A seller forced into eBay Managed Payments by March 3rd hit a roadblock that could have broader implications for the marketplace as it mandates its own payment processing with the goal of having most sellers enrolled this year.
The seller, who described himself as a casual seller of 15 years, said when his March 3rd deadline came for signing up for Managed Payments, eBay blocked him from further selling.
Conceding defeat, he went to sign up for the program, but was concerned when it required him to enter his social security number. In his post on the eBay discussion board, he wrote, "I have never given that out to anyone other than required government entities, and have always been told to never give it out over the internet. That would be just another server waiting to be hacked and have the SSN stolen. And I don't know what other personal info they want of me after that, because I couldn't get past the first page. So, am I finally going to have to part ways with eBay after all these years because I'm protecting my SSN?"
His post generated an interesting discussion, with some pointing out that the government requires payment processors to collect the information for Form 1099-K reporting, and that he'd likely given his social security number to PayPal.
The seller's experience points out a challenge for eBay in transitioning to Managed Payments, though not an insurmountable one - people have made similar complaints when forced to provide financial information and documentation to other companies such as PayPal.
"I highly recommend you contact Customer Service so you can speak with our managed payments team and have your concerns addressed. They will be able to go into more detail about account security, tax requirements, and any other details that may be relevant as to why a payment processor would need your social security number."
The seller's post indicates eBay is including small sellers in the Managed Payment mandate, and it will be interesting to see how it continues to roll out and how sellers react. The bottom line: Managed Payments will eventually become mandatory for all sellers as eBay continues to roll it out in batches, so it's best to be prepared. You can learn more on this page of the eBay website