eBay Managed Payments: Everything you need to know about it!
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When it comes to sellers, the checkout process has always been a pain point. Imagine a scenario where a buyer visits a marketplace and spends time searching for the perfect product, which happens to be yours, only to abandon the cart at the very last moment. Frustrating, right?
One of the most annoying aspects contributing to this problem is a complicated payment procedure that redirects buyers to complete their payment elsewhere. Thankfully, eBay has a solution called eBay managed payments. But how does eBay process payments?
eBay managed payments allow sellers to accept various forms of payment, including credit cards, debit cards, and PayPal. eBay also accepts Apple Pay as a payment method, further expanding the options available to buyers.
This blog offers comprehensive insights on payments managed by eBay, simplifying the understanding of this payment system. From explaining the process and benefits of eBay managed payments to addressing common queries and concerns, the blog provides clarity. You can clearly understand how payments managed by eBay work and how they can benefit sellers and buyers on the platform.
What is eBay Managed Payment?
With eBay managed payments, you no longer need to worry about a PayPal account as eBay manages your payments. This system also provides shoppers various payment options on eBay, including Apple Pay.
eBay managed payments allow you to choose the frequency of receiving your funds after making a sale, whether daily, weekly, or as funds become available. Payouts are created on weekdays within two business days.
Since its introduction in 2018, eBay managed payments have become integral to the platform’s payment system after parting with PayPal. Getting paid is simplified as funds are sent directly to your account. Additionally, managing your finances and fees becomes smoother with the streamlined approach of payments managed by eBay.
The managed payments make things easier by making things simpler in:
- Selling: The flexible checkout makes things easier for buyers.
- Receive Your Payouts: Simplified payouts send money directly into your account.
- Management: With simplified fees, management becomes smoother.
Accepted payment methods
The benefits of managed payments eBay include payments support from a vast array of processes, like,
- Credit Cards
- Debit Cards
- Gift Cards
- Apple Pay
- Google Pay
- PayPal Credit
Getting Paid on eBay
You can use eBay Managed Payments, a streamlined payment system that offers secure and convenient transactions when you sell on eBay. In this guide, we’ll walk you through the process of getting paid on eBay and provide tips on how to make the most of your earnings. With eBay Managed Payments, you can access consolidated fees, customizable reports, shipping labels, simplified protections, and even tax documentation (Form 1099Ks).
How eBay Payouts Work?
Once a buyer completes a purchase and pays, the funds are shown as “Processing” in Seller Hub. At this stage, it’s time to ship the order. You can use these funds to pay for USPS, UPS, or FedEx shipping labels. Besides, if your funds are insufficient, eBay will charge your registered payment method to cover the shipping costs.
eBay generally makes the funds available within 2 days of confirming the buyer’s payment. After that, you can choose your preferred payout schedule. You can also request an on-demand payout if you’re on a weekly, biweekly, or monthly payout schedule. It’s important to note that once eBay initiates the payout, your bank may take 1-3 days to make the funds available.
eBay Managed Payments: How You Receive Payouts?
Connecting or Changing Your Bank Account
While setting up your eBay selling account, you will be asked to create a Payoneer account to receive the payouts. If you need to add or change your bank account, you can update your account information in the Payments tab in Seller Hub. Moreover, make sure that the name, address, and business information (if applicable) on your bank account match the details on your eBay account.
Choosing or Changing Your Payout Schedule
To ensure easy reconciliation, select a payout schedule that suits your needs. You can receive payouts daily, weekly, biweekly, or monthly. You can allocate more earnings toward expenses like shipping labels and refunds by choosing a more extended payout schedule.
eBay initiates monthly payouts on the first Tuesday of each calendar month, while it sends biweekly and weekly payouts to your bank on Tuesdays. Additionally, if you prefer daily payouts, eBay sends funds within 2 days after confirming the buyer’s payment. Also, note that banking holidays may cause delays in payouts.
Payouts on Demand
You can request an on-demand payout for your available funds if you receive weekly, biweekly, or monthly payouts. This way, you don’t have to wait for your next scheduled payout to get paid. Visit the Payments tab in Seller Hub or Payments in My eBay to request a payout on demand. Your bank will process the funds per their standard processing times.
Express Payouts with Visa or Mastercard Debit Cards
You can get your money faster by linking your Visa or Mastercard debit card as your payout method. Once your debit card is verified, you have two options for when you receive your money:
If you choose your debit card for scheduled payouts, you’ll get your funds within minutes, even on weekends.
You can request an express payout if you receive weekly, biweekly, or monthly payments. Your bank will make the funds available within 30 minutes, even on weekends and holidays. Remember that there is a fee for each express payout to your debit card.
Advantages of Managed Payments by eBay
- Predictability: Once eBay confirms a buyer’s payment, the company initiates a payout to your bank, ensuring predictable payment processing.
- Flexibility: You can choose a payout schedule that aligns with your reconciliation needs, whether daily, weekly, biweekly, or monthly.
- Convenience: You can use your funds to purchase shipping labels for the items you sell, eliminating the need for separate transactions.
- Faster Payouts: By setting up your Visa or Mastercard debit card, you can enjoy express payouts and receive your funds within minutes, even on weekends.
Simplified eBay Managed Payments Fees
Regarding payment processing fees on eBay, the platform charges a final value fee, which applies to managed payments. This fee comprises a category-based percentage calculated based on the total sale value and a fixed price per order. It’s important to note that PayPal processing fees are excluded from this fee. The introduction of managed payments has simplified the monthly invoice, making it clean and easier to understand.
Under eBay managed payments, the final value fee is deducted from the sale amount. In the event of refunds or cancellations, eBay retains only the order fee and returns the remaining portion to the seller.
eBay charges sellers fees ranging from 2% to 15% based on the product category for managed payments. Additionally, the company applies a fixed fee of $0.30 per order.
Regarding international selling fees, eBay manages and handles the customs, taxes, and import/export fees for sellers engaged in international shipping, further simplifying the selling process on a global scale.
eBay has successfully implemented managed payments. This new payment system replaces the previous reliance on PayPal as the primary payment method on the platform. Consequently, with eBay managed payments, sellers can now manage them directly on eBay, providing a more integrated and streamlined experience.
Managed payments by eBay offer significant benefits to sellers. Also, one of the best things is that it makes paying more accessible. Additionally, the company streamlines and ensures transparency in the invoicing system, making it easy for sellers to track their fees and finances. This transition allows sellers to receive payments directly to their bank accounts, simplifying the overall transaction process.