Ina Steiner EcommerceBytes Blog
News and insight focusing on ecommerce.
by Ina Steiner, Editor of EcommerceBytes.com
Wed Mar 7 2018 21:45:15

eBay to Disburse Payments to Seller Bank Accounts

By: Ina Steiner

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eBay said you won't need a PayPal account to sell on its platform once it becomes a payments intermediary (in other words, buyers will pay eBay, not sellers), although buyers can continue to pay with PayPal if they wish. Instead, eBay will disburse all payments from buyers into sellers' bank accounts. 

A trio of eBay executives also said there's nothing sellers need to do right now. They were speaking at a webinar today held to answer questions about eBay's plans to become a "payments intermediary."

Scott Cutler, eBay SVP, Americas, said, "As it relates to disbursement, eBay will be disbursing the funds directly to sellers. And that's important because as we look at the journey that we want our customers to be on, eBay is going to play a central part in that relationship, that buying experience, and that selling experience, and that's what we're going to be on the journey for."

Alyssa Cutright, who joined eBay in 2016 as Vice President of Global Payments, also answered a question about disbursements.

Asked, "When and how can I get payments, where will I go to get paid," she responded:

"With eBay being at the center of your relationship in the future inclusive of payments, you will manage your funds through eBay. So you will have visibility to the funds and to proceeds of your sales. We strive to provide transparency about where those funds are along the process, and generally we will be moving those funds directly from eBay to your bank account.

"That is where we feel direct access to your funds is most beneficial to all of you as sellers. We will of course continue to explore other mechanisms that will allow you to have access to those funds beyond going directly to your bank account and welcome input on how you would like to access your funds. 

"But we know gaining access to those funds is really important. That's your working capital, that's how you run your business day to day. And we're going to make sure there is full transparency and that we are working to get those funds to you as expeditiously as possible."


Executive Bob Kupbens talked about predictable access to funds - "you know when your funds are going to be there, you know then what decisions you can make in your business to allow you to be successful. This is a journey that we're on together. We're working towards creating a single source of truth for you to manage your business, and include all the payments information, like making sure that as we talk to you about what's important, that we put that front and center, and on top of it is this greater opportunity for reach."

eBay is becoming a payments intermediary because its 5-year operating agreement with PayPal will end after the companies split in 2015. 

The executives talked a lot about "simplified" and "streamlined" experiences for buyers and sellers, and promised sellers greater insight into their business under the new experience that eBay will begin testing later this year. They also said that by offering payments that are preferred in local markets, such as Union Pay in China, "we believe that will drive more sales and higher conversions ultimately for all of you on our platform."

The reaction to today's webinar from sellers was disappointment at the lack of details, especially around fees.

One reader told us everything was generic. "I heard no specifics on fees, payment processing times, what fees will be withheld from sellers at the time of payment, will supporting tax reports be available, etc. I still have all the questions I had before the seminar."

Two sellers who attended the webinar reacted on Facebook. One came away believing eBay would do what they want to whether sellers like it or not. "All they did is go around in circles, not addressing the real issues that sellers have with this new program." Another wrote, "Webinar was not very informative..... we are in this together - and we will learn as we go."

Updated to correct Scott Cutler's title.




Comments (96) | Leave Comment | Permalink

Readers Comments

Perminate Link for eBay to Disburse Payments to Seller Bank Accounts   eBay to Disburse Payments to Seller Bank Accounts

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

Wed Mar 7 22:21:24 2018

"And all our yesterdays have lighted fools
The way to dusty death. Out, out, brief candle!
Life’s but a walking shadow, a poor player
That struts and frets his hour upon the stage
And then is heard no more. It is a tale
Told by an idiot, full of sound and fury,
Signifying nothing."

Perminate Link for eBay to Disburse Payments to Seller Bank Accounts   eBay to Disburse Payments to Seller Bank Accounts

by: Troy Stiffler This user has validated their user name.

