GETTING PAID ON EBAY IS CHANGING.

[epigramophone]

I have been notified by eBay that "Fees and expenses will be deducted before you get paid out and the remainder of your earnings will go directly into your bank account, not your PayPal account.
No more PayPal processing fees. No more separate monthly fee payments."

I have been asked to provide my bank account details, which PayPal already have.

Has anyone else received this message, and if so what do you think of it? Does this mean the end of paying in cash when collecting in person?

[52089]

Ebay's "managed payments" program is replacing PayPal. It's being phased in over time, but eventually everyone will be required to switch.

I can't speak for the UK, but in the USA, it generally means that the 10% ebay fee and the 2.9% PayPal fee are being replace by a combined 12.55% (?) managed payments fee, which is deducted from your net payment. Therefore there will be no more ebay invoices to pay each month. Not sure how this affects paying in cash as this is generally uncommon here now.

If you are unsure about providing banking info in response to an email, you can always contact customer service and go through them to provide banking details. USA sellers also have to provide Social Security number so that income can be reported to the IRS for tax purposes.

[Phono48]

If PayPal already have your bank details, then this seems to me to be somewhat suspicious! Is it also likely that that they would voluntarily deprive themselves of income? Hmmm..... I await the outcome with interest!

Barry

[gramophone-georg]

If PayPal already have your bank details, then this seems to me to be somewhat suspicious! Is it also likely that that they would voluntarily deprive themselves of income? Hmmm..... I await the outcome with interest!

Barry

eBay and PayPal officially split about 5 years ago. The new Managed Payment program is an Ayden product and so it is a completely different company. The investors felt that eBay was actually holding PayPal back on growth, so they forced a spin off. PayPal DOES still have your payment and banking info, but they never shared it with eBay.

Hope this helps clarify things.

[soundgen]

I was asked to do this in November see post below to date I have refused so now cannot list new items , relist items or edit items

viewtopic.php?f=14&t=47826

[JerryVan]

I wonder if instead of them sending money to your bank account, they could send it to your credit card. We'll see I guess.

[epigramophone]

Many thanks for your helpful replies, gentlemen, which I put to my son who is more Internet savvy than I am.
He makes some interesting points which I thought worth passing on to you, so here in summary is what he had to say :

The additional 2.5% which eBay are gifting themselves is the main motivation behind this change in their policy, although they pretend that it is to simplify things for sellers, just as they did when they began charging fees on postage costs.

They will have looked at their market and decided that any loss of revenue from sellers abandoning eBay will be more than offset by the increased fees which they will soon receive.

eBay is probably still the best marketplace for the specialist items which collectors sell, but by giving them our bank details we are effectively banking on line with all the vulnerability to fraud which goes with it. My son knows that having spent my entire working life dealing with other people's money, I would never bank on line.

My son's advice to me is that to receive the proceeds of my eBay sales I should open a basic current account with a bank other than the one I normally use. To protect it from fraud the account should have no overdraft facility, and any incoming funds should not only be cleared but should not be subject to cancellation or refund without my specific agreement.

I will be following this advice. Meanwhile I have ended the few listings which I had running on eBay, and will not be adding any more.

[JerryVan]

PayPal already has my checking account number and my credit card info. I can't see how eBay having the same is any more of a risk than I've already been taking. I don't like either one having this really, but so goes the world these days...

[CarlosV]

PayPal already has my checking account number and my credit card info. I can't see how eBay having the same is any more of a risk than I've already been taking. I don't like either one having this really, but so goes the world these days...

Actually, the risk is multiplied. There is a certain probability that EBay and Paypal will protect your account data, say 0.9 for Ebay and 0.8 for Paypal. These two events being independent (paypal and Ebay being independent of each other), then the probability of your account being protected from hacking is P(EBay) x P(Paypal) = 0.9 x 0.8 = 0.72. In reality the numbers are much higher than 0.9 (or at least I would hope so), then in practice it will not make much difference. But giving your bank data to more institutions will increase the risk of it being hacked.

Roger's suggestion is actually very wise. With a separate bank account to deal with these on-line deals, your main account remains out of reach to hackers. The bank could be hacked, evidently, but all banks have insurance to protect their clients, which is not the case with Ebay or paypal.

[52089]

I have multiple accounts at my bank, one of which is more or less dedicated to being an interface to eBay and PayPal. I keep the balance of this account close to zero. Money transferred from my PayPal account goes to this account and is than transferred to another account within 24 hours of clearing. Likewise, when I want to pay someone from PayPal using this account, the amount is transferred from another account before initiating the PayPal transaction. So far this has worked well with no issues.

As for banking online, I have never had issues with this either. To each his own.