Ina Steiner EcommerceBytes Blog
News and insight focusing on ecommerce.
by Ina Steiner, Editor of EcommerceBytes.com
Sun Aug 18 2019 20:05:41

Will eBay Protect Sellers from Costly Chargebacks?

By: Ina Steiner

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As eBay takes over payment processing from PayPal, sellers have many questions. On Wednesday, a seller who is already enrolled in the program expressed concerns about how well eBay would protect sellers from unwarranted chargebacks. 

The seller explained that eBay showed the reason for a chargeback he received from one of his buyers as "ambiguous," and he noticed another seller on the managed payments board also reported receiving a chargeback with "ambiguous" as the reason.

The buyer opened the chargeback using "the transaction was ambiguous" reason, according to the seller who wrote, "Buyer never opened a return request. Buyer never contacted me. eBay sent me a message saying eBay would handle it for me."

However, the chargeback was found in buyer's favor. The seller asked why that was the case and wrote, "Buyer kept my merchandise and got their money back. I lost my merchandise plus cost of shipping and shipping materials. Probably a charge back fee will show up on my monthly invoice. I did everything right but still lost."

"Is "the transaction was ambiguous" a new means for buyers to open charge backs with automatic wins," he/she asked the moderators of the recent weekly chat - "What can sellers do to protect themselves from this? And what exactly does ambiguous mean in this context?"

The moderator responded as follows:

"I can't speak to account specific activity, but I know that chargebacks are handled directly between the payment processor and the funding source/financial institution. Ultimately the decision on whether or not the money will be refunded lies with the financial institution. 

"I know that we do everything we can to represent the situation accurately with the financial institution, but I can't speak to specifics of what could have happened with this particular situation. I'd recommend contacting our managed payments team directly by phone so they can review it and get you more insight. Thanks!"

Another seller shared their experience with an eBay chargeback through PayPal: "I had a charge back occur in PayPal and they fought for me and we won. I'm not hearing or reading where eBay-Adyen are doing the same thing ... should we be concerned? I think so ..."

Another seller wondered, "Why did this seller lose their product and their money with no protection whatsoever and no say in the matter?"

The moderator pointed to a page on eBay.com that described detailed information about managed payments disputes including what protections eBay offers. 

In a section titled, "Seller protection and dispute fees," eBay reveals the fee it collects from sellers who fight and lose a chargeback dispute: $20.

"If a buyer files a payment dispute, and you're found to be responsible for the disputed amount, you'll be charged a $20 dispute fee by eBay. If you accept the payment dispute, and issue a refund, eBay will waive the dispute fee, and you'll be responsible for the refund amount issued to your buyer. "

We're expecting the number of questions to increase as eBay rolls out more widely. In fact, a reader forwarded a letter they received from eBay in which it stated, "All eBay sellers will progressively be required to transition to managed payments in the coming months."



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Readers Comments

Perminate Link for Will eBay Protect Sellers from Costly Chargebacks?   Will eBay Protect Sellers from Costly Chargebacks?

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

Sun Aug 18 20:54:20 2019

No, you will get chargebacks + multiple NSF fees from eBay's scams, they would have put millions out of business on their last bills on the overbilling fraud on Good Til Canceled listings if we would have not forced them to give credit on those illegal fees.

Here is what all sellers can expect from managed payments, a lot of NSF fees, eBay taking more cash from you in fees when they push you to the 40% penalty, you had better kept a lot of cash in the bank or you will be out of the eBay business due to Wenig's criminal schemes.


https://community.ebay.com/t5/Payments/Managed-Payments-bleep/m-p/3014
1518#M61106

Aug 17, 2019 2:02:10 PM


Well, I made a big mistake 2 days ago, when I fell for those eBay emails and ads promoting "Managed Payments"! I signed up for it… since then I have sold 14 items… but I haven't seen a CENT from these sales!!

I am currently out of work (I have been a Licensed Veterinary Technician for 24 years) because of a back injury. Workers comp could take months to kick in, so selling on eBay has become my Full Time Job! I do not own any credit cards, just a checking account and PayPal. I am a "Top Seller" and am required to ship within 1 day.

Yesterday I did call eBay twice to try to Opt Out of Managed Payments! Both times I was told that no one is allowed to get out of it anymore! I was also told that beginning in September (yup, next month!) EVERY Seller will AUTOMATICALLY be switched to Managed Payments!! So, maybe my own mistakes can help prepare you… a little bit!!