Wed Mar 7 22:23:52 2018

I suspect they'll do like Amazon, and only batch out funds every two weeks. I'll also give them free reign to limit your account for falling ''Below Standard'' on your dashboard. I assume it'll also tighten up how refunds are secured (they'll force the money out of your balance, or force the money out of your connected credit card or checking account).

I know what it's like to operate a ''week to week'' kind of business. It's great to not be in that position. But it's a fact of life for many (most?) eBay businesses. If they do withhold funds, this is going to cause a lot of little sellers to collapse.

Like the ''business coaching'' talked about in the other blog post... Ebay is so out of touch with how small business operates. My best analogy for these Silicon Valley people is that they can spend and waste all the fantasy and free investor and stockholder money they want (see: Solyndra or Juicero). But these people handling billions of dollars probably couldn't profit from a laundromat or handyman operation if they needed it to survive. It's two different worlds.

I keep a directory of approximately 1000 competitors. I'm looking forward to the disruption. I know I can survive it, while it will cause serious difficulties for many competitors (if I were to call them that ... more like friendly competition). I use barcode #'s, EAN's, and follow eBay's suggestions rigorously. But most don't. Between all of those changes, the the payment system change, there are going to be a lot of home-based and small-business sellers hurting. If the effect is anything like the massive seller purges that started in 2011, it's going to be good for my little operation.

Perminate Link for eBay to Disburse Payments to Seller Bank Accounts   eBay to Disburse Payments to Seller Bank Accounts

by: futervest This user has validated their user name.

Wed Mar 7 22:29:23 2018

And just how long will eBay sit on your money collecting interest until they pay you. My guess would be at the soonest not until after the 14-day minimum return policy. or later.

Perminate Link for eBay to Disburse Payments to Seller Bank Accounts   eBay to Disburse Payments to Seller Bank Accounts

by: geoffreymason This user has validated their user name.

Wed Mar 7 22:44:31 2018

Get out while you can!

Perminate Link for eBay to Disburse Payments to Seller Bank Accounts   eBay to Disburse Payments to Seller Bank Accounts

This user has validated their user name. by: iheartjacksparrow

Wed Mar 7 23:04:19 2018

""With eBay being at the center of your relationship in the future..." What a scary thought.

Perminate Link for eBay to Disburse Payments to Seller Bank Accounts   eBay to Disburse Payments to Seller Bank Accounts

This user has validated their user name. by: RKTOYS

Wed Mar 7 23:23:01 2018

I have zero interest in giving eBay a bank account number, not after the fight to wrest control of such away from Scamazon.  So I'll lose half of my current sales, big deal, half of nothing is still nothing.  Just have to step my efforts elsewhere (live events, eCrater, the white whale unicorn that is my own site, and so on).

Perminate Link for eBay to Disburse Payments to Seller Bank Accounts   eBay to Disburse Payments to Seller Bank Accounts

by: justchangecarriers This user has validated their user name.

Thu Mar 8 00:22:59 2018

this is going to be a huge headache for business taxes. 2 1099s. Transactions on 2 different payment sources thatll need to be logged. Harder to go look into history of a transaction for refunds and returns. Paypal has clear indicators on it what happed to that transaction. Ebay has proved to me they are imbeciles when it comes to information that a business needs to do for reporting. I just have a feeling there is going to be info that I need that I wont have access too when I need it.

Perminate Link for eBay to Disburse Payments to Seller Bank Accounts   eBay to Disburse Payments to Seller Bank Accounts

by: fashionista This user has validated their user name.

Thu Mar 8 00:23:35 2018

I left amazon a long time ago, aside from ebay i sell on etsy and tradesy.  i think etsy manages payments well, auto deposit on mondays, but before 10 am you can chose to transfer same day.  So it's always in the bank within 3 days, tradesy holds funds for 4 days because of their return policy, all returns go to them, not the seller, then it transfers, but their processor takes 7-10 days.  So there's a big difference in processors.
we thought it couldn't get worse than pp,  

Perminate Link for eBay to Disburse Payments to Seller Bank Accounts   eBay to Disburse Payments to Seller Bank Accounts

by: justchangecarriers This user has validated their user name.

