|Sun May 31 2020 21:12:39|
Does eBay Have a Micro Payments Solution?
By: Ina Steiner
Sellers continue to have questions about payment-processing fees they will be paying under Managed Payments as eBay gets ready to ramp up the program to many more sellers in July.
Today a reader reached out with concerns over micropayments under the new eBay program. Sellers of primarily low-cost goods may be familiar with PayPal's solution - as it explains
on its website, "Micropayments (are) designed for merchants who process low-value transactions (typically under $10 in value)."
While the PayPal payment processing rate for most sellers is 2.9% plus 30 cents per transaction, PayPal offers a micropayment rate
of 5% plus 5 cents per transaction. (Note that sellers must choose their preference and stick to it.)
For a $5 sale, a seller would pay 45 cents under the basic rate, but those who chose to opt-in to micropayment rates would pay 30 cents.
The reader said he was initially given conflicting information about whether eBay even offered a micropayment option.
Then, he was able to request the micropayment option but was declined with no reason given. He's been unable to pry information from eBay about the reason for denying him access to the micropayment rates, nor can he find out what the criteria are for accessing the rates.
The fact eBay is not offering a separate payment processing rate
and is instead integrating it into Final Value commission fees may mean it doesn't offer micropayment rates - but for those who sell primarily low-priced items, lack of access to micropayment rates could be a dealbreaker.
eBay doesn't spell out its rates on a publicly accessible website, and sellers continue to ask eBay to make members of the Managed Payments team available for a chat session, which eBay runs each week, but so far it has declined to do so.