More crazy stuff from Ebay Re; Managed Payments Fee Gouging.

[tch_ca]

Here is an example how Ebay is looking to get even more money from sellers. In one of my stores. I sell a book to a US Buyer on Ebay.ca. The Cost of the book was $130.00 + $19.99  shipping for a total of $149.99. The total trasaction including the collected taxes by ebay for a US citizen was  161.81.  The total fees charged for this transaction were $21.70. That's an effective rate of almost 14%. Ebay claims 11.5% fee rate for a book (store subscrption rate). So where is it all going? Well...For one you will be charged an aditional .04% for the privilage of selling to a US buyer from ebay.ca. Secondly you will be charged a .30 cent payment fee. Third you will also be charged the 11.5% value rate on TAXES Ebay collected for the US governmenmt on your behalf. I see Ebay has been taking lessons from Canadian Banks and how to fee gouge a few pennies at a time.

[reallynicestamps]

The 30c non-refundable fee is equal to that charged by Paypal.

Paypal also charges a premium for payments from non-Canadian accounts.

• Canadian accounts are charged 2.9%
• US accounts are charged 3.4%
• Overseas accounts are charged 3.9%
• This is actually better than our American collegues who are charged 4.4% on foreign PP payments.

The fees on US taxes are an ongoing annoyance. While this is consistent with Standard Practice* on merchant credit card accounts, it is particularly annoying when PP and MP collect it for a foreign government.  The reasoning is that the processor (again both PP and MP) is managing the entire transaction, not just the purchase price.

I am not yet in Managed Payments, having been a hold out for months now.

My arguement is not about fees (for years I have allowed 20% of payments for fees and Cookie Jar Insurance) but for banking problems related to US dollar sales.

I suspect that many sellers have never broken down their PP payments, nor their eBay monthly invoices.  Doing this is easier now that fees once paid to PP on the transaction and to eBay once a month are both being recorded in the same place.

It has caused some consternation.

*If you pay a shop in ON with a credit card, not only is the merchant charged a fee on the goods (and services) but also on the 15% HST he collects. 

[tch_ca]

Just to clarify. Ontario HST is 13% and depending on who your provider is, it is still no where near 11.5% ebay collects on the tax. Mine is in range of 1.65 to 2.4 depending on the card. I did the math. This transaction would have cost me $3.04 less using the old rates and pp. Even giving Ebay the benefit of the dounbt on the full pop on taxes. Cheers. 

[luckylegend]

**bleep**. IS there a way to go back to paypal?

[pjcdn2005]

I was curious what the difference in the two processing fees would be as 3.04 didn't sound quite right. I don't get the same total as you in MP  I'm assuming that you are in ON) and the difference that I get between PP and MP is quite a bit smaller than what you said so one of us has figured something out wrong.

Fees in MP

fvf - 161.81 x 11.5% = 18.61

international fee -161.81 x .4 = .65

transaction fee - .30

fees before hst - 19.56

ON hst on fees -  19.56x 13% =2.54

Total -22.10

Fees when using PP

fvf - 149.99 x 9.15% = 13.72 (fvf for store)

tax on fvf - 13.72 x 13% hst = 1.78

Total ebay fees - 15.50

PP fee - 161.81 x 3.7% = 5.99 (PP includes tax paid by buyer when figuring out their fees, they also add  .8% for US buyers)

PP transaction fee - .30

Total PP fee - 6.29

Total ebay and PP fees - 21.79

Difference in MP and PP - .31

You said that your MP charge was 21.70 so if I use that number than it is .09 less than what you would have paid with PP.   Either way, I don't think $3+ was correct.

[reallynicestamps]

No.

EBay is in the process of ending its contract with Paypal.

Best I've managed is to sign up but not attach a bank account, since my main concern is being able to put my USD payments into my American* bank account.

*Which is NOT a Canadian bank account in US dollars but a bank in the USA.

[briankelm]

they are only gouging themselves now, I used to sell thousands of dollars worth of stuff on here, now I limit to a couple hundred a month, just because I see through what is happening, they are constantly trying to keep people confused on the site so that they can benefit financially. I just sold a vintage cooler 

got $48 & $85 Cnd shipping for a total of $133, but now left with $113   $20 in fees now, the $85 for shipping is the actual cost so i don't have a handling charge.

