blog post - ebay move from PayPal to Adyen

[lm-entertainment]

i read an interesting blog post regarding the change in payment processor which is coming and thought I could post it here since it's on an ebay-supported website (CrazyLister). mods, if this isn't allowed, i sincerely apologise - i couldn't see any blatant ruling in the board content policy preventing me from posting it. 

a while back, news broke of the intention of ebay to change it's main payment processor from PayPal to Adyen. this is due to take place by 2021 and all sellers will eventually have to transition. 

the blog post examines and answers some questions regarding the payment processor and how the transition might work - https://crazylister.com/blog/adyen-payments-ebay/

from my perspective, there are many unanswered questions and concerns which i guess, will become clear in due time. 

[chameleon54]

$120 U.S dollars, minimum monthly fee ???, Three selling accounts $360 U.S ????  Did I misread that ???  ( maybe they mean $120 U.S per month in gross sales turnover, but it doesnt quite read like that )

If I read that correctly its going to knock a lot of small sellers out and force slightly larger sellers to consolidate selling id,s You would need to be turning over $4500 U.S + per month to break even with paypal as it is set up now.

[chameleon54]

Copy & Paste from the article

What about monthly fees?

While I was doing my research to write this post I noticed many people asked about monthly fees and found that Adyen does charge a minimum invoice of €100 ($120 U.S.) per month, depending on transaction volume and region.

They don’t call it a monthly fee because you don’t have to pay extra if your sales volume reaches $120 per month.

In my prime days as an eBay seller I was paying Paypal fees of around $8000 every month (!), so paying just $120 sounds like a great opportunity to save A LOT of fees for high volume sellers.

[go-tazz]

Sounds like another attempt to get rid of the smaller sellers,(which includes me),

If I don't sell stuff on eBay I don't buy stuff on eBay,( I suspect other small sellers do as well so they will/might

lose that side of their business as well),

It has/will be fun while it lasts but I would never sell enough each month to justify a monthly fee,

[lyndal1838]

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@chameleon54 wrote:

Copy & Paste from the article

What about monthly fees?

While I was doing my research to write this post I noticed many people asked about monthly fees and found that Adyen does charge a minimum invoice of €100 ($120 U.S.) per month, depending on transaction volume and region.

They don’t call it a monthly fee because you don’t have to pay extra if your sales volume reaches $120 per month.

In my prime days as an eBay seller I was paying Paypal fees of around $8000 every month (!), so paying just $120 sounds like a great opportunity to save A LOT of fees for high volume sellers.

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That reads to me as they charge a MINIMUM of US$120 per month.   If you earn more then you pay more.

[davewil1964]

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@chameleon54 wrote:

$120 U.S dollars, minimum monthly fee ???, Three selling accounts $360 U.S ????  Did I misread that ???  ( maybe they mean $120 U.S per month in gross sales turnover, but it doesnt quite read like that )

If I read that correctly its going to knock a lot of small sellers out and force slightly larger sellers to consolidate selling id,s You would need to be turning over $4500 U.S + per month to break even with paypal as it is set up now.

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For Asia-Pacific a minimum invoice of $US1000 applies

[joztamps]

The question is whether those standard fees will apply in ebay's "intermediated payments model”, ie whether or not ebay has negotiated a fee structure of comparable amounts to the current paypal.

Does anyone know whether that sort of minimum monthly fee applies on etsy, which apparently uses Ayden as its processor?

If the monthly minimum fee does apply, whether it be $120 or $1000, it would obviously be the end for the overwhelming majority (by numbers) of sellers.

[digital*ghost]

I'm going to go out on a limb and suggest the monthly fee is for the merchant, not individual sellers. The writer of the article seems to think that a monthly fee of $120 is all that they'd pay and it would cover all of their payment processing fees? Someone in ecommerce should know better, lol. 

eg Say I went to Adyen to do payment processing on my own site, I might be up for the fee if my volume didn't reach the minimum payment value. In this case eBay is the website owner, and I think the volume of payment processing is going to far exceed whatever Adyen's minimum is. (The article mentions Adyen does Etsy's payment processing - did they not think to just ask one Etsy seller how things work? There's quite a lot of us  ). By the way, Etsy's payment processing fees are more expensive than PayPal's, even after PayPal withdrew the volume discount, and I expect eBay's will be too (despite their claim of "cheaper for most" when the annoucement was first made). 

The two most serious issues surrounding the switch for me are - Adyen, and / or eBay not being subject to Australian regulations, or answerable to FOS, and what seller protections will be available. No more PayPal will obviously mean no more opportunity for proof of shipping to suffice in cases of INR, but what about credit card chargebacks? 

(PS Sellers in the US have been able to opt in to the new payment processing system, you can read a bunch of forum posts here: https://community.ebay.com/t5/Payments/bd-p/payments-db )

[lyndal1838]

Digi, I think you will find that ebay/Adyen will have to be registered with APRA as paypal is.

[digital*ghost]

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@lyndal1838 wrote:

Digi, I think you will find that ebay/Adyen will have to be registered with APRA as paypal is.

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Etsy isn't. 

There is a slight difference there as they don't actually have a .com.au site, but the key differnce is that PayPal operates in Australia via an independent, .com.au site, and as a financial institution are subject to Australian regulations. Adyen does not have a .com.au site, and they don't hold funds, just process them. 

I hope that means ebay will have to be whereas Etsy don't, but I don't know enough about the industry, I only know enough about eBay to be greatly concerned that they will be able to 'manage' my payments.