Thu Mar 8 00:24:35 2018

I will definitely be opening a new bank account for ebay payments to go to, and will be moving money weekly to a different bank. They are not going to have access to my main account.

Perminate Link for eBay to Disburse Payments to Seller Bank Accounts   eBay to Disburse Payments to Seller Bank Accounts

by: justchangecarriers This user has validated their user name.

Thu Mar 8 00:26:43 2018

This also really sucks that now I will have to wait for my funds to hit my bank to buy something with them or pay a bill. I was able to use them instantly with paypal. This whole thing is going to be so inconvenient.  

Perminate Link for eBay to Disburse Payments to Seller Bank Accounts   eBay to Disburse Payments to Seller Bank Accounts

by: justchangecarriers This user has validated their user name.

Thu Mar 8 00:31:32 2018

Trying to process this and how it will affect me, sorry for the multiple posts

How does it work for printing labels? I use the funds in my paypal account from the purchases to do that then I transfer the funds periodically when it gets to certain mark. So now I have to use my bank to buy labels? This is a huge headache. They are trying to change their whole website search functions, and trying to implement a whole new payment service from them at the same time. Ebay cant even run the glitchfest site they have right now. I have little faith this is going to go smoothly. They get hacked left and right and now they want access to more delicate personal information

Perminate Link for eBay to Disburse Payments to Seller Bank Accounts   eBay to Disburse Payments to Seller Bank Accounts

by: donald This user has validated their user name.

Thu Mar 8 00:32:05 2018




We need to continue to put our eggs in different baskets or one or both Goliath will put us out of business.  If any of you have not tried Walmart you should. Walmart has the potential to beat both eBay and Amazon or at least make them nervous. I have been selling there for a little over a year and I'm impressed. My account rep there treats me with respect and they are hungry for more good sellers




Perminate Link for eBay to Disburse Payments to Seller Bank Accounts   eBay to Disburse Payments to Seller Bank Accounts

by: Moonwishes This user has validated their user name.
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Thu Mar 8 01:06:49 2018

"We're working towards creating a single source of truth for you to manage your business"

Ebay the single source of truth? Hardly! They are the last place I would be seeking that from if my own personal philosophy didn't know that I had already found it for all aspects of my life. I can't even believe a business would make a statement like that at all. Does it mean that we won't lie to you anymore? I doubt it. Ebay has been lieing to sellers for years. Why stop now!

I would never want to give ebay my bank account info. And just think about all the clueless newbies that go to ebay to sell and find they have to give control of their checking or savings account to ebay before they can even attempt to sell something.

I don't know what is in the water that they are drinking at ebay, but it is doing some real damage to the head honchos thought processes.

Perminate Link for eBay to Disburse Payments to Seller Bank Accounts   eBay to Disburse Payments to Seller Bank Accounts

by: BobNJ This user has validated their user name.

Thu Mar 8 01:39:49 2018

This will really kill the hobby sellers where they would sell excess or duplicate items to buy other things on eBay. The funds would be available immediately with payments via PayPal. Now they'll have to wait a week or two for their funds so guess who won't be buying much.

Perminate Link for eBay to Disburse Payments to Seller Bank Accounts   eBay to Disburse Payments to Seller Bank Accounts

by: smallstuff This user has validated their user name.

Thu Mar 8 02:26:14 2018

I wonder how well eBay has thought this through.  I understand that they can deduct postage costs, just like Amazon does, from the money received.  And send the net amount to my bank account.  Do they plan to send me money every two weeks, and then invoice me monthly for my fees?  Amazon takes their fees out as each transaction occurs, but with the structure of eBay fees and store fees, I don't think they will be able to do that.  I really don't want them reaching into my bank account for those fees.  It will feel strange as I intend to continue to use PayPal for eBay purchases.

