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Ebay Managed Payment System
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281 posts in this topic

Its so hard to get information about this out there on the world wide web. Lots of different things being said.  I'm waiting until the last minute to do it. I'm pretty much done selling on that site for the rest of the year anyway. And I think I may open a new account in a new bank just to use for ebay funds. I have a feeling one reason for this is to collect tax revenue (federal) on everything you sell. Taxes on 100% of the sale price. That $20,000 paypal "threshold" is nevermore.

I hope if anyone here is using the new system already they keep us posted on how it's going for them. 

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I was switched over a few months ago. It seems like the fees went up. Ebay holds the money for a week (my choice there) and then they transfer it to my bank. If I buy things I usually use my bank card now since paypal is not really my main source. I guess I will use paypal for the boards and other private type sales from now on.

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1 hour ago, littledoom said:

Let's not forget ebay still charges the .30 cent processing fee that PayPal would charge on EVERY transaction.. very lame

EBay, PayPal, anyone who processes credit card payments charges the 30 cents because the CC companies charge them the 30 cents.  They are just passing it on, as a go-between. 

Your gripe is with Visa, MC, etc.  Not likely to stay at 30 cents much longer, though.  It's been there a long time.  Might be time to bump it up a nickel or a dime.  Who's going to stop them???

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1 hour ago, nochips said:

I was switched over a few months ago. It seems like the fees went up. Ebay holds the money for a week (my choice there) and then they transfer it to my bank. If I buy things I usually use my bank card now since paypal is not really my main source. I guess I will use paypal for the boards and other private type sales from now on.

Yeah the fees always seem higher than what they say they are on paper.

After my previous post I found this , not that it was hard to find.

https://www.ebay.com/help/selling/fees-credits-invoices/selling-fees?id=4822

So with PP it was 10% plus 2.9% = 12.9%

Now its 12.4% + the 30 cents as always. So according to that its about 50 cents cheaper per 100 dollars. Unless with comics they charge 14.4%  now. It says for books,dvd's, movies, ect they charge that %. Hope the heck not. 

Do you know if you can now transfer a specific amount of your money from ebay to your bank account like you can with PP? Or do they automatically send it all to your bank account after a certain time? Basically do you have an option of not having it all put in your account in one lump sum?

Edited by Professor Chaos
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4 minutes ago, Professor Chaos said:

After my previous post I found this , not that it was hard to find.

https://www.ebay.com/help/selling/fees-credits-invoices/selling-fees?id=4822

So with PP it was 10% plus 2.9% = 12.9%

Now its 12.4% + the 30 cents as always. So according to that its about 50 cents cheaper per 100 dollars. Unless with comics they charge 14.4%  now. It says for books,dvd's, movies, ect they charge that %. Hope the heck not. 

Do you know if you can now transfer a specific amount of your money from ebay to your bank account like you can with PP? Or do they automatically send it all to your bank account after a certain time? Basically do you have an option of not having it all put in your account in one lump sum?

It's the lower (12.4%) rate for comics (not 14.4%).  There are a few other annoying fees that I've noticed (could be some that I'm missing, but just noticed these): 1.6% (?) international transaction fee (so if it's a Canadian buyer, you'll pay an extra 1.6% I believe on the sale), and also you are paying the final value fee rate (so just say 12.4%) on the sales tax (which is so stupid, but that's the way the system is set up right now).  So if it's a $100 sale and the buyer pays $10 in sales tax, your fees would actually be: 12.4% (x $100) plus 30 cents plus 12.4% of $10 = $13.94 total.  

The old system was better, but it's not 'that' much worse to make a huge difference really.  

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2 minutes ago, Action252Kid said:

It's the lower (12.4%) rate for comics (not 14.4%).  There are a few other annoying fees that I've noticed (could be some that I'm missing, but just noticed these): 1.6% (?) international transaction fee (so if it's a Canadian buyer, you'll pay an extra 1.6% I believe on the sale), and also you are paying the final value fee rate (so just say 12.4%) on the sales tax (which is so stupid, but that's the way the system is set up right now).  So if it's a $100 sale and the buyer pays $10 in sales tax, your fees would actually be: 12.4% (x $100) plus 30 cents plus 12.4% of $10 = $13.94 total.  

The old system was better, but it's not 'that' much worse to make a huge difference really.  

Oh! Oh! Oh!.........wait one more, no I'm done.

You get charged 12.4% on the sales tax also? Has it always been like that (since ebay started working for the IRS and collecting sales tax a few years back)? 

