topic Re: Basic, dumb question about managed payments in Selling

Basic, dumb question about managed payments

lupercal — Tue, 07 Jul 2020 10:08:40 GMT

Sorry, I've been following the long thread on this topic on and off, and have trawled through it to some extent but it's too disjointed for me to find this info if it's there. I also tried ciustomer support, but just had support staff vanish mid-chat.

I'm just trying to understand how credits and debits work once you've switched to direct payment into your bank account.

There are a few things I don't really understand, but the one I really want to know is how purchases are handled.

At the moment when I buy something on ebay, unless it's a very big ticket item it just comes off my Paypal balance..Are purchase payments now supposed to come directly out of my bank account, or my credit card?

Of less concern, are FVFs now going to be just deducted from payments before they go into my bank account, or will there still be a monthly account including my store fee?

Gah, it's so simple with Paypal. Everything happens in the same place, and I get to decide when money moves in or out of my bank account.

Thanks

Re: Basic, dumb question about managed payments

twyngwyn — Tue, 07 Jul 2020 10:15:56 GMT

yes, you can still use PayPal to buy.....but if you're a seller payments will be sent to your bank account

Re: Basic, dumb question about managed payments

lupercal — Tue, 07 Jul 2020 11:40:50 GMT

Thank you for that. Nce to have that cleared up.

Though I'm still a little confused about the relationship between eBay and Paypal in this. Purchases can come out of my Paypal balance, but payments bypass it? I thought the new higher ebay fees were offset by not having third party fees. So what happens with Paypal's usual fee- it's absorped into eBay's fees?

Re: Basic, dumb question about managed payments

davewil1964 — Tue, 07 Jul 2020 12:38:39 GMT

That would be between eBay and Paypal, and Afterpay, and CC companies, and I doubt any of them will be telling

Re: Basic, dumb question about managed payments

digital*ghost — Tue, 07 Jul 2020 12:48:08 GMT

If you continue to use PayPal when you pay for items but no longer have funds in the account, your secondary funding source(s) will be used - these can be set up in your PayPal account, where you'll be able to nominate the default funding source, but at checkout you can also switch to any funding source already connected to that account.

For example, I currently have funds in my PayPal account and it's the default funding source, however if I was buying something, just after logging in I can either continue on and have the payment debited from my available funds in PayPal, or I can switch it to my Visa debit card so the money comes from that account instead, or I can select my third funding source which is a bank account (that one will be processed as an eCheque).

eBay will be deducting FVF's automatically from payments, but not any of the other fees (as far as I know), so you will either need to make a manual payment for that, or allow for it in whatever automatic billing method you currently have set up.

In real terms, the biggest change for most people will be not having funds from a sale instantly accessible to spend - a bit like the old days, before PayPal was accepted by every second business in Aus and you often had to withdraw it to make use of it anyway.

I suspect that eBay will be looking at ways for funds accrued within an eBay payments account to be spent on eBay - this may start with subscription fees, postage labels and listing upgrades, but might extend to being able to pay for purchases as well. They have already planned a loan service to take the place of PayPal's working Capital loans so I'm guessing they want as many fingers in as many pies as they can possibly have.

Re: Basic, dumb question about managed payments

lupercal — Tue, 07 Jul 2020 15:41:31 GMT

Thanks, but I don't think I've explained my question very well.

Part of eBay's justification for their new higher fees under the upcoming system is that you won't be paying third party fees any more. So If a buyer can still go through Paypal, where are Paypal's fees coming from? Are we going to get double-dipped afterall, paying Paypal fees and increased eBay fees?

Re: Basic, dumb question about managed payments

digital*ghost — Tue, 07 Jul 2020 16:04:37 GMT

@lupercal wrote:
Thanks, but I don't think I've explained my question very well.

Part of eBay's justification for their new higher fees under the upcoming system is that you won't be paying third party fees any more. So If a buyer can still go through Paypal, where are Paypal's fees coming from? Are we going to get double-dipped afterall, paying Paypal fees and increased eBay fees?

eBay are paying the fees, because they will be the one being paid the money that comes through PayPal.

Whatever the fee percentage eBay will be charged by PayPal (or Apple Pay, or credit card companies) is both unknown and irrelevant to sellers, it's all covered by the single, but higher FVF sellers will pay once switched over to managed payments (for some sellers, the new combined FVF will be a fraction of a percent cheaper than current ebay fees + PayPal fees, for others it will be slightly over).

Re: Basic, dumb question about managed payments

bikeden — Wed, 08 Jul 2020 00:07:52 GMT

Basically sellers will be charged same fees as before. eBay are now taking a cut of those fee's for themselves having negotiated a discount from the payment services, PayPal, credit cards companies and 'ForeverPay'

Managed payments are a win for eBay and no benefit to sellers.

Re: Basic, dumb question about managed payments

lupercal — Wed, 08 Jul 2020 07:32:36 GMT

@digital*ghost wrote:
@lupercal wrote:
Thanks, but I don't think I've explained my question very well.

Part of eBay's justification for their new higher fees under the upcoming system is that you won't be paying third party fees any more. So If a buyer can still go through Paypal, where are Paypal's fees coming from? Are we going to get double-dipped afterall, paying Paypal fees and increased eBay fees?
eBay are paying the fees, because they will be the one being paid the money that comes through PayPal.