I did not read all of the small print when it came to Managed Payments! I did not realize that it could take 3 to 4 days for me to get paid for each sold item, however I am still somehow responsible for the huge costs of next day shipping! They do not warn you to make sure you have plenty of money saved up in your PayPal and/or your checking account BEFORE starting Managed Payments, especially if you are a Top Seller and are required to ship within 1 business day!

The biggest eBay nightmare I have had so far was yesterday, Friday! I had NO more money in my PayPal account and my checking account had only enough money for me to pay for 1 or 2 of the Lightweight shipping labels! I had just sold NINE items that ALL had to be shipped the following day, Saturday, before the post offices close at noon! Ebay says that with Managed Payments your “Pending Money" will be sent to your checking account the following day after 1pm Pacific Time. I live in Connecticut, so 1pm Pacific Time is 4pm my time! Even during the week that is only 1 hour before the post offices close!

So, last night I called my husband in a panic!! He is currently helping his sister move, and is in North Carolina! I had to get his credit card information and use it to pay for over $180 in shipping labels!!

Right now it is Saturday, 5pm in Connecticut and you guessed it….. I STILL have not been paid for items that I sold over the past TWO days!!!

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This user has validated their user name. by: The End

Sun Aug 18 21:01:47 2019

THAT'S IT !
Throw it down and walk away.

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

Sun Aug 18 21:34:08 2019

This is what millions of sellers are doing right at this very moment, ending their relationship with eBay for good, all due to Devin Wenig and his lunatical ideas and forced policies which all require sellers to pay eBay more money to sell on eBay.

https://community.ebay.com/t5/Seller-Hub/August-sales-so-far-0-Been-se
lling-since-2001-What-has-ebay-done/m-p/30144784#M45005


Aug 18, 2019 4:37:08 PM

Two days ago, I closed my store and removed all my listings before they drained me of any more money. It's really sad to me......

I am going somewhere else, just researching my options, I don't want to walk into the same situation again. Best of luck!

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This user has validated their user name. by: toolguy

Sun Aug 18 21:45:28 2019

I don't think I'll be buying into this program as a seller

But it sounds great from a buyers stand point. . . . . .

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by: Silver Ice King This user has validated their user name.

Sun Aug 18 22:27:54 2019

To properly handle chargebacks Ebay would need to create a complete chargeback department that does nothing but handle chargebacks.  In Wenigs current austerity mode there is no way in heck that is going to happen, so Sellers need to get ready for  Ebay to start adding all of these $20 charges to their accounts for lost chargebacks.  Again instead of spending money on a chargeback department, Ebay can actually make money off of all these $20 fees they get collect.  I am sure that Wenig is licking his lips waiting for ALL Seller to be forced into Mangled Payments so  he can start watching all of these extra fees and a lot more interest start flowing in when they hold the funds for a day or two, which will probably increase every sellers update so they can show some type of revenue growth as i am sure that Sellers are going to start bailing out of Ebay as soon as they can rather than allow Ebay to control their money.

The date that Ebay can start forcing all Sellers into Mangled Payments is sometime in 2021 and i would venture a guess that it is around July of that year that they do so. Ebay is still constantly changing the rules for Mangled Payments and those Sellers who have opted in are stuck with them unless they stop selling on Ebay, period.  By time they force all sellers into this fiasco, not much of what is in the Mangled  Payments policies now will still be the same as they find more and more ways to squeeze additional funds from Sellers.

Also Ebay continues to hide the Mangled Payments Discussion boards unless you are in the program, which to me shows that they have a lot of issues which they do not want made public to  anybody not in the plan.  As usual Ebay is going about this conversion in all the wrong ways just so they can get more money from their current Sellers without the Seller getting anymore in sales, just as Wenig stated was Ebays goal after the 1st quarter results were announce showing a significant drop in sales.  He really thinks that he has the wool pulled over all Sellers eyes, but I am finding more and more Sellers using Ebay to strictly sell very hard to sell items on Ebay as it is still known for finding hard to locate items.

In all my years in the Credit Card industry i never heard about a chargeback code stating the transaction was ambiguous.  I guess Ebay ran out of situations for creating new buzzwords so they have now applied that to Mangled Payments.  The worst part of the entire thing is that Ebay has no intentions of fighting any Chargebacks because that might cost them a customer and they still think that Sellers are a dime a dozen.

