Is there any way to go back to using PayPal to manage payments?

[mullersmutt]

I just received an e-mail about eBay managing my payments, and I figured it was required so I went through the whole thing, added my bank account, etc.  Now, all of my payments will be handled directly from eBay to my bank account.

The problem is, I am going to be going from getting my money INSTANTLY (through Paypal's direct-to-bank transfer) to waiting potentially a week or longer to receive my money after being paid?!  This is honestly outrageous.  I value being able to receive my money instantly as I have for years.  I simply cannot believe that eBay considers this an improvement.  It's an improvement for their bottom line I am sure, but definitely not for the seller.  This is extremely disappointing.

If there is a way for me to revert back to using PayPal for receiving funds, PLEASE let me know.

[ut.babe]

I didn't mean for purchases on ebay, I meant purchases online in general. It was just a description of how much I use Paypal. My understanding was that they wanted to not have Paypal as a payment option at all but have everything go through ebay? If you can still pay through Paypal then that would mean sellers can still use it and NOT register for the MP?

[recped]

It's really simple........

Buyer can use PayPal to pay for purchases on eBay

Sellers must accept PayPal via Managed Payments

eBay has NEVER suggested that they no longer wanted PayPal as a PAYMENT METHOD FOR BUYERS. What they have always said and what they are doing is taking over payment processing from PayPal so instead of PayPal making Billions in profit every year eBay will get to pocket that money (minus what Adyen gets to operate the system).

If you want to continue to use PayPal elsewhere go ahead, you can fund those purchases with a credit card or transfer money from your bank account (the same account you get to receive MP funds if you like).

Do a little reading so that you understand how it all works:

https://www.ebay.ca/help/selling/getting-paid/introducing-managed-payments-ebay?id=4795

[pjcdn2005]

@7366carl 
I never realized that we could use a credit card to pay for Shippo labels.  That’s good to know.

[pjcdn2005]

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@vintadare wrote:

Will this become mandatory? Sales are awfully slow here compared to other venues and this basically means an increase in their fees (even though the email said *most sellers will pay the same or less than before ... I guess the keyword here is "most" and it's funny how the "others" are basically told they will pay more lol)

I currently pay 10% on sales, plus whatever PP takes.

Now with this :

* 12.35% on the sale

* 30 cents extra on the sale (that's 3% on a $10 sale

The 12.35% + .30 replaces the 10% eBay fee and the 2.9% +.30   PayPal fee

* 3% extra for fund exchange (Can this be paid by the buyer or we're left with the bill here? I doubt eBay will alienate buyers with a transfer fee, they will happily take their US $ and charge US to get this in CAD so they can deposit at a fee of an extra "mandatory" 3%)

You list on .ca so you will be paid in Canadian dollars and will not be paying a currency exchange fee.  If the buyer pays in another currency they will pay the 3% conversion fee just like they always have.  
If you list on another site, you would be paid in that site’s currency but when the money was transferred to your Canadian bank account you would have to pay the 3% conversion fee.

* A new "international fee" (whatever that is) of 0.4% when you sell to the US, 1% elsewhere.

Paypal didn’t call it an international fee but the did charge .8% extra when selling to a US buyer and 1% to other countries 

* And to top it off, a flat $20 "dispute fee" if someone initiates a chargeback on your transaction.

If you disputed a credit card chargeback on PP and lost there was a $20 fee.   With MP you pay that same fee if you dispute a chargeback and you lose.

So ... who is "that" guy who will pay less on this system? lol

If you're selling a $10 widget, and hopefully you don't get a chargeback, you're looking at 19.35% fees ... 

Get a chargeback and you owe money to eBay on top of being out of your item from the fraud of the buyer eBay won't have screened first.

So, is this gonna be mandatory down the line?

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[maximus7001]

Actually here is a copy paste from my paypal account:

"Here’s how we set our exchange rate:

• We receive a wholesale rate quote from our bank twice a day and add 2.5% to determine the retail foreign exchange rate to apply to transactions that involve a currency conversion."

So where does this 3% figure come from. Is it more than that? or less? According to paypal it is an unknown variable rate that changes twice daily.

Only about 10% of our sales are in CAD. 90% of our sales are in USD, EURO and pound sterling. Almost all of our online purchases are not in CAD.

So now instead of paying almost nothing in conversion fees it will be over 6%. We will have to pay again to convert it back to the currency it was in the first place before ebay forced an exchange rate to steal 6% of our money.

[ut.babe]

I read everything they sent, and by the way your condescending tone is not appreciated. Thanks for your input. There is still no way I will be forced by anyone to give them access to my banking info simply to sell. If they ever figure out how to do this without having that (and they won't) then I'd consider it. That's just my choice. Since joining ebay 20 years ago they have become more and more controlling. My policy is not to participate any further 😉 I wish everyone well and great success in 2021!

