It used to be common for people to sell a few items on eBay to generate some funds to spend on eBay, or for sellers to use their sales proceeds to purchase shipping supplies on eBay. That was before eBay transitioned to Managed Payments in 2019. Now it processes payments itself, and seller funds end up being held by eBay instead of in sellers' own PayPal accounts.
Eventually, eBay launched a "Spendable Funds" feature that allowed sellers to use proceeds from their sales to pay for purchases (on eBay only) through a "Stored Value Account," though the feature didn't provide the same flexibility for sellers as PayPal.
A recent post on an eBay discussion board had us wondering about the status of Spendable Funds since its launch in 2022. On Saturday, "bottyranchcollects" sought help in using the feature, writing, "Hello I've been looking around for a long time trying to figure out how to use my spendable funds on eBay. Could I get some help with this?"
One person responding in the thread seemed unfamiliar with the feature, and another strongly recommended against using it. "tobaccocardyahoo" explained, "You will lack the protections that using a credit card provides, especially the issues with fake tracking which the Ebay MBG (Money Back Guarantee) fails miserably on."
Another seller told the original poster they probably didn't qualify and also recommended against using the feature: "The way I use my spendable funds is to wait until they reach my checking account, then pay bills with them."
"When you enroll in spendable funds, you can use your eBay earnings to pay for items on ebay.com as soon as your buyer pays. Select the link in your invitation email, or select Enroll now in the notification in My eBay or Seller Hub. There are no costs or additional fees associated with spendable funds, and it's free to enroll in and use spendable funds."
But over the years sellers have reported trouble signing up for the feature. As recently as last month, an eBay user responded in a Facebook thread, "Buying with seller funds is by invitation only on eBay now." They said they had reached out to customer service but only received responses to "keep your eye out for the invitation."
Sellers also shared their frustration in comments on the following video posted to YouTube in April about how to use Spendable Funds, including a commentor who wrote, "How do you get the email to enroll buddy?"
Another limitation for those who are able to access the feature is that it's not available for purchases on items where sellers have set their listings to "Immediate Pay for eBay Offers," which launched in 2024.
"You will not earn interest on funds held in your Stored Value Account, nor is the Stored Value Account eligible for FDIC pass-through insurance."
The terms of use also note that sellers must add two-step verification to their eBay account to open a Stored Value Account and to use Spendable Funds "for Stored Value Purchases."
A frequent commentor on the eBay boards "mr_lincoln" joined a conversation about Spendable Funds last year, saying he wanted sellers to know the limitations of the funds "because some think they can spend them anywhere like a PayPal account" - but that's not the case.
Sometimes it's easier to justify a purchase if there's some extra cash lying around from a sale you made - which is good for sellers and for eBay. But for all the reasons sellers discussed, and those outlined in the Terms of Use, Spendable Funds may not be the optimal way of doing that - assuming you can even get enrolled in the program.
Spendable Funds is Ebay's way of holding YOUR money longer in their account to make more interest off YOUR money. It's YOUR money. Get it into your checking account and then spend it when it's YOUR money and not Ebay's. Don't let Ebay play games with YOUR money - it's bad enough as it is.
Checking in on eBay Spendable Funds
by: papergoy
Tue Jan 20 07:29:01 2026
If you purchase too many items too soon, they stop allowing you to use the spendable funds (a cool-off period). I tend to go on a buying spree and after about four items, they shut it down and I have to use alternate payment form. Then the next time I go to buy, the feature is toggled off and I have to turn it back on. If you are signed up, it also gets rid of automatic transfers so the money just accumulates in the account. And eBay- I understand you're trying to fight fraud but if I'm buying a fifth item in a short period of time and it's a tape dispenser for $6, and I don't change the shipping address...it's probably a legit purchase. Just sayin'
Checking in on eBay Spendable Funds
by: etectra
Tue Jan 20 07:41:07 2026
"Now it processes payments itself, and seller funds end up being held by eBay instead of in sellers' own PayPal accounts."
eBay does not process anything. That would be Ayden, their Dutch payment processor which eBay gave exclusive rights to in exchange for 15% ownership in Ayden.
You should never use payments in eBay, or your previous PayPal account, to pay for anything. You should use a credit card so you receive a rebate on the purchase from the credit card company. Every single item offered for sale by businesses has this rebate built into the price to cover processing fees that company pays the credit card. If you pay cash you are simply throwing money away.
The entire purpose of Managed Funds was a price increase!
Previously your eBay fees would be billed to your credit card on the 15th or last day of the month. You could deposit all your funds into your bank account and earn interest. After eBay billed your credit card that amount would not be due for almost another month, allowing you to earn more interest. You would then earn 1%, 1.5%, 2% back from the credit card company. eBay's managed payments took this rebate away from you for many eBay expenses and took away the interest you previously earned. For me that meant an immediate 2% increase in eBay fees plus the lost interest.
Managed payments meant eBay no longer had to pay credit card fees on your eBay fees. It also took away the right of sellers to file a chargeback against eBay for filing erroneous charges on your credit card. I for instance got sick of eBay adding random gallery plus fees of $.35 each to my credit card so I returned the favor a filed chargebacks against eBay so they got the message. eBay then tried to get revenge by no longer accepting the card, but the card and the account its tied to is easily replaced by the same company or a different card form a different company can easily be used.
The only time someone from eBay is not trying to lie, cheat or deceive you is when its full blown incompetence.
Checking in on eBay Spendable Funds
by: Snapped
Wed Jan 21 08:49:52 2026
Let’s get this straight. eBay is ‘willing’ to ‘allow’ you to use YOUR OWN money to pay for things on their site, so they can make money off that payment too? But only IF you jump through some MORE hoops and overcome obstacles they have established to ‘verify’ it is really you wanting to spend YOUR OWN money?
People keep falling for this nonsense, eBay is going to keep dreaming up these schemes.
Checking in on eBay Spendable Funds
by: cybercho
Thu Jan 22 12:09:12 2026
airbrake is 100% correct! There's a Youtube video I saw (Can't find it) that details this. Amazon holding seller's money for one week before paying out. It's bad behavior by these platforms who did this because they can. No competition!
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Checking in on eBay Spendable Funds