Basic, dumb question about managed payments

[lupercal]

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

[offroad7400]

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.

[dsfasteners]

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

[davewil1964]

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@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

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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.

[dsfasteners]

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, 

[davewil1964]

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.

[dsfasteners]

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, 

[davewil1964]

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.