eBay Managed Payments - transition away from PayPal transition away from integrated credit card payments March 1, 2019

[Modee]

To summarize:
This thread explains how I have developed a proven way to get approval for eBay Managed Payments even in a stealth account.
This method works easily for any US resident, but there is even a way to do this for a non-US resident.

Come March 1, 2019, eBay will no longer allow sellers to use their own ebay checkout integrated merchant accounts
Merchant Accounts - Free EBAY, PayPal, Business and Law Forums - Ebay Suspension, PayPal Limited
to process payments for auctions. In other words, come March 1, 2019, no more "merchant account only" ebay accounts.

However, the detail on how exactly this will work are not entirely clear. For example
Payments and earnings | Seller Center
and other sources, state that

"Current sellers can continue to use IMCC [Integrated Merchant Credit Card] until Mar 1, 2019. Although you need to remove this payment option from your listings by then, buyers will still be able to use a credit or debit card when they buy your items."

what exactly this means, remains to be seen. Does it mean that an ebayer who does not sign up for Managed Payments and has already been approved for merchant account only status will be able to still accept credit card payments somehow?

Another interesting wrinkle is that at least until summer 2019, this new eBay Managed Payments will NOT even allow PayPal payments. Ebay is clearly moving AWAY from PayPal.

What is not stated, and must be true, is that the payment processor for Managed Payments must be Adyen
eBay to Intermediate Payments on its Marketplace Platform via Adyen and not PayPal - Free EBAY, PayPal, Business and Law Forums - Ebay Suspension, PayPal Limited
the Dutch company.

What IS stated, is that this new payment processing system WILL issue you a 1099-K if you are in the U.S. and process over $20K and 200 transactions in a calendar year:
Reporting requirements - U.S. merchant accounts beginning January 1, 2012 - IRS taxes - Free EBAY, PayPal, Business and Law Forums - Ebay Suspension, PayPal Limited
which means that it will be impossible to sign up for eBay Managed Payments in the U.S. without a valid tax identification number for reporting purposes. However, I have developed and am testing a method to sign up for eBay managed payments, even with a stealth eBay account. The details of this process will be written into a soon to be updated version of the Short List. (The Short List is updated almost weekly.)

Basically, eBay is slowly rolling out this new system. For now, eBayers who are on the merchant account only (IMCC) status, are being invited to join. Gradually, ALL ebayers will be forced to sign up, and the days of merely having an ebay account with nothing but a completely separate PayPal as the sole payment method will be over.

[Modee]

I have updated the Short List and have included a proven method to get approval for eBay Managed Payments into even a stealth account. This has been tested, and the approval comes in the form of this email:




When you go to create your new listing, this new section "Payments managed by eBay" will appear under Payment Options, and be pre-checked. Eventually, according to eBay, ALL eBay accounts will be switched over to Managed Payments and PayPal may be a thing of the past on eBay by 2023, or even 2021.

[Modee]

Selling limits: The best way to maintain your old selling limits on an eBay that was set for merchant account only status, is to go ahead and get eBay managed payments for your ebay. If you decide to go a different route and add a PayPal to it, eBay will often then go ahead and reevaluate your account now that it is using PayPal (which is a payment method that they are trying to phase out anyway).

In any case, I DO provide a tech support on bolstering the status of your eBay account and raising its selling limits, even on a stealth eBay.

[Modee]

When you make a sale using eBay payments, your "seller hub" will look like this



and "Processing Funds" means that eBay has verified and received the funds, and that it is OKAY to ship.

Notice also the return of the CHAT button - yes, you are again able to chat with eBay, at least after you get approved for eBay Managed Payments.

Buyers seem to be hip to eBay Managed Payments, and understand that PayPal is not currently even an option.

[Modee]

With one of my own "eBay Managed Payments" accounts one issue I have found is that eBay is still sending the old style "Your eBay item sold!" style emails, which state "Please ship this item to the buyer after your buyer pays." even though the buyer has already paid.

The GOOD news is that eBay buyers seem to understand and take to this eBay Managed Payments system, and are paying instantly, with their credit cards or Apple Pay (NO PayPal accepted, yet).

But it's a bit of a pain when eBay doesn't even notify me, the seller, that buyer has paid, and I must login to the eBay account to check status of the payment, and obtain the shipping address.

It's a quirk in the new system, that has to do with notifications, should be ironed out eventually.

[Modee]

By the way, the fee eBay charges for processing via Ebay Managed payments is currently a flat 2.7% (no per transaction fee). This 2.7% is applied against the sum total that buyer pays, including of course for shipping.