[byto253]

Correct me if I am incorrect, from what I am reading managed payments force the conversion from US dollars to Canadian dollars and incurring the foreign exchange fees.  I am not under MP, likely because I am a new seller, but know folks who keep a US$ paypal balance to pay for US items in US dollars - and not just on Ebay but on a lot of sites.  That is my plan as well and hope I to not get the "invitation".  

I don't see legally why US funds should not be deposited directly into a US currency account, but see the motivation to not do that if there is a 3% skim off the top.

[reallynicestamps]

I'm one who is holding out on MP , not because of fees, which seem to be about the same or a teensy weensy tiny bit lower, but because of the bank limitations.

We can only be paid in the currency of the site we are registered on-- and for most of us that would be Canada.

But we make most of our sales outside of Canada and most of us list on both dotCA and dotCOM .

The dotCA payments are not a problem, since the buyer (whether she knows it or not) will be paying in loonies.

The dotCOM payments are in USD, and without the ability to send those to an American bank account, we will be paying currency exchange to put the money into our Canadian bank accounts.  I don't care if it is the bank or eBay that gets that money, it was unnecessary with Paypal and I don't understand why Managed Payments cannot do the same.

Multiple banks in multiple currencies are what sellers want and need.

[mrdutch1001]

Eventually, we will all get the "invitation"...the decision will come down to what to do with that "mandatory invitation"...Although not yet in MP, and not yet been given a date or anything, I already know I will not be following the herd into that pasture... MY choice/MY decision...don't "need" eBay to continue selling online...I already sell on other venues that allow for PayPal only ...there are other choices...

each seller needs to make whatever choice/decision that is in the best interests of their online selling going forward.

[reallynicestamps]

I don't see legally why US funds should not be deposited directly into a US currency account, but see the motivation to not do that if there is a 3% skim off the top.

You can choose to us a Canadian bank account held in US dollars if you wish, but the money must *  be changed to Cdn dollars when it leaves the USA and the Canadian bank then changes it to the currency the customer prefers.

Two sets of currency exchange -- by the bank.

What you cannot do is have an American account in US dollars if you are in Managed Payments but registered in Canada.

You can only have one bank account and it must be with a Canadian bank.

We have an American bank account in US dollars because before we retired we did a lot of dealing in the USA. Some snowbirds may also have US bank accounts for their winter homes. Managed Payments do not allow for those.

*Legally- it's a US law predating 9/11, originally designed to prevent money laundering by drug lords, now also applied to terrorists.

[jolp_emporium]

I wonder how long we can hold out for until eBay will force us to switch over? 

[pjcdn2005]

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@maximus7001 wrote:

Actually here is a copy paste from my paypal account:

"Here’s how we set our exchange rate:

• We receive a wholesale rate quote from our bank twice a day and add 2.5% to determine the retail foreign exchange rate to apply to transactions that involve a currency conversion."

So where does this 3% figure come from. Is it more than that? or less? According to paypal it is an unknown variable rate that changes twice daily.

Only about 10% of our sales are in CAD. 90% of our sales are in USD, EURO and pound sterling. Almost all of our online purchases are not in CAD.

So now instead of paying almost nothing in conversion fees it will be over 6%. We will have to pay again to convert it back to the currency it was in the first place before ebay forced an exchange rate to steal 6% of our money.

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Paypal -  As far as I know the conversion rate at Paypal was 3% for years although it recently changed to 4% when buyers are paying in a different currency.  I think but I'm not certain that we are still charged 3% when transferring foreign funds to a Canadian bank account.  Do you have a link for that line about 2.5%, I don't recall PP ever charging that.

Managed Payments - The 3% conversion fee is fixed at 3% and doesn't change daily.  The actual exchange rate between currencies does change and I imagine that they get that from their bank.  Most institutions charge a fee when one currency is converted to another one.  For example, if I transfer $100 US from PP to my bank account, I will receive about $123C in my bank account.  The actual rate is $1.27 but I would only get $123 because of the conversion fee.

I'm not sure where you get 6% from because you will only be paying a conversion fee of 3% when you list on other sites. When you list on the .com site you will be paid in US$ and will have to pay a conversion fee when that money is transferred to your bank. As I mentioned earlier the buyer still pays the conversion fee if they are paying in a currency other than what you are listing in so it doesn't matter where your buyer is, you only pay one conversion fee and that is only if you are listing on a site other than .ca.  

In the future ebay 'may' allow Canadians who list on .com to have their money deposited into a $US bank account so that there is no conversion fee.  They have said that they are looking into it.  

