New eBay payment system: Everything You Need Know

New eBay payment system: Everything You Need Know
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Last Updated on May 29, 2021 by Melissa S.

 

Noticed the payment system is changing on eBay? If you’re an eBay seller, you may have already received an invitation to update your payment methods. But what is the new eBay managed payment system and why is it changing? Here’s everything you need to know.

new ebay payment system
Photo by Andres Ayrton on Pexels.com

What is the new eBay payment system?

Historically, the only way for sellers to get paid was via Paypal. Late in 2020, eBay announced that they would be switching over to a managed payment system in order to simplify and improve their user experience. This means that instead of being paid into Paypal, sellers will receive their payments directly into their bank.

Sellers will gradually be asked to switch over to the new managed payment system meaning that by the end of 2021, Paypal will be phased out as a way of sellers receiving their money.

Can I still use Paypal as a buyer?

Yes – Paypal can still be used to purchase items on eBay if you are a buyer. The option to pay using Apple Pay and Google Pay will also be added for buyers in this new rollout, as well as the existing methods of cash and bank card.

new ebay payment system

Are the eBay seller fees different with the new payment system?

Yes – and no. Currently, eBay take a flat 10% fee from each sale price (including postage) while Paypal take a 2.9% cut, plus 30p on every sale. Under the new eBay payment system, eBay will take 12.8% plus a 30p fee.

This means that sellers will be a massive 0.1% better off under the new payment system! Woohoo! (Can you hear the sarcasm through the screen?)

However, if you are a seller who often receives cash payments via collection in person, you may find yourself worse off. Previously, cash payments would avoid the 2.9% Paypal fee, meaning a 10% fee instead of 12.9%.

Will sellers still receive their payments instantly?

No! And this is probably the biggest drawback for eBay sellers in my opinion. Payments will now take up to 2 working days to reach your bank account.

This will potentially lead to delays for buyers in receiving their items as sellers are unlikely to post the goods until the payment has cleared, especially if the payment includes the postage costs that the seller would otherwise need to cover out of their own money.

new ebay payment system
Photo by Andrea Piacquadio on Pexels.com

Will my payment as a buyer still be taken instantly?

Yes – like with most payments, the money will leave your account instantly in the usual way, but could take up to 2 working days to reach the seller.

I’m an eBay seller but I’m still on the old system – how do I update it?

eBay hopes to have converted everyone over to the new payment system by the end of 2021, so if you haven’t received an invitation yet, you don’t need to take any action until you do. Once you get an invitation, you simply need to register the bank details in which you would like to be paid.

Speaking from personal experience, once you get invited to switch over, they will remind you several times a week via notifications and emails until you do!

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Can I opt out of this new eBay payment system as a seller?

No – it is a mandatory change and once opted in, sellers cannot revert back to being paid via Paypal. eBay is phasing this method of payment out for sellers so by the end of 2021 it will no longer be an option for any seller – whether private or business.

My top tips for sellers using the new eBay payment system

Changing over to the new eBay payment system is simple enough, but there are still some ways to smooth the process and save on fees where possible.

Set up a dedicated bank account for eBay sales

Most eBay sellers liked to keep their money separate from their day to day bank account and Paypal allowed us to do this effortlessly. I would recommend setting up a second bank account to receive your seller payments simply so you can keep track more easily.

I use the bank account I set up for Matched Betting for this, but if you don’t have a separate account, I would recommend an online smart bank such as Starling or Monzo for this.

Take advantage of £1 selling fee offers

In order to claw back some of those 12.8% fees, consider listing items during these promotional periods. They tend to be offered over the “long weekend” period between Fridays and Mondays several times a year. Sometimes these promotions are only offered to certain sellers, so be sure to check your emails to make sure you don’t miss out.

ebay managed payment

Wait until the payment has reached your account before sending

For your own peace of mind and security, do not send the items until the payment has cleared. A buyer may decide to cancel their order (either genuinely or as an attempted scam) and if you have already posted the item then it will be a lot more difficult to rectify.

Communicate with your buyer 

The changing eBay payment system may take some getting used to for both sellers and buyers, who are used to instant payments and speedy deliveries, therefore communication is key. Dropping your buyer a friendly “Thanks for your purchase” note explaining that the item will be shipped once the payment has cleared lets them know the reasons for any possible delay.

What are your thoughts on the new eBay payment system? Let me know in the comments.

Other posts you may like:

How I made over £1000 selling old clutter on eBay

5 insanely easy eBay beginner tips

Make money on eBay selling actual junk!

Is it worth selling old CDs on eBay? (The answer might surprise you!)

ebay managed payment

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