This 2.7% is of course apart from eBay fees, which are 10% for most auctions unless you have an eBay store.

What is interesting is that all of it - the 2.7% processing fee and the eBay fees are added together and payable at the end of each month, which means that you get ALL of the money buyer paid transferred to your bank account, and then make your own complete payment to eBay at the end of each month.

(This is by the the way merchant processing accounts that are based on an "Interchange" rate work - they give you ALL the money, as it arrives, and then at the end of each month you are billed for the processing and other fees.)

[Modee]

What is still not clear in the updated eBay User Agreement and eBay Managed Payments verbiage
User Agreement

Payments Terms of Use | eBay.com

is WHO is responsible for when an eBay Managed payment ends up being claimed as unauthorized / fraudulent. At AMZN, AMZN eats the loss (not the seller) when the payment is claimed as fraud by the credit card holder.

On the phone, eBay told me that "we take care of all that" when I asked who is responsible if the payment ends up being claimed as unauthorized by the credit card holder, but what I think the eBay rep was referring to was, that eBay handles all of the screening and risk assessment of the payment. That's all fine and dandy, but what if some fraudster manages to make it through all those checks, who assumes the loss in the end? ebay, or the seller?

Again, I am referring not to the typical chargeback or buyer dispute for never received, "not as described" or some other quality related issue - I refer to out and out fraud. Who assumes the risk?

[Modee]

Two updates:
Payments Terms of Use | eBay.com

1) If you have signed up for and been approved for eBay Managed Payments before June 4, 2019, your rate will remain at 2.7% with no per transaction fee.

If you are approved after June 4, 2019, you will pay whatever the payment processing rate is at the time, plus $0.25 per listing. The per listing fee is waived through September 30, 2019.

For all eBay Managed Payment sellers, you will pay a $20. chargeback fee for all sustained chargebacks and disputes. The verbiage is still unclear as to who is responsible for fraudulent payments.

2) eBay has been slowly adding PayPal to the list of approved buyer payment methods. PayPal was approved for my buyers today, and I received this message on my eBay accounts that are approved for eBay Managed Payments:

[Modee]

In 2020, some new changes are coming, the most important of which is that eBay Managed Payments will become available for more non-U.S. country payments. I assume that this means that U.S. ebayers who engage Ebay Managed Payments will be able to collect payments from more non-U.S. ebayers (currently, ebay managed payments works only for buyers from the U.S. and Australia).

[Horizons]

Hi, im located in the UK. I will send you PM

[Modee]

eBay just posted updated Terms of Service for eBay Managed payments.
Payments Terms of Use | eBay.com
which notes that eBay will be rolling out acceptance of Managed Payments for non-U.S. payments. At the moment, eBay Managed payments may be made only in the U.S. an Australia, but more countries are being added all the time.

Of note is clarification of how the Seller Protection Policy applies to eBay Managed Payments:
Security Measure
While there are additional protections for Top Rated sellers, basically, for ALL sellers as long as you ship to the address provided by ebay for shipment, using a delivery service that is online trackable, and get a signature for all items over $750., you are covered for "not authorized" (fraud) claims, and for non-receipt claims.

As far as disputes over quality ("Not as described") and so on, the protections are there for all sellers, but increased for Top Rated sellers.

[Modee]

eBay managed payments is currently only for U.S., U.K. and German eBays. Next up will be Canada and Australia. Eventually eBay Managed payments will be rolled out for all eBayers, and will be offered to most eBayers (in the countries where it is being offered at all) by the end of 2020.

The program works seamlessly and very well now. In the ebay managed payments accounts I have for myself (yes! on a stealth account), and that I have obtained for clients (also, yes! on stealth accounts) ebay send the proper You've been paid! notice with the shipping address, and you may then ship the item using your own shipping system, or print the label within ebay, for seamless integration and efficiency.

And, from what I have discerned, ebay managed payments does NOT molest you the way PayPal does for selling items they do not like. You will still be governed, of course, by ebay's Terms of Service but ebay managed payments seems to stick to being just a payment processor and not an overseer.

[Modee]

Starting mid-August 2020, eBay appears to now be deducting both eBay seller fees + eBay managed payment processing fees from incoming buyer payments, and then sending you your payout. Prior, you received the full gross amount paid in, and dealt with fees at the end of each month.

[spiceagent11]

With one of my own "eBay Managed Payments" accounts one issue I have found is that eBay is still sending the old style "Your eBay item sold!" style emails, which state "Please ship this item to the buyer after your buyer pays." even though the buyer has already paid.