EcommerceBytes Letters to the Editor Letters to the Editor
Your emails to EcommerceBytes
For consideration, send your email to ina@auctionbytes.com with "Letters to the Editor Blog" in the subject line! Remember to include your name as you would like it to appear in the blog.
Tue May 12 2020 11:21:53

Seller Says eBay Is Too Aggressive with Managed Payment Holds

By: Reader

Sponsored Link

Dear Ina,
I am 20+ year seller on eBay with over 50,000 transactions with 100% positive feedback. eBay forced me into managed payments last fall. They sent me a threat letter sign up or you will no longer be allowed to list, which I resisted and then they followed through on the threat and restricted my account from making new ads until I joined. 

eBay's managed payment page states a seller is going to be protected similar to what PayPal always did if you follow some rules such as ship to the exact address, obtain signature proof if over $750, etc.

I recently had a buyer open a payment dispute with their financial institution claiming they didn't recognize the transaction. 

eBay's managed payments alerted me and we promptly responded and provided tracking proof it was shipped and delivered to the address exactly as on the order, I even have a copy of the shipping label. 

I opened my email this morning only to be shocked by a message from eBay saying they found in the buyer's favor and I owed the full amount plus a $20 dispute fee and they were recovering it from my future payouts. Some protection!

I called in and they couldn't tell me why the system did that but said it was a mistake and it would take a few days but I should be refunded the $20 fee and full amount because I did everything required for the so called "seller protection". 

I wonder how many people they are doing this to in hopes you won't fight it or know the rules. I process credit cards on my own website and I know charge back rules and what is required to win. 

eBay's managed payments would have been forced to eat this one and apparently they are trying to pass them back on unknowing sellers. 

On another note, we are finding eBay's managed payments is withholding funds from payouts for everything they possibly can come up with an excuse to do so on. Buyer opens a return, eBay withholds. Even when the buyer never follows through and ships the item back thus eBay sits on your money for 30 days or more. Buyer opens a dispute, eBay withholds. Buyer opens a credit card chargeback dispute, eBay withholds. 

Normal credit card processors do not withhold anything, they take it from the next payout when it actually occurs and a credit is due. 

Seems to me eBay is holding money every chance they can and making interest on it. I feel they partnered with an overseas company Adyen to get around U.S. banking rules and regulations.
Signed,
Upset seller



Comments (20) | Permalink

Readers Comments

Perminate Link for Seller Says eBay Is Too Aggressive with Managed Pa   Seller Says eBay Is Too Aggressive with Managed Pa

by: FeelingFroggy This user has validated their user name.

Tue May 12 13:34:11 2020

Please note if your not happy then you do have the right to go elsewhere BUT be forwarded its the same elsewhere with a few variations.

Perminate Link for Seller Says eBay Is Too Aggressive with Managed Pa   Seller Says eBay Is Too Aggressive with Managed Pa

by: ShortSeller This user has validated their user name.

Tue May 12 15:22:34 2020

You are absolutely correct as to why Ayden was chosen.

Perminate Link for Seller Says eBay Is Too Aggressive with Managed Pa   Seller Says eBay Is Too Aggressive with Managed Pa

by: pace306 This user has validated their user name.

Tue May 12 21:31:08 2020

eBay MP was chosen to screw sellers (though some here and other places on Youtube) swear its just about business and picking up after the eBay/Paypal split.

eBay was forced to give up Paypal (eBay turns gold into lead), but dont worry - they had it all figured out for them anyways - so they lost/will loose nothing in the split.

eBay also wanted something Paypal wouldnt give them - %100 control over your business. Remember (I member)(Southpark hat tip) eBays statements about hos they let YOU run YOUR business .... yeh that - they didnt REALLY mean it - it was all Wall Street/regulator fluff.

Its as real as dragons, the Loch Ness Monster, the Yeti, Keiser Soze and other fictional characters (I just want to make sure Dean Keaton is dead)(Hat tip to The Usual Suspects - fantastic movie).

I didnt believe eBay, and I hope you didnt either ...cause "lol most sellers will see lower costs" or something.

Letting you run your own business is as real as Seller Protection .... LMAO.

Control over sellers is the name of THIS GAME and the OP clearly demonstrates why most of us (id say all but there are many here and elsewhere that SWEAR differently) are afraid (be VERY afraid) of giving MORE control to the evil empire.

Im gonna have to take a plunge in the MP pool come July - shame the pool has many many shards of glass on the bottom.

When you deal with the San Jose mafia - stuff like this happens - sorry it happened to such a good seller.

:(

Perminate Link for Seller Says eBay Is Too Aggressive with Managed Pa   Seller Says eBay Is Too Aggressive with Managed Pa

This user has validated their user name. by: iheartjacksparrow

Wed May 13 10:27:55 2020

What the OP describes is what most sellers expected/feared when Mangled Payments was announced. Since eBay has a history of being trying to grab every penny they can from their sellers, this story isn't surprising.

