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: ThisGuy This user has validated their user name.

Mon Jul 30 17:13:20 2018

This whole new payment processing is just another money grab from all of us.  It seems to me this is going to be a huge disaster and disruption.  They never should have spun off Paypal.

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.

Mon Jul 30 17:17:00 2018

What a disaster waiting to happen.  The sellers cannot opt out once they have opted in and buyers cannot pay with Paypal?  I understand not being able to have your funds deposited into Paypal but to not allow your buyers to use it as a payment option is just stupid on Ebays part and will cripple a lot of sellers who opt into it.  Buyers like having that extra protection and also using their Paypal Funds when they sold something.

Also not allowing sellers to use 3rd party selling tools is going to be a big blow as most sellers who do any kind of volume use some kind of listing tool to make listing and storage of listings easier.  This will also force all the sellers to now list all of their items in Sellers Hub which is a nightmare for me even having to use it for editing a listing as the circle takes forever to finally go away, and that is with 200MBPS Internet Speed.  I can only imagine how bad this is going to be for those that live in rural areas that have super slow Internet speeds..

Now I see why Ebay is not disclosing information about the plan openly.  They already saw the backlash when it was first announced they were going to be the payment intermediary combined with the hesitation of so many to use Sellers Hub (which is a requirement for Ebay Payents).  So if they were to release all this information to sellers publicly it would be another Discussion Board disaster for EBay.  I can already see the comments about not being able to use Six Bit or Auctiva as a listing tool once that become public knowledge.

As usual, Ebay does not know how to be transparent about anything and now that they let the cat out of the bag at Ebay Open that information is going to get deciphered and posted thousands of different ways until nobody really knows what is going to be happening and Ebay will not have enough for a test group at which time they will just grab sellers for their test groups like they currently do without letting the seller know.

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 17:58:18 2018

eBay has lost what little mind they have left.

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

I DON'T have a credit card so I guess I won't be buying on eBay during the beta test!

I use Paypal for almost everything, it's my daily cash card!

I know people who only use Paypal to buy online, they will no longer be buying on eBay.

You want to make money? short eBay now! short eBay now! short eBay now!

Devin Wenig has to own Amazon stock, and lot's of it. . .

Has anyone else seen a MAJOR change on the eBay shipping page today?

Another goof ball page brought to you by ebay!

I have to wonder what the motive is for so many changes?

I can tell you I'm almost finished with eBay, Northrup here I come. . .

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 18:24:47 2018

ebay is toast

burnt toast

we all know where burnt toast goes!

eBay's only hope is to be bought by Apple. . .

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

Mon Jul 30 18:39:21 2018

"Drum beaten into using PayPal"; more like beaten over the head with concrete blocks into using PayPal. Buyers have been told for years that PayPal was the only safe way to pay, otherwise those nasty, evil sellers would steal our money if we sent a check or money order. Now buyers are supposed to forget what they've been hearing for over a decade and gleefully pay using a new system they have minimal details about.

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

by: yesmikan This user has validated their user name.

Mon Jul 30 18:59:54 2018

eBay spent a decade and a half demanding that Paypal was the ONLY way to pay, and now they have to undo the damage they've done to themselves and retrain all of their customers.

Though I admit I'd be on board for a 2.7% fee with no flat or minimum charges added, if the Paypal ban weren't in play.

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.

Mon Jul 30 19:20:12 2018


the delusional ceo sure is doing a great job getting fleacebay ready for Alibaba

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.

Mon Jul 30 19:25:12 2018

NO opt out, NO paypal, for sellers who opted into the test



who in their right mind would opt into this , you would have to be on drugs

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

by: eBay Shill Buster This user has validated their user name.

Mon Jul 30 19:43:24 2018

Sellers should face reality, eBay is not a world class company, so take what you can get from them, cut your spending on eBay and open up on BigCommerce, Shopify, Amazon, Etsy, Posh, Offerup, Craigs and all the other markets popping up.

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

by: ebayout This user has validated their user name.

Mon Jul 30 20:44:24 2018

Wenig needs some focus group input...from one made up entirely of psychiatrists.