Perminate Link for eBay to Disburse Payments to Seller Bank Accounts   eBay to Disburse Payments to Seller Bank Accounts

This user has validated their user name. by: Marie

Thu Mar 8 02:43:12 2018

Everyone here is ONLY guessing.  NONE of us knows what the payment cycle will be.  So for those reading this blog, please keep that in mind.  We have a long time before this goes on line for most of us, which gives us time to learn the REAL details so we can make INFORMED business decisions on that information.

The webinar really wasn't useful.  It was way too basic and they held it long before they should have.  It would have been better to wait until they had real information and details to share.  We have ZERO details at this point.

While I was listening to the webinar a survey appeared on my screen.  So while I was listening, I was filling it out.  One of the questions was how often I would like to receive my money.  As I remember it, there were a few options.  Something like :  Monthly or Weekly or Daily or Immediately.  Semi monthly may have been in there too.  There were several other questions to, which made it clear to me that Ebay is still collecting data and trying to figure out exactly how they want to handle the payment processing.  

So since they haven't yet figured it out, they aren't releasing details.  At least that is my opinion of all of this.  I don't mind waiting as I said earlier, it is quite a while before this starts affecting most of us.

Perminate Link for eBay to Disburse Payments to Seller Bank Accounts   eBay to Disburse Payments to Seller Bank Accounts

This user has validated their user name. by: DeathFromAbove

Thu Mar 8 03:01:59 2018

Will ebay demand two-way access to a seller bank account?  If that's the case there is definitely going to be another one opened.  Then I'll have to transfer money out of that, and keep a buffer in it for eBay's certain ineptitude.  What a PITA.  I mean are we supposed to authorize random withdrawals too, in case of a fraudulent claim or scamming chargeback?  I'm imagining overdraft fees caused by eBay impatience with correct claim resolution, and class-action lawsuits.

There are no details, so I have to expect the worst, and prepare for it.  Forgive me if I'm wrong.

Perminate Link for eBay to Disburse Payments to Seller Bank Accounts   eBay to Disburse Payments to Seller Bank Accounts

This user has validated their user name. by: DeathFromAbove

Thu Mar 8 03:08:52 2018

....and why are they already doing seminars about this, when the plan isn't even done?  Are they salivating about the 3% that paypal is getting, that they will get?  So excited that they will ignore the rest of the problems they have with lost business and decreasing reputation?  

They will need to hire a paypal-sized staff to handle claims alone.  They definitely can't pass it on to the Philippines phone drones, or expect a crew of 500 in some tiny office in the fjords of Sweden to do it correctly.

Perminate Link for eBay to Disburse Payments to Seller Bank Accounts   eBay to Disburse Payments to Seller Bank Accounts

by: boardwalk This user has validated their user name.

Thu Mar 8 04:42:23 2018

This will be an accounting nightmare. Pay Pal lets you download all transactions when you need it.  Also people use their funds accumulated in Pay Pal to buy goods off Ebay, that will also be destroyed by this new genius idea.

Perminate Link for eBay to Disburse Payments to Seller Bank Accounts   eBay to Disburse Payments to Seller Bank Accounts

This user has validated their user name. by: Rexford

Thu Mar 8 06:30:35 2018

I agree with Boardwalk.  It will be an accounting nightmare.  I'm guessing that it will also be difficult to figure out when he eBay have cheated you out of money owed.

Justchangecarriers says "I will definitely be opening a new bank account for ebay payments to go to, and will be moving money weekly to a different bank. They are not going to have access to my main account."

Same here. I'm not going to allow one of the most inept technology companies on the planet to have access to my bank main account.  I'll keep just enough money in that account to avoid hefty bank fees.

And Ming, I'll add one more thing to your Macbeth reference:  Fair is foul and foul is fair.  To eBay, what which seems fair and good is actually foul and evil.  eBay doth murder sleep.  

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