[blackranda2]

From what I understood when I read the fine print is that Canadian sellers CAN NOT have the money from their Managed Payment sales go to a US bank account. It has to go to a Canadian bank account which can be set up to receive payments in USD. You might want to check into this further.

[blackranda2]

Pretty sure eBay is going to be making more money with this new managed payments plan otherwise they wouldn't be putting in the time and effort to implement it. Even if they only make a few cents more on 1 transaction the end result for the millions of transactions they process will make a huge difference.  They are always telling sellers that it if something goes wrong with a customer that we should just chalk it up to the  cost of being in business. However sellers are eBay's customers but it doesn't seem to work the same way with them?? Nobody knows for sure exactly what the issue with them and PayPal was but again I am pretty sure they could have worked something out with them if they had wanted to.

[historysci]

This is definitely gouging by eBay. MP is charged to bank account so there are no credit card fees. The fees are added to the sale price, including shipping AND TAXES, AND then GST/HST on top of all that. For items with the shipping cost significant to the item price this means that you either add the expected fees to the shipping cost you cahrge or end up paying more like 30-40% of the item price to eBay. There is no justifiaction for adding full commisison rates to all this.

I wonder if it would be legal elswhere? Fodder for a class-action?

With PayPay fees plus eBay fees, I was paying about 13% on most transactions all told. I used to pass on this on shipping cost to cover my costs and gladly pay the commission to eBay as it was reasonable before. Now it is about 16% where shipping cost is much lower than item price. If the shipping cost is for small items and the cost is about the same as the item, the eBay fees are taking in about 35% of the item sale price now.

Like all things eBay it seems, they make it obscure and difficult to see what is going on, and don't care.

[ypdc_dennis]

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@blackranda2 wrote:

Pretty sure eBay is going to be making more money with this new managed payments plan otherwise they wouldn't be putting in the time and effort to implement it. ...

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Of course they are.  eBay's MP is grabbing the slice of the action that paypal used to get under the old setup.  That extra slice of 2.9% to 4.2% adds up.

Just noticed:  This is a ZOMBIE thread from April 2021

[mrdutch1001]

all old news...

THIS IS A ZOMBIE THREAD!

HOWEVER, FOR ANYONE WHO STILL NEEDS CLARIFICATION:

eBay made it very clear about the fees being charged on TOTAL transaction including any sales taxes,etc.etc,etc...

"We charge one final value fee when your item sells, and you don't have to worry about third-party payment processing fees. This fee is calculated as a percentage of the total amount of the sale, plus $0.30 per order."

https://www.ebay.ca/help/selling/fees-credits-invoices/frais-pour-les-vendeurs-particuliers?id=4822

[marnotom!]

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@historysci wrote:

This is definitely gouging by eBay. MP is charged to bank account so there are no credit card fees. The fees are added to the sale price, including shipping AND TAXES, AND then GST/HST on top of all that. For items with the shipping cost significant to the item price this means that you either add the expected fees to the shipping cost you cahrge or end up paying more like 30-40% of the item price to eBay. There is no justifiaction for adding full commisison rates to all this.

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PayPal also charges "full commission rates" based on the full transaction value and then sneaks in little extras such as its "International Fee" that don't show up on statements to sellers.  Not very many people seemed to get excited about that, probably because they didn't do the math.

When complaining about the Managed Payment fee structure, many people seem to forget that eBay has charged its Final Value Fees on shipping for ages and has to charge GST/HST on those fees as well thanks to a directive from Revenue Canada.  (This has also been going on for ages.)  They also forget that in most categories, fees have dropped with Managed Payments because of the fee charges covering a bit more than they used to.

@historysci , it would be interesting to see a fee comparison along the lines of what @pjcdn2005 posted in post 5 to see where your 16% figure is coming from, but you'd probably have to start a new thread for that as @ypdc_dennis pointed out, this is a pretty dead thread and will likely be closed to further posts shortly.

[kh-leslie]

Hi everyone,

Due to the age of this thread, it has been closed to further replies. Please feel free to start a new thread if you wish to continue to discuss this topic.

Thank you for understanding.