I highly recommend that all Sellers start creating an alternative to selling on Ebay before Mangled Payments becomes mandatory for all as once it is forced on all Sellers, Ebay and Wenig will have finally gotten what they want, complete control of your business to run any way they see fit, and to charge additional fees when ever they feel like it to increase their revenues, even if the changes cause a Seller to lose money on transactions.  Ebay is supposed to make as much money as they can as publicly traded company, but they also have a fiduciary responsibility to their customers which Sellers are regardless of Ebay saying that only the Buyers are their customers.  I for one plan on either being gone or only selling low end product on Ebay  so there is not much for them to grab onto when they are not meeting their projected numbers!!

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by: pace306 This user has validated their user name.

Sun Aug 18 23:12:50 2019

Sure, eBay will fight Chargebacks for you!

Ok eBay cheerleaders - lets hear it .....

eBay/Adyen set up MP to make sure you as a seller CANT do anything (except call inept moronic people in the Philippines.)

Does eBay fight for you when you get a return? NO
Does eBay fight for you when a buyer doesnt pay? NO
Does eBay fight for you when Postal Rates are raised? NO
Does eBay fight for you when you get VEROd? NO

So somehow NOW eBay will side against a buyer and Adyen and its bank just for you?????

If you are in MP, PRAY you never get one, pray theres never a dispute - because "your partner" will be as they are now - no where to be found.

The San Jose mafia rides again!

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This user has validated their user name. by: Bill

Sun Aug 18 23:56:56 2019

Ambiguous in this case means basically no clear defined reason at all.
What is ambiguous is eBay's description on what charge backs will cost. They say if you give a refund 9which is what a charge back is then there will be no charge to the seller but than they also say if you get a charge back their will be a $20.00 fee. So what is the real cost for this?

As I have said before when I am forced into using MP that will be the end of my 20+ years of selling on eBay and my escape plan is already in motion. I will not be held hostage by these sycophantic, schizophrenics morons that run eBay. You can not trust anything they say any more.
That is why:

eBay = Dead Man Walking

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by: thriftyattireandstuff This user has validated their user name.

Mon Aug 19 00:22:50 2019

First to the person above.. who says they were told eBay is switching everyone over to managed payments next month.. That's not going to happen, so stop spreading disinformation. Also.. read the print always.. I know that getting your payments ACH rather than PayPal will take time.  You can't just start selling on eBay and make money unless you have a plan. But the more curious thing to me is... are they asking every "new seller" if they want to sign up?   I'm doubting this also, so I'm just basically finding you to be a negative nancy along with the rest.

Secondly, while I appreciate some of these stories we never get the real details about these chargebacks because the people who report these stories tend to leave out important details. I'm not sure why.

Thirdly I'm not saying eBay isn't a mess. It is.. But you have to adapt.. Any business.. You have to adapt. Look at the brick and mortar retailer closures.. They never adapted to the market and environment.

4th and final. To the guy who has an out strategy. I actually believe you and I hope it works well for you. You seem convicted.  

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by: flybuy This user has validated their user name.

Mon Aug 19 00:28:52 2019

I will leave too once it becomes mandatory. If they are smart, other platforms such as etsy and Mercari will have a plan to lure disenchanted EBay sellers. It appears this is what is going on at Facebook Marketplace. Not to mention people sell on Instagram. Has anyone else noticed the grim messages from Ebay when communicating with a buyer/seller? So EBay plans to.make money with mandatory payments, ambiguous charge backs and threatening members to stay away from potential buyers outside of Ebay. I bet EBay despises the fact sellers can sell nationally and internationally on FB marketplace and Instagram and still have protection for both buyer and seller by using a PayPal invoice.

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by: flybuy This user has validated their user name.

Mon Aug 19 00:44:07 2019

I will leave too once it becomes mandatory. If they are smart, other platforms such as etsy and Mercari will have a plan to lure disenchanted EBay sellers. It appears this is what is going on at Facebook Marketplace. Not to mention people sell on Instagram. Has anyone else noticed the grim messages from Ebay when communicating with a buyer/seller? So EBay plans to.make money with mandatory payments, ambiguous charge backs and threatening members to stay away from potential buyers outside of Ebay. I bet EBay despises the fact sellers can sell nationally and internationally on FB marketplace and Instagram and still have protection for both buyer and seller by using a PayPal invoice.
1stDibs has already demonstrated people will pay more to get authentic mid century and antique pieces which do not require major restoration. Also the company handles shipping and probably gets volume discounts. Buyers can avoid sellers who claim a Wayfair end table was made in the 50s and is very rare. It will be interesting to see how it all shakes out

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by: nothingnew This user has validated their user name.

