Should I delay participation in Managed Payments?

[WBird]

I just got the email that I am being encouraged to sign up now for Managed Payments and that it will be required by July. For those of you in it already, what would you advise? Should I jump in or hold out?

[Jay]

We received the same email. We’re going to wait till its the final warning.

[Sharyn]

My interpretation of the email was that they were moving me over to managed payments in July. They wanted me to give them information so that the transition was smooth. But, I didn’t see that I had a choice.

That’s what I think they are saying. I could be wrong.

[Jay]

Here’s the email:

Managed payments supports an enhanced buying and selling experience on eBay, providing sellers one place to sell and get paid, and buyers more ways to pay. eBay will manage payments for most sellers in 2020, and your account, ryannesvintage, will be activated for managed payments starting late July. To ensure you are ready in advance of the change and that there are no interruptions to your business, you will need to register by July 15th, 2020.

Please click here to register for managed payments today.

What are the benefits of eBay managing payments?
• New ways for buyers to pay: Buyers can pay with credit card, direct debit, PayPal, PayPal Credit, Apple Pay or Google Pay.
• One place to sell and get paid: You can access everything you need to sell and get paid, all on eBay: a single source for fees, customized reports, refunds, simplified protections, tax documentation, and dedicated support. If you use third-party tools, there should be no change in how you use those tools on managed payments.
• Streamlined operations: Payouts are regularly deposited to your bank account weekly or as soon as funds are available, based on your preference. Regardless of how the buyer pays, payouts are consistently available within two business days of an order confirmation. Pending payouts can also be used to pay for shipping labels, in addition to using a PayPal account. You can easily ship to international buyers with our Global Shipping Program (GSP).
• Simplified fees: Once activated for managed payments starting late July, you will pay only one final value fee1, consisting of a category-based percentage of the total amount of the sale, plus a fixed fee per order, with no third-party payments processing fees. Your final value fees will be automatically deducted from your sales proceeds, and the rest paid out to your bank account. Most sellers can expect to see overall savings2. For full fee details, click here.

You are required to register for managed payments by July 15, 2020.
To ensure that your sales continue uninterrupted, and no restrictions are applied to your account, please be sure to register before your account is activated starting late July.

What does it mean to “register” my business?
Registration allows you to get your business ready early for managed payments, and is required to be completed by July 15. You can register in a few simple steps, including verifying your business information and providing a bank account. This information will allow us to send your payouts after you are activated on managed payments, and comply with regulatory obligations, which helps keep eBay a trusted marketplace. Information on fees and how they are calculated will be available before you start registration, and you will be able to track your progress on the Payments tab in Seller Hub.

What happens after I register?
Once you register, we will activate your account on managed payments starting late July. Until then, nothing will change in how you manage your business on eBay. We will ensure you have access to all the detailed information you may need to prepare your business and you will be notified of your activation date well in advance. In order to learn more and start registration, please click here.

• This reply was modified 6 years ago by Jay.

[Sharyn]

Here’s the key sentence, Jay:
“your account will be activated for managed payments starting late July”

and:
“You are required to register for managed payments by July 15, 2020.”

Nothing there about having a choice.

[Jay]

I agree. Its happening. But there’s a choice to make. Do we register now, or wait till July 15 to register?

Please click here to register for managed payments today.

We don’t have to click to register now. As you pointed out:

To ensure you are ready in advance of the change and that there are no interruptions to your business, you will need to register by July 15th, 2020.

• This reply was modified 6 years ago by Jay.

[Sharyn]

I believe that the information they need are things like your bank information where your money will be deposited and your SSN or company EIN depending on how you do your taxes. If you don’t give that information to them, they probably can’t disburse money to you.

My guess, at least. I haven’t registered yet, so I don’t know for sure.

[Jay]

Agreed. Its clear everyone who received the message needs to register by July 15.

My point is we’ll wait as close to July 15 as we can. If we register now, we’d be switched over to Managed Payments sooner? Maybe maybe not.

Ultimately it is what it is. I just want eBay to have enough time to work out the bugs before we join. Right now is not a time we want to deal with glitches.

[Timo]

I got an email like that around March 31 stating that I would be moved in to managed payments in late July.

There is no choice involved.

The email subject was: “New managed payments option during unprecedented times”. And eBay made it sound like they were helping me out with this during the pandemic.

[AtomicStar]

Ugh I am not looking forward to this at all. I did not get the email yet. I was told that I would be in the last wave most likely due to the fact that 15% or more of my sales go GSP. I will go into this new plan kicking and screaming.

[Julie B]

Ebay has fixed it so that you can now sell thru GSP with Managed Payments. That was a big sticking point for me. They will also pay postage out of what you received from the buyer before they deposit it into your account, if you want them too.

While I’m hopeful that maybe Managed Payments could increase sales for me somewhat due to buyers’ having more payment choices, I’m not looking forward to changing how I do things. I like having my ebay funds in a separate paypal account that I can transfer over to my bank acct in large chunks. It feels good to transfer over several hundred dollars at a time. I think having small amounts go in daily won’t feel as satisfying.

A potential issue is some banks may require us to set up a separate business account when they see the new activity going into our accounts because most banks have specific policies about their customers intermingling personal funds with business funds, even for those of us operating as a sole proprietor dba. One reason they do this is because they charge business bank accounts higher fees.

[Antique Frog]

Web page illustrating payment choices available here. Not sure about the ‘direct debit’ option!

One side effect of this virus thing is that I’ve stopped using cash, using a contactless debit card instead. Shops have raised the limit on contactless transactions from £20 up to £45. Fortunately, as regards cash, all UK banknotes are now plastic so they’re easy to launder.

[Antique Frog]

When I first heard of this thing I wondered who benefits? Obviously not the sellers. Just seen the words “tax documentation” in that email above. That might be one of the driving forces behind this thing in the US. Had an email earlier this year from eBay UK, but not heard a peep since.

Is eBay rolling this out in Italy? 🙂

[AtomicStar]

@julieb Is it true that refunds for returns are added to your monthly invoice? If that’s the case, that’s a big issue for me. As a volume clothing seller, returns are a thing and they really add up. It’s beyond me why eBay cannot take out their fees per transaction.

[Sharyn]

Here is the Facebook page of Jordan Sweetnam, a general manager at eBay. He has a post from yesterday that gives a graphic of the managed payments fee structures and lists FAQs. I’d link directly to the post, but I’m not sure how to do that.

https://www.facebook.com/jordan.sweetnam.501

[sonia]

Thanks for the link to Jordan’s FB page, Sharyn. I found this encouraging answer from him on there:

You may choose to pay for shipping labels by having the costs deducted from pending payouts or by using your payment method on file (paypal, credit card or bank account)

If this is true – yay! I definitely look forward to earning CC points for shipping charges.

[MrsKensington]

I’m wondering what this will mean for tax filing, which someone mentioned above. Specifically, what will eBay’s threshold be for reporting income to the IRS? Will they make it easy to back out shipping paid from shipping received? And eBay fees? (PayPal reported shipping as income and it was painful, as a novice, to figure out how to deduct what I actually paid for shipping.) Etc.

Stay safe, everyone.

[Jay]

Does anyone here use Managed Payments?
–What do you like?
–What dont you like?
–Did it mess up your workflow?
–Did it affect sales positively or negatively?

[Author]

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