[pjcdn2005]

If you are invited then I don't think you have much of a choice. Sellers have said that they were unable to list or revise listings when they didn't join MP by the date they were given.   However, since sellers such as femme haven't been forced into it even though they have been 'invited' I believe that they are making an exception for sellers for list on .com as they are  looking  into allowing sellers to deposit .com funds into $US accounts. 

[lotzofuniquegoodies]

@mrdutch1001 

The reasons for sellers delaying the switch vary from seller to seller. It could have to do with the currency thing, specific categories that are not/will not be permitted going forward and lastly and maybe the biggest one, a tool to move large quantities of listings from one site to the other. For some it may be 1 and others, all of these. These needed to be addressed before forcing a switch instead of leaving sellers in limbo until they are resolved. What of the above situations can a seller delay joining? Is it written anywhere in plain English? Do you suddenly one day end up in an eBay Black Hole? There be other reason's but those are the ones that keep coming to my mind as critical.

-Lotz

[lotzofuniquegoodies]

@recped 

For anyone that would like to review fees for the amount paid in conversion fees with PayPal there is a tab to check that. Only problem when you select and specify a date range the total comes up as $0.00 no matter how many times you hit the enter key.  You receive a message stating the following: There are no transactions for this date range. Showing the math between eBay - Invoicing or MP, PayPal and Shippo is not one of their strong suits. If I am not mistaken wouldn't those fees be considered a business expense if you are claiming for tax purposes?

-Lotz

[pjcdn2005]

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@lotzofuniquegoodies wrote:

@recped 

For anyone that would like to review fees for the amount paid in conversion fees with PayPal there is a tab to check that. Only problem when you select and specify a date range the total comes up as $0.00 no matter how many times you hit the enter key.  You receive a message stating the following: There are no transactions for this date range. Showing the math between eBay - Invoicing or MP, PayPal and Shippo is not one of their strong suits. If I am not mistaken wouldn't those fees be considered a business expense if you are claiming for tax purposes?

-Lotz

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There is a tab on PP to check that?  I've never checked but I would imagine that yours would say zero....for selling anyway.  Since you list on .ca there is no reason you should have had to pay conversion fees.

[lotzofuniquegoodies]

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@pjcdn2005 wrote:

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@lotzofuniquegoodies wrote:

@recped 

For anyone that would like to review fees for the amount paid in conversion fees with PayPal there is a tab to check that. Only problem when you select and specify a date range the total comes up as $0.00 no matter how many times you hit the enter key.  You receive a message stating the following: There are no transactions for this date range. Showing the math between eBay - Invoicing or MP, PayPal and Shippo is not one of their strong suits. If I am not mistaken wouldn't those fees be considered a business expense if you are claiming for tax purposes?

-Lotz

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There is a tab on PP to check that?  I've never checked but I would imagine that yours would say zero....for selling anyway.  Since you list on .ca there is no reason you should have had to pay conversion fees.

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Wouldn't payments from US buyers paying in US funds involve a currency exchange charge?

-Lotz

[maximus7001]

We have been "invited" but have not been forced yet because we suspect that since we also list on .uk and accept money orders, bank drafts and personal cheques there and that such a thing cannot work with MP.  Also we list on .uk with our USA based account too and have not been bugged at all with that account, no "invitation" yet.

[recped]

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@lotzofuniquegoodies wrote:

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@pjcdn2005 wrote:

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@lotzofuniquegoodies wrote:

@recped 

For anyone that would like to review fees for the amount paid in conversion fees with PayPal there is a tab to check that. Only problem when you select and specify a date range the total comes up as $0.00 no matter how many times you hit the enter key.  You receive a message stating the following: There are no transactions for this date range. Showing the math between eBay - Invoicing or MP, PayPal and Shippo is not one of their strong suits. If I am not mistaken wouldn't those fees be considered a business expense if you are claiming for tax purposes?

-Lotz

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There is a tab on PP to check that?  I've never checked but I would imagine that yours would say zero....for selling anyway.  Since you list on .ca there is no reason you should have had to pay conversion fees.

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Wouldn't payments from US buyers paying in US funds involve a currency exchange charge?

-Lotz

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Of course your non-Canadian buyers pay exchange fees, that's their business, it would show in their PayPal accounts, there is absolutely no reason for you to know anything about that. Your buyers could use any of the 24 currencies that PayPal handles, it is of no concern to you.

You sell in CAD, you get paid in CAD, that's it that's all! You cannot claim an expense for something you never incurred.

[pjcdn2005]

Wouldn't payments from US buyers paying in US funds involve a currency exchange charge?

-Lotz

If a buyer does not have the currency that the listing is in, PP or MP will convert their currency into the listing currency and only the buyer will pay a conversion fee.