Perminate Link for Seller Says eBay Is Too Aggressive with Managed Pa   Seller Says eBay Is Too Aggressive with Managed Pa

This user has validated their user name. by: toolguy

Wed May 13 11:00:37 2020

OP says: "Seems to me eBay is holding money every chance they can and making interest on it."

Yes, they make about .01% interest on money held, so if eBay held $1 million for 1 day it would make about .27 cents in interest on that million dollars!

Perminate Link for Seller Says eBay Is Too Aggressive with Managed Pa   Seller Says eBay Is Too Aggressive with Managed Pa

This user has validated their user name. by: CanBrit

Wed May 13 14:41:01 2020

Well, finally we get to hear from an experienced managed payments subscriber...wait not subscriber, that means you wanted something. An experienced coerced managed payments seller.

It is to be expected from this abhorrent, appalling, awful, disgusting, distasteful, dreadful, evil, foul, fulsome, gross, hideous, horrendous, horrible, horrid, loathsome, nasty, nauseating, nauseous, noisome, noxious, obnoxious, obscene, odious, offensive, rancid, repellent,repugnant, repulsive, revolting, scandalous, shocking, sickening, ugly excuse of an eCommerce platform. How do I really feel?

Mr Ianone. This is what you have taken over.   I feel very sorry for you. I really do hope you are a miracle worker because one is sorely needed now.  

Perminate Link for Seller Says eBay Is Too Aggressive with Managed Pa   Seller Says eBay Is Too Aggressive with Managed Pa

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

Wed May 13 14:41:21 2020

This is exactly what I expected from Ebay when they first announced the Mangled Payments program.  To fight all of the chargebacks that are going to be coming through, especially once buyers find out that Ebay is going to side with them 99.9% of the time, Ebay would need to hire an entire department of workers that understand chargebacks and how to fight them.  That would cost Ebay money, which we already know they are not willing to spend.  Its much easier and much more profitable to find in the buyers favor, make the Seller refund the money and also be able to pocket another $20 fee from the Seller for their efforts.

At least with Paypal you had a chance to win a chargeback case by supplying the documents proving the buyer got the items, but with Ebay the answers that they gave to questions regarding how they planned on handling chargebacks were never answered with a plan of attack.  Instead it was always Ebay Weasel Speak, so I knew that Sellers were going to be in big trouble very quickly with Mangled Payments.  Ebay just does not get the message that all of these unanswered issues are going to kill their site when Sellers leave when they can no longer make a decent profit due to Ebays games.  

Ebay also has never answered my question about a Micropayments account for those that sell a lot of items that cost under $12 which is the breakeven point for having a regular account through Paypal.  If they keep their current new rates in place they will lose a lot of business that really takes little effort on their part.  I used to sell a lot of items under $12 per item and saved a lot of money using the Micropayments account with Paypal, but once again all Ebay thinks about is how much more money can we get from a seller without their sales increasing.

Good luck to those forced into Mangled Payments in July cause Ebay is not going to be close to being ready to handle the problems, let along all  of the phone calls that are going to be coming in from Irate Sellers who cannot seem to get their money timely.  Next up for Mangled Payments is not releasing the money until the buyer has received the item or even worse once they have left positive feedback for the transaction.

Perminate Link for Seller Says eBay Is Too Aggressive with Managed Pa   Seller Says eBay Is Too Aggressive with Managed Pa

by: mjr55 This user has validated their user name.

Wed May 13 16:40:13 2020

I think OP is being a bit overreactive. Maybe they actually just made an error.....at least they fixed it.

As for holds.....Paypal most definitely puts temporary holds on returns opened for any reason, charge disputes, etc.  

Perminate Link for Seller Says eBay Is Too Aggressive with Managed Pa   Seller Says eBay Is Too Aggressive with Managed Pa

This user has validated their user name. by: CanBrit

Wed May 13 19:51:56 2020

@mjr55

Paypal does not indiscriminately put holds on returns or the like. If you have maintained your reputation and had years of service with them, one of the perks is that they don't hold anything. I cannot imagine eBay given any perk to anyone!

Perminate Link for Seller Says eBay Is Too Aggressive with Managed Pa   Seller Says eBay Is Too Aggressive with Managed Pa

by: Tiffee Jasso This user has validated their user name.

Thu May 14 02:14:05 2020

I have had several attempts of chargebacks over the years, and once I upload my information that the buyer did indeed get the package, Paypal had my back. I have never lost. How can a seller lose when Ebay is the one who tells you the item sold, gives you the name and address, and provides the shipping label, and you have proof of delivery from the Post Office. Never have I been charged by Paypal  for disputing the claim with a credit card company. Ebay needs to do a better job or step aside, and let their sellers choose who will process their payments.  

Perminate Link for Seller Says eBay Is Too Aggressive with Managed Pa   Seller Says eBay Is Too Aggressive with Managed Pa

by: careerseller This user has validated their user name.