I can't see any legitimate reason for a seller to have to pay fees on sales tax that the buyer is responsible for. 

Oh! 

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52 minutes ago, Professor Chaos said:

Oh! Oh! Oh!.........wait one more, no I'm done.

You get charged 12.4% on the sales tax also? Has it always been like that (since ebay started working for the IRS and collecting sales tax a few years back)? 

I can't see any legitimate reason for a seller to have to pay fees on sales tax that the buyer is responsible for. 

Oh! 

There is a new thing called Simplified Fees.  Some parts of the transaction had fees (item and shipping) while the tax did not.  EBay wanted to take the whole transaction and multiply by a single number.  So that meant including the tax, if any.  To compensate, they dropped the entire FVF by 0.5%.  It works out about the same, except now people are up in arms that they are charging a fee on the tax.  It's just a mathematical adjustment, a wash.  They are not really charging a fee on the tax, just rolling the tax amount into the total to arrive at roughly the same amount.  Some might actually pay less in fees if they ship to low or no tax states.

 

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1 hour ago, Professor Chaos said:

Do you know if you can now transfer a specific amount of your money from ebay to your bank account like you can with PP? Or do they automatically send it all to your bank account after a certain time? Basically do you have an option of not having it all put in your account in one lump sum?

As you make sales, some of it processes at different lengths of time.  Of yesterday's sales, some will clear right away, some a day later, and occasionally 2 days later.  It's all dependent upon the funding source.  There's no control of that.  As funds clear, they become available for transfer, and move to your account right after, usually the next business day.  So there's no way to set an amount to move.  The only thing you can choose is daily transfers or weekly transfers.  The weekly happen on a Tuesday for everyone, no choice of days.

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I just stumbled on this thread.  I sell a bit on eBay, I haven't done anything related to signing up for managed payments, and just sold an expensive book about a week ago, was paid and it went directly into my PP account as it has always done.

I'm yet to be billed by eBay for the normal month end fee, but I certainly wasn't forced to change anything and haven't seen any disruption as a result... 

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4 hours ago, MustEatBrains said:

I just stumbled on this thread.  I sell a bit on eBay, I haven't done anything related to signing up for managed payments, and just sold an expensive book about a week ago, was paid and it went directly into my PP account as it has always done.

I'm yet to be billed by eBay for the normal month end fee, but I certainly wasn't forced to change anything and haven't seen any disruption as a result... 

same here

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5 hours ago, MustEatBrains said:

I just stumbled on this thread.  I sell a bit on eBay, I haven't done anything related to signing up for managed payments, and just sold an expensive book about a week ago, was paid and it went directly into my PP account as it has always done.

I'm yet to be billed by eBay for the normal month end fee, but I certainly wasn't forced to change anything and haven't seen any disruption as a result... 

Same here but thats because it hasn't been fully implemented yet. Only those who already registered are currently using it. The messages I've received from e bay say that if I haven't "registered" for managed payments by November ......... Well here it is -

"Starting this November, eBay will manage your payments. Now’s the time to join thousands of sellers by registering for the simpler way to do business on eBay. Make sure you register by October 15, 2020 to ensure there’s no interruption to your selling."

Translation- Follow the herd like good livestock. Its simpler because you're too stupid and lazy.  And if you don't do it by 10/15 you're screwed so you have no choice either way. Take it or leave it sucker.

Pretty sure that come November you can't sell unless you register and say goodbye to using paypal for ebay.

Edited by Professor Chaos
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5 hours ago, Lightning55 said:

There is a new thing called Simplified Fees.  Some parts of the transaction had fees (item and shipping) while the tax did not.  EBay wanted to take the whole transaction and multiply by a single number.  So that meant including the tax, if any.  To compensate, they dropped the entire FVF by 0.5%.  It works out about the same, except now people are up in arms that they are charging a fee on the tax.  It's just a mathematical adjustment, a wash.  They are not really charging a fee on the tax, just rolling the tax amount into the total to arrive at roughly the same amount.  Some might actually pay less in fees if they ship to low or no tax states.

 

Thanks for that info and explanation. To me people should be up in arms for being charged a fee for sales tax that doesn't go to them at all. And I bet the way its set up you'll get charged federal tax on the sales tax they charge the buyer. With over 10 trillion dollars in new debt in 6 months time, the Federal Reserve is going to want some return on that money they printed out of thin air. And thats what the IRS is there for.   Also the final fee didn't drop it was raised 2.4%. Sure we are still paying about the same but ebay is making billions more a year on the deal. 