Mon Aug 19 00:44:15 2019

@shillbuster
You are trying to keep the 20% off being a top rated seller with the 1 day shipping time. I'm also a TRS but never gets the 20% off because I refuse to jump through the 1 day shipping requirements. Just let it go for 1 month. Then the next month get back on your 20%  shipping in 1 day. That 20% isn't worth the stress it takes to get it as far as I'm concerned.

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by: Disgusted This user has validated their user name.

Mon Aug 19 00:46:25 2019

Every return request will end up costing you $20.00 unless you give full refund at once. No returning items etc. Just a fast refund, buyer keeps product.  I also think ebay will get you to fork over the 20.00 and say it is a glitch.  
This will bring out all the crazy buyers knowing they can just claim anything, keep product and full refund. No arguement.
Protecting sellers will not happen. Never has never will.  So on top of the extra FVF they take on 20.  Great company-so desperate.  For the life of me I cannot see why Wall Street hasn't seen that ebay is in desperate mode.

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by: nothingnew This user has validated their user name.

Mon Aug 19 00:53:34 2019

I'm not signed up for mp. And sold a 500.00 lamp a few weeks ago. As I was having it weighed for shipment she emailed me with a different address 700 miles further away. So I had to cancel that transaction. And she needed to correct her address on eBay and PayPal and I would relist it so she could buy it with the correct address. Preypal charged me 17.40 to refund her money. I wasn't to happy seeing that. It might be easier to just get off eBay and pit the nightmare of all the double talk in my rear view mirror.

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by: nothingnew This user has validated their user name.

Mon Aug 19 01:01:04 2019

In the last month I'm being bombarded with invitations to join mp. When they force me to take it. Most likely will be my last days on eBay. After 22 years it will be the last straw for me.

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This user has validated their user name. by: toolguy

Mon Aug 19 01:47:25 2019

Sellers who can't afford the out of pocket shipping will be forced to cancel orders!

eBay buyers will be very unhappy with canceled orders.

eBay will become known as the king of cancellations. . . .Buyers WON'T take very much of that. . .

eBay has to release shipping fees at the time of payment or this whole system will crumble!

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This user has validated their user name. by: toolguy

Mon Aug 19 02:02:57 2019

@nothingnew

"You are trying to keep the 20% off being a top rated seller"

Where have you been? It's been 10% for some time

"Preypal charged me 17.40 to refund her money."

Paypal lets you refund without paying a fee.

For someone who's been on eBay for 22 years you sure don't keep up with what's going on. . . . .

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by: Eliot This user has validated their user name.

Mon Aug 19 03:05:26 2019

@nothingnew Ebay no longer gives you a 20% discount off the fee for being TRS plus; it's only 10%. So for tons of unneeded stress, the seller gets 1% of the selling price in return. I didn't think it was worth the anxiety when the discount was twice that much.

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by: hawk This user has validated their user name.

Mon Aug 19 04:32:00 2019

ebay will only end up destroying their long time good sellers over greed of power and money. they will protect no one. sorry--greed rules at ebay.

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by: FeelingFroggy This user has validated their user name.

Mon Aug 19 05:10:12 2019

This is the new program where Ebay is going to protect the seller. ITS CALLED THE COST OF DOING BUSINESS. Ebay doesn't care. Its just hot air. AGAIN

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by: lancecorp This user has validated their user name.

Mon Aug 19 05:39:25 2019

thriftyattire - the fact remains that unless you are enrolled in MP - no one has a clue what issues are still present or how such cases are handled. If you are enrolled in MP than maybe you would be willing to answer some questions so false information isn't dispersed.

I have no doubt the one poster was indeed told that everyone would be enrolled as of next month as more than once Trinton has had to come to the boards with the correct information and say that the CS would be talked to. They make all sorts of claims to those calling in that aren't true.

And while people have to adapt - it would be much easier if things were not only transparent but if everyone was on the same page - which they are not. We were told that MP would save everyone money. Sorry but .03% is not much of a savings coupled with the additional 25 cent transaction fee per item if combined from separate listings.

GTC was supposed to enhance sales - but from graphs, statistics and data ect
that many sellers have gathered and presented on the Ebay discussion boards
that doesn't seem to be the case and yet there are still those here and on the Ebay boards that continue to bow down to their leader drinking the kool aid. I will continue to use the venue as it uses me.

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