with a supervisor. I was told the same thing, this was a known glitch effected a small number of users and that they were working on fixing it. He told me he could refund the money to my bank account but it would take three days. As compensation he refunded the money withdrawn and did not add  the charges to my Credit account. That was appreciated, but not at all worth the time I wasted on the phone. I told him that I would not be using Paypal Credit in the future and that if Paypal wants to act like a bank they need to do better than getting transactions correct "almost always." He had obviously heard this complaint in the past and agreed the situation was unacceptable.

Perminate Link for eBay Fails to Warn Sellers of Costly Glitch   eBay Fails to Warn Sellers of Costly Glitch

by: pace306 This user has validated their user name.

Fri Apr 7 15:15:45 2017

Im "still" involved in this (though Im not the OP here).

I just tried to print a label via eBay shipping and it doesnt even work .. at all.

Because the BRAINIACS at Paypal cancelled the billing agreement between themselves and eBay for my account - even though I "reup" and "reagree" (to all the evil things they want from you) ... it STILL doesnt work.

Something in the computer software back end between the 2 companies is FUBAR.

eBays poor excuses about not announcing/fixing it ASAP, holds no water, and the morons at Paypal dont know either.

All the cheerleaders here keep telling me how great these 2 companies are, how much money they make, how their stock (adjusted for 1929 metrics) is STILL a great investment ... cant get a simple payment matrix to work.

BTW - using Paypal to print costs more then using eBay if you get the TRS discounts ... more money for them, less for sellers.

Its no wonder Amazon is kicking their butts and taking names ...  

Perminate Link for eBay Fails to Warn Sellers of Costly Glitch   eBay Fails to Warn Sellers of Costly Glitch

by: funkygrrl This user has validated their user name.

Fri Apr 7 15:39:53 2017

Thanks Ming - going to use our Paypal debit card as backup too. Great idea.

Perminate Link for eBay Fails to Warn Sellers of Costly Glitch   eBay Fails to Warn Sellers of Costly Glitch

by: exdwh This user has validated their user name.

Fri Apr 7 15:51:29 2017

This is why I never keep active PayPal 'billing agreements' for any vendor. You can never be sure of the funding source.

If I'm forced to use one (e.g. GoDaddy), then I cancel the agreement right after the purchase.

You don't need to take your packages to the post office for postage or use PayPal labels-- just cancel the billing agreement.

I print eBay labels, but I log into my buying PayPal account for each label. I don't want to use any balance in my selling PayPal account. I want to earn points on my business credit card.

Sometimes 'convenience' has a price.

--David

Perminate Link for eBay Fails to Warn Sellers of Costly Glitch   eBay Fails to Warn Sellers of Costly Glitch

by: Ozzie73 This user has validated their user name.

Fri Apr 7 17:18:49 2017

This happened to me a month ago and totally caught me off guard. I have a bill paying account linked and I keep money in there strictly for bills. They hit me with my eBay fees and then a couple postal charges and helped run up $105 in overdraft fees. I got a hold of PayPal and complained about this. First they told me they would send me a bank letter I would be able to show my bank to get the fees reversed. Well said letter made me out to look like a fool and it was all my fault for accidentally setting up the wrong backup source. I wasn't having it and called back. I had screenshots of everything and let them know that I would be filing a complaint elsewhere. They credited my account with the amount of the fees they made me incur and said the problem was fixed. Low and behold, it happened again a couple days back. This time after I got off the phone with the supervisor telling me they would get it taken care of and get me the money back, I received a message through PayPal stating that they would not refund the fees they had cost me again. I called back and they still said no as last month was a 'courtesy. Both last month and this month I was told this is a known issue and they have it fixed. $35 isn't a lot of money, but this is now about principle now. They lied and now contemplating BBB, Attorney General, and letting my bank know these charges are unauthorized as PayPal funds are supposed to be my primary payment source, which the account shows they were hit too. Am I overreacting? Sorry about the rant.

Perminate Link for eBay Fails to Warn Sellers of Costly Glitch   eBay Fails to Warn Sellers of Costly Glitch

by: Ozzie73 This user has validated their user name.

Fri Apr 7 17:22:06 2017

Please excuse the grammar mistakes above...my phone screen isn't that big to see everything that was already typed...lol

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