Thanks for the detailed info.

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9 hours ago, Professor Chaos said:

Yeah the fees always seem higher than what they say they are on paper.

After my previous post I found this , not that it was hard to find.

https://www.ebay.com/help/selling/fees-credits-invoices/selling-fees?id=4822

So with PP it was 10% plus 2.9% = 12.9%

Now its 12.4% + the 30 cents as always. So according to that its about 50 cents cheaper per 100 dollars. Unless with comics they charge 14.4%  now. It says for books,dvd's, movies, ect they charge that %. Hope the heck not. 

Do you know if you can now transfer a specific amount of your money from ebay to your bank account like you can with PP? Or do they automatically send it all to your bank account after a certain time? Basically do you have an option of not having it all put in your account in one lump sum?

They transfer all the money that has cleared the process. If you sell a book today that sale will not be included in a transfer happening in the next few days. Once it clears it's "available". They break it out for you to see. I have had no problems yet.

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Whenever I have paid for a comic that I've won, I get 3 options for a way to pay...CC, PP, or PP credit. If I ever buy from a seller who has opted into the managed payments will those options be different?

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9 hours ago, Lightning55 said:

There is a new thing called Simplified Fees.  Some parts of the transaction had fees (item and shipping) while the tax did not.  EBay wanted to take the whole transaction and multiply by a single number.  So that meant including the tax, if any.  To compensate, they dropped the entire FVF by 0.5%.  It works out about the same, except now people are up in arms that they are charging a fee on the tax.  It's just a mathematical adjustment, a wash.  They are not really charging a fee on the tax, just rolling the tax amount into the total to arrive at roughly the same amount.  Some might actually pay less in fees if they ship to low or no tax states.

 

That's really a great way to sum it up.. 0.5% lower FVF, but pay FVF on the sales tax, ends up being a wash on average.  Not surprised that it annoys people though, because at first glance, it seems like they added in a new fee (which like you said doesn't even apply all the time).. a number of people are in zero sales tax states or have resale certificates on file, so you end up saving the .5% on some listings, while paying a little extra on sales to states with higher sales tax rates.

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1 hour ago, Gaard said:

Whenever I have paid for a comic that I've won, I get 3 options for a way to pay...CC, PP, or PP credit. If I ever buy from a seller who has opted into the managed payments will those options be different?

No.  You have those options, and a couple more that weren't there before.  ApplePay and something else, I can't remember what it is.

Edited by Lightning55
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4 hours ago, Professor Chaos said:

Thanks for that info and explanation. To me people should be up in arms for being charged a fee for sales tax that doesn't go to them at all. And I bet the way its set up you'll get charged federal tax on the sales tax they charge the buyer. With over 10 trillion dollars in new debt in 6 months time, the Federal Reserve is going to want some return on that money they printed out of thin air. And thats what the IRS is there for.   Also the final fee didn't drop it was raised 2.4%. Sure we are still paying about the same but ebay is making billions more a year on the deal. 

Thanks for the detailed info.

People should NOT be up in arms.  They are charging the fee on the sales tax as a math thing, and giving it back in the rate.  It's NOTHING.

You are charged Federal Income tax on what you EARN.  There is no way you are earning the sales tax the buyer pays.  It is taken out of the transaction prior to disbursement of proceeds, which you receive.  You have expenses to post against the proceeds.  What you have left is your income that is taxed.  Nothing has changed.

The fee is up 2.4% because it includes the processing that used to cost 2.9% through PayPal.  EBay is making more on SOME transactions, not all.  If someone pays eBay for an item through PayPal, PayPal is still getting their fee, presuming they are charging eBay's PayPal account like any other merchant's account.  They may have some kind of volume arrangement, but I don't suspect that PayPal will be too amenable to providing that since they are cutting them out in other ways. 

EBay and PayPal both have to pay the CC companies about HALF of the 2.9%, so the 2 dogs are tugging on the 1.45% margin.  Don't get me wrong, it's a lot of money, but it's not OUR money.  They're just beating each other up. 

If someone pays with a credit card directly, not using PayPal, eBay would make the 1.45% after paying the CC company (or whatever rate they have negotiated with them).  Same for whatever is left after covering ApplePay fees.  And they have to pay AdYen for doing the payment work in the background.

EBay used to let PayPal have this money because they had bought PayPal.  Either way it went to eBay, one pocket or the other.  When they split, eBay had to wait 5 years by agreement before starting to do its own payment processing.  That time has come, and they are doing it because they can, and because they want that money.  A no-brainer business decision.

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