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 20:56:24 2018

My new business plan: Get away from ebay as fast as I can.


IT'S OVER!

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 20:59:41 2018

1st very few will sign up for this

2nd they will see a exodus of buyers

3rd there will be no return from the ashes

(mic drop)

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

Mon Jul 30 21:18:53 2018

@Toolguy
Are you referring to the shipping page going from the old format to the New format, or from the New format to some ''Newer'' format, if there is one?

I've been on the new shipping page for a month, and have been sending constant hate messages on the ''What do you think'' link.  There is not a single improvement.  The old page could be viewed on one screen.  The new one has all the SAME info so stretched out that you have to scroll all the time.  I use 2 FROM shipping addresses alternately, depending on what is ordered (I have a crazy post office).  I used to be able to switch from a drop down list and lock either one in.  Now I have start typing the address in the edit box so that the browser will autocomplete.  And then do it all over again on the next package.  Really stupid.

On the old page there was an automatic message to the buyer.  Now I have to insert it each time and check a box.  There is a mandatory box that applies text to the label, whether you want it or not.  It takes text from anything you have in the field ''Custom Label'' on the listing form, which might be a note to yourself, a cost value, a shelf location, etc. and prints that on the label.  If you have nothing in that field, it puts the item number on the label.  I'd like to decide MYSELF if something extra should be on the label.  I'm going to add ''I HATE EBAY'' to the data field so that it gets printed on each label, recommend you do, too.

If you want to set up a different ''SHIP FROM'' zip code, such as setting up a return label for a buyer, you can't do it without messing up your own return address.  Again, something that was THERE ALREADY on the old form, gone now.  I know you can (each time) select to go back to the old system, but it's just a matter of time until you can't, so I try to get used to the new stuff asap.  But this new page just stinks to high heaven.

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

by: angryllama This user has validated their user name.

Mon Jul 30 21:19:36 2018

Hail No, I won't sign up for THIS TrainWreck.   Not just SELLERS actively use their PayPal balance to PURCHASE items on/thru eBay.  YEARS of making PayPal the ONLY payment method has TRAINED an ARMY of happy eBay BUYERS to fund and hold $$ in PayPal day in / Day out.

Can't you just SEE the shocked face of a HAPPY eBay buyer who finds Just What He/She Needed at Proper Price from an eBay seller only to be TOLD, "Sorry Bud, your PAYPAL $$ are NO GOOD here.  Hit the bricks, you bum."    

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: RKTOYS

Mon Jul 30 21:22:39 2018

@toolguy
Everybody warned you not to volunteer for the beta.  Sorry this happened to you though.

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

by: ebayout This user has validated their user name.

Mon Jul 30 21:23:05 2018

Wenig will soon have a Black Hole named after him.

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

by: ebayout This user has validated their user name.

Mon Jul 30 21:47:58 2018

How will the "your paypal account is not welcome here" message be communicated to buyers?
Same way they communicate changes to sellers?

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 22:03:23 2018

After 18 years of being full time ebay sellers me & my wife have decided to throw in the towel.

Starting September 1st we will wind things down & start going to the Long Beach Hot Rod Swap Meet to unload the bulk of our tools.

We hope to be off ebay by years end.

It was a sweet ride while it lasted, I got to watch my kids grow up from home.

hasta la vista eBay

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

by: justchangecarriers This user has validated their user name.

Mon Jul 30 22:18:16 2018

Does ebay keep a detailed transaction summary like paypal? When Im recording transactions into an accounting log, I need the data as paypal presents it in history. If ebay is just making deposits where is the data kept?

Ebay cant even secure pictures yet they want to process sensitive information payments. I am definitely not opting in to this nightmare. If people cant use paypal they arent going to use this service.

The 2.7 percent fee for transaction is actually rather pathetic. Saves very little compared to paypal. No transaction fee is only useful for small items. Looks like another gift to the cheap goods sellers.

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

Mon Jul 30 22:27:11 2018

Typical ebafia bait and switch.

They failed disclose ALL the terms before the guinea pigs signed up.

If you can afford it, get a lawyer to contact ebay and GET OUT of this illegal bait and switch.

The mob bosses strike again.

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