Managed Payments First Sale Fees Cost More - DEFINITIVE

[waddingtonfirstaid]

As expected, our first ever sale under the new Managed Payments cost us more in fees.

The whole hype about it being better for us, especially the claims about being cheaper, are utterly and definitively FALSE as noted by our very first sale.

You would have thought, with such a grand change to the way eBay went about this change, they would have ensured everyone shared in a financial benefit. But no, we've been difinitively conned. This is the true face of the entity we deal with which put manager bums on cushy chairs, the very people who rely on their own exisitance is us, the sellers, who have been totally and shrewdly conned. We had it pretty well worked out in a thread several months ago and obviously eBay management couldn't have cared less, but now it's definitive.

$24.95 sale on 7th June 2020 just before Managed Payments switched on:

eBay FVF (Final Valuation Fee): $2.61

Paypal Fee: $.95c

Total of Fees: $3.56

Amount instantly appearing in my Paypal account on 7th June 2020: $24.00

Amount I actually received after eBay fee statement paid: $21.39

$24.95 sale just after Managed Payments switched on:

eBay Managed Payments Fee including FVF: $3.60

Amount I'm due (eBay "Payout is on it's Way" email notification came in 4 days after the sale and advises it will be another 3 - 4 days until I have the money in my bank account) in a week or more time: $21.35

.04c mightn't seem like a lot but we are talking about a very modest sale. Where the .04c speaks volumes is how a large entity like eBay, couldn't have the decency to ensure it would be at least a .04c saving rather than an impost that goes against all the Managed Payments hype they landed upon us. If they were really intent on making things beneficial for us, they would have made sure it really was.

Not only am I paying more in fees, I have to wait over a week for the money I'm left with (yes, we have it set to "daily" transfer as per eBay assistance during a lengthy phone call from eBay to us. Moreover, the Managed Payments come through in lump sums, an absolute nightmare for reconciling against individual invoices. For sellers who may use Xero Accounting, there is no mention of an eBay-Xero developed reconciliation portal for this to be reasonably automated. This alone will force a lot of sellers out of eBay.

[joz15au]

It may also depend on what method the buyer uses to pay. When paid through PayPal via echeque clearance could take almost a week. I have not received anything saying "you have access to these funds", just a notification of payout saying that it may take 3-4 days to reach my account but funds have cleared to my account by the next day.

[tropical_scene]

PayPal transfer funds appear in my bank account the very next day.  I have not received any funds from the eBay managed payment system after several days.

[lyndal1838]

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@tropical_scene wrote:

PayPal transfer funds appear in my bank account the very next day.  I have not received any funds from the eBay managed payment system after several days.

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As I said, my paypal funds have always appeared overnight but there have been plenty of posters on the boards who complain that they have had to wait several days for their funds to hit their bank accounts.

By the same token, I have seen posters state that they have set their accounts for ebay to transfer funds on a daily basis and they get the funds overnight.

[tropical_scene]

My ebay account is set to transfer funds on a daily basis, but sales from 6.00am Thursday morning have still not reached my bank account and are still only marked as processing in my "eBay financial summary".  This is a fact, I'm not repeating heresay.

[wide-world-of-stamps]

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@tropical_scene wrote:

My ebay account is set to transfer funds on a daily basis, but sales from 6.00am Thursday morning have still not reached my bank account and are still only marked as processing in my "eBay financial summary".  This is a fact, I'm not repeating heresay.

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Yes, ours are the same. 

Sales from Monday, Tuesday and Wednesday changed to completed withing 24-36 hours, and funds have been transferred to our bank account.

Time from transfer email to receipt in bank account approx. 7 hours (3.42am email, 10.47am credit to bank account).

However Thursday's sales are all still processing, along with Friday's and todays.

We're not desperate for the funds, but would like the transfers to all follow the one pattern.

[hobby_cds]

Our paypal funds are there the next day as well never had an issue with that. I am referring to the managed payments with the ""you have access to these funds" status from ebay. E-Cheques in our experience are a may once every two month thing,

When you move onto managed payment you will see what I mean

[lyndal1838]

It looks to me that the sticking point is the length of time for funds to clear to ebay before ebay transfers those funds.