Thu May 14 09:58:17 2020

If you are longtime established PayPal merchant account in good standing they do not hold anything for charge-backs or returns. I believe paypal calls it "Funds Now". We are a longtime good merchant account and I've never had paypal hold anything nor have I ever lost a paypal charge-back on an ebay purchase paid with paypal when you follow the rules as a merchant ie ship only to the confirmed address, no address changes, signature proof on high value items, respond timely to disputes with all the proof, etc.  

Perminate Link for Seller Says eBay Is Too Aggressive with Managed Pa   Seller Says eBay Is Too Aggressive with Managed Pa

This user has validated their user name. by: Bidonmine

Thu May 14 10:36:13 2020

@toolguy.... Actually, large companies like Ebay receive 1% to 3% on their money. Regardless, they don't leave the money in an account, they use the money to make payments on higher interest debt, pushing the money they owe you, which they pay no interest on, down the road. They bank on the fact that there is a steady flow of money coming in tomorrow to pay you for your money that they used yesterday. Until companies like Ebay are regulated by the banking industry, they will play with your money with impunity.

Perminate Link for Seller Says eBay Is Too Aggressive with Managed Pa   Seller Says eBay Is Too Aggressive with Managed Pa

by: Disgruntled_Seller This user has validated their user name.

Thu May 14 11:13:34 2020

@mjr55

Nope, no holds from Paypal. Might help to "most definitely" know what you are talking about as it does vary from Paypal client to client.  

Perminate Link for Seller Says eBay Is Too Aggressive with Managed Pa   Seller Says eBay Is Too Aggressive with Managed Pa

This user has validated their user name. by: toolguy

Thu May 14 11:16:17 2020

@Bidonmine

How is eBay getting 1-3% when the Fed is loaning money out at 0-.25%



Perminate Link for Seller Says eBay Is Too Aggressive with Managed Pa   Seller Says eBay Is Too Aggressive with Managed Pa

by: Shanna This user has validated their user name.

Thu May 14 13:51:34 2020

Wow, Tool, you know less about banking than you do about business. Who knew?

Perminate Link for Seller Says eBay Is Too Aggressive with Managed Pa   Seller Says eBay Is Too Aggressive with Managed Pa

by: RL15 This user has validated their user name.

Thu May 14 18:38:15 2020

@Shanna - Well put!

Perminate Link for Seller Says eBay Is Too Aggressive with Managed Pa   Seller Says eBay Is Too Aggressive with Managed Pa

This user has validated their user name. by: toolguy

Thu May 14 23:22:10 2020

eBay can get 1% from BofA if they put the money into a 120 month CD account.

(That's a 10 year commitment)

Isn't eBay only holding the money for a few days???

Perminate Link for Seller Says eBay Is Too Aggressive with Managed Pa   Seller Says eBay Is Too Aggressive with Managed Pa

by: angryllama This user has validated their user name.

Fri May 15 05:55:37 2020

Original Poster ! ! . ... PLEASE tell us MORE about your experiences .... the GOOD ONES as well as this AWFUL one.

The way eBay is keeping just about ANY REAL-WORLD details such a DEEP, DARK, SECRET is extremely foolish on their part as it makes anyone with an OUNCE of intelligence SHY AWAY as only GRIFTERS and CHEATS refuse to divulge the DETAILS of any deal they say is BEND OVER to TAKE IT or SHOVE IT.
If anybody at eBay IS reading this thread....  Buy a Clue and make it COMMON KNOWLEDGE what the Real Deal Is on Mangled Payments.  If it is AWFUL ... fess up now and take your lumps.  If it is BETTER than we all are FEARING be honest with your REAL CUSTOMERS (the sellers PAY you, not the buyers).

Perminate Link for Seller Says eBay Is Too Aggressive with Managed Pa   Seller Says eBay Is Too Aggressive with Managed Pa

by: Shanna This user has validated their user name.

Fri May 15 10:43:14 2020

Tool, you, a peon to BOA, can get a pittance on your money, but eBay is going to float tens of millions every day. Its not your $10 entering on Monday and leaving on Thursday, its the fact that at any given time the account holds a lot of money, it never empties, thus the bank can use that money for loans and investments. When you have a lot of money, banks treat you differently. I know the concept is hard to understand, but note all the big banks processed SBA loans for all their big customers before getting to the small businesses, after the money had run out.

Perminate Link for Seller Says eBay Is Too Aggressive with Managed Pa   Seller Says eBay Is Too Aggressive with Managed Pa

by: ebayout This user has validated their user name.

Fri May 15 19:44:20 2020

I can save a whole 60 cents on $100 in sales with MP...and ebay gets to keep the 30 cents that PP used to get IF I choose to sign up.
ebay...what...no reach around?



Login is required to post comments.
To sign in to leave a comment, fill in the form below. If you have not yet signed up for AB Verify, or if you'd like more information, go to the Registration Page
.

Login for AB Verify
Be sure and use your email address and password to log in.

 
Email:
Password:
 
 Forgot Your Password?
 Even though you are signed in with the AuctionBytes Blog, you will have to sign in to the EcommerceBytes blog. But you can sign in with your existing AB Verify info.