Whatever the fee percentage eBay will be charged by PayPal (or Apple Pay, or credit card companies) is both unknown and irrelevant to sellers, it's all covered by the single, but higher FVF sellers will pay once switched over to managed payments (for some sellers, the new combined FVF will be a fraction of a percent cheaper than current ebay fees + PayPal fees, for others it will be slightly over).

Ok, that makes sense - cheers.

Re: Basic, dumb question about managed payments

tentrees123 — Thu, 09 Jul 2020 01:11:28 GMT

I'm thinking we will no longer receive payments in our Paypal accounts - it will all come through eBay and after they have taken out their charges for 'managing' our payments (which the buyer may have paid via PayPal or credit card etc) in a day or two it will then be available to us and paid into our bank accounts at a nominated time. We will still have monthly invoices to pay - for Store fees, listing fees and FVF's. Think we can still pay this with PayPal but since none of our ebay sales money will be paid into our PayPal accounts anymore, we'll end up paying it from our bank accounts.

My gut feeling is it will cost us more -if you ever received direct deposit payments, eBay will now 'manage' them and charge the fee for doing so - so where once we saved a bit by not having to pay PayPal fees on these transactions, we will now pay fees to eBay for the privilege.

All for our own good of course....

Re: Basic, dumb question about managed payments

bikeden — Thu, 09 Jul 2020 02:17:24 GMT

If Managed Payments include a direct debit with our bank account, then they can take funds, fees, returns as they wish. I would be happier having a credit card for debits as it gives you a security layer with your card provider to dispute eBay.

Re: Basic, dumb question about managed payments

dsfasteners — Sat, 11 Jul 2020 11:02:43 GMT

My understanding is ebay FVF is deducted at time of transaction and the remainder is paid into your bank account. I can see this creating an accounting nightmare, Interested in how people are going to record this, Before we just invoiced the customer the full amount and processed the payment as going direct to our paypal account. Now if we invoice say $100 dollars to the customer, we could process their payment direct to bank account as that is where it will end up but then ebay will take for example sake 10% so we only receive $90 into our account, obviously that won't reconcile. So there will have to be a running Bill for ebay against that and I could go on but you probably get the picture. Just one monthly bill was a lot easier.

If its not broke don't fix it

Re: Basic, dumb question about managed payments

davewil1964 — Sat, 11 Jul 2020 11:48:46 GMT

@dsfasteners wrote:
My understanding is ebay FVF is deducted at time of transaction and the remainder is paid into your bank account. I can see this creating an accounting nightmare, Interested in how people are going to record this, Before we just invoiced the customer the full amount and processed the payment as going direct to our paypal account. Now if we invoice say $100 dollars to the customer, we could process their payment direct to bank account as that is where it will end up but then ebay will take for example sake 10% so we only receive $90 into our account, obviously that won't reconcile. So there will have to be a running Bill for ebay against that and I could go on but you probably get the picture. Just one monthly bill was a lot easier.

If its not broke don't fix it

There is an eBay facility called account. It's amazing what you'll find in there - even line items for sales and postage fees.

At the moment you have TWO sites that you need to reconcile. eBay for the FVFs and Paypal for the payment. Are you deliberately trying to muddy the waters?

It's irrelevant anyway. Once you are opted into managed payments, that is what you will have to work with if you wish to continue selling on eBay.

Re: Basic, dumb question about managed payments

dsfasteners — Sat, 11 Jul 2020 12:46:26 GMT

No need for sarcasm, I was just wondering how other people go about it.

On another note yes unfortunately we will just have to wear the changes, including the fact that now that ebay includes the paypal fees in the FVF we now effectively pay paypal fees on everything inc;uding direct debits and even cash on pickup,

Re: Basic, dumb question about managed payments

davewil1964 — Sat, 11 Jul 2020 13:04:43 GMT

eBay do not include the Paypal fees in the FVF. At this point. We have yet to know what will happen with MP, given it hasn't actually been implemented yet.

What will happen presumably, nobody knows as it is not a thing yet, is that the buyers funding source won't make a difference to the fees eBay charges. So, yes, it may well be that the fees won't be reduced for bank deposit or COP.

I will wear the hit, as less than 1% of my sales use those payments. Others might have to look at their business models if a few percent in extra fees is a deal breaker. Or add 1%(?) to their prices to compensate.

Re: Basic, dumb question about managed payments

dsfasteners — Sat, 11 Jul 2020 13:27:32 GMT

They have set the new fees

Direct from ebay

The eBay final value fee for managed payments sellers is made up of a variable percentage of the total amount of the sale that varies by category and eBay Store tier, plus a fixed $0.30 per order.

For sellers without an eBay Store subscription, the variable percentage for all categories will be 13.4%.

This is up from 10.9% plus the 30 cent transaction fee paypal charges

It goes on to give fees for stores, all percentages have been marked up to accomodate paypal fees

I too don't do a lot apart from paypal but I guess a few would,

Re: Basic, dumb question about managed payments

davewil1964 — Sat, 11 Jul 2020 13:48:39 GMT

Plus the 2.6% Paypal charges.

It seems, from those other threads, that that is pretty much equivalent to what the eBay plus Paypal charges are now.

So, as I said a one-stop shop for fees, rather than the current 2. Thus less time spent reconciling the fees.