It has always been a known fact that payments funded by a bank account can take several days to clear and even longer if the buyer does not have enough funds.

As a buyer I always pay by debit card and it is not unknown for the funds to be taken from the bank account that the card is attached to with the slower clearance time, even though there is a full blown credit card attched to the account as well.

The funds clearing to ebay has no bearing on the time taken for ebay to transfer the funds to your bank account.....they will not transfer them till they have cleared.

[*tippy*toes*]

I had a sale tonight. Paid by PayPal. Instant payment. I am not on Managed Payments yet (haven't even had a single email about it, I only know about it because of the forums). I will post Monday. I will probably use the funds in PayPal to buy a pizza next week when Mr Tippy is on a late shift.

I am not looking forward to the forced payiment thingy,

Edited to add:. The email from ebay said the person had paid, but no address or anything in the message. In fact, the email was no different to what I've been getting for however long.

[digital*ghost]

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@lyndal1838 wrote:

It looks to me that the sticking point is the length of time for funds to clear to ebay before ebay transfers those funds.

...

The funds clearing to ebay has no bearing on the time taken for ebay to transfer the funds to your bank account.....they will not transfer them till they have cleared.

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I snipped the middle as these were the only two points I wanted to reply to.

If the buyer's payment doesn't clear instantly, I presume it doesn't shift to the "awaiting postage" section, unless eBay is going to be happy to cover all payments that bounce after telling sellers to post items without them actually receiving cleared payment, so the funds clearing to eBay is not the bone of contention, rather it's the amount of time it takes for cleared funds to become available to sellers to initiate a transfer to their bank account

I've only been on MP since Thurdsday (was switched later Wednesday night), and all of my payments since then, while cleared (in the sense eBay told me they're ok to post), but none of the funds have become available to transfer. Going by some other posts / info, it seems I should expect Thursday's funds to become available on Monday, and Friday's to become available on Tuesday, at which point they will pay out to my bank account and take X time to hit that (mine is being paid to a Commonwealth account, so I expect it will be in the next day). 

That is extremely slow in comparison to other systems established elsewhere. On Et*y, for example, the funds become available to transfer the next day, without fail, even over weekends, and even if the order was made one hour before it's the next day (at least, for sellers who have been operating for 3+ months. New sellers have to wait 7 days for funds to become available, for the first 3 months). Over there, you can also receive orders where - for one reason or another - the payment doesn't instantly clear, and in that case it's marked with "not Paid" in red, and you are advised not to ship (there aren't awaiting payment and awaiting postage tabs like there is here, unless you create them and manually shift unpaid orders over). 

This is actually an issue with eBay - the verification of an online payment either happens instantly or it doesn't. If it happens instantly, eBay obviously tells the seller to post. If it doesn't, then it should be either a declined payment, or awaiting payment (orders that were paid for via eCheque prior to MP were always in "awaiting payment" until the eCheque cleared, then they shifted to awaiting postage). 

I've mentioned before that this isn't an issue for me, but I feel that's a relatively lucky position to be in, and while waiting up to around a week to have access to cash may not be a huge imposition for some, for others it has at least the potential to make things harder, and in any case, it's a fairly big step back from the availability / accessibility of funds via PayPal. 

[joz15au]

I'm not sure why you have assumed I am not already on Managed Payments, after I specifically noted how these payments have been received by me.  I have been on MP on my store account since 31/07 and on this one (although I sell very little on here) since 3/08.  I wouldn't post in a thread about Managed Payments if I wasn't on them.  So far the only payments I haven't received are for sales made on Thursday and Friday, which if it follows last week's pattern, will probably shown in my bank account on Tuesday.   I wasn't suggesting that all of your overdue payments were because of echeques, I just gave this as an example of why some buyer payments may take longer to clear than others.  Payments through After Pay might be another (I don't know that for a fact but it would seem reasonable).  Regardless, as sellers we are probably just going to have to like it or lump it because I doubt that eBay is going to care about any complaints, and will continue on their merry way as usual.