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eBay sellers will no longer be able to use PayPal under new terms of use. The e-commerce giant is gearing up to introduce a myriad of new changes this week.
With new terms of use for eBay coming into effect, sellers will be paid directly rather than via PayPal. The online auction house was acquired by PayPal in 2002. Since then, the two companies have worked in partnership.
The rule went into effect on June 1 for several account holders. While eBay buyers can continue making their purchases using PayPal, sellers will bypass the online payments system. They will be receiving funds paid into their bank accounts, instead.
eBay sellers can’t use PayPal from June 1
Some sellers have opposed the recently introduced terms of use for eBay. They have threatened to stop using the website over this uninvited move, according to Yahoo News.
There are several posts from frustrated sellers on eBay’s forums. Sellers say they aren’t willing to use the new system and give eBay direct debit access to their personal bank accounts.
However, the newly announced terms say the new managed payments system is mandatory. On top of that, the company is capable of removing or limiting listing from sellers who do not use it.
According to eBay, the new system is not only simpler and more convenient to use, but it also offers more payment options to buyers. The company will be rolling it out gradually.
What’s changing with eBay direct debit?
With the managed payments system, PayPal fees will not be included in the process. It is worth noting, though, that eBay has slightly increased its own fees.
eBay claims most sellers will end up paying the same, if not less than before. The new system is 12.8 percent of the final amount. Aside from that, it includes delivery and 30p in the UK (about $0.30 in the US).
In the old system, users paid 10 percent to eBay, PayPal’s fees, and 30p. The difference favors the recently introduced system in terms of pennies for most transactions.
As part of this move, buyers will automatically have access to various payment options. They will be able to pay using their PayPal Credit, PayPal, Google Pay, Apple Pay, credit and debit cards.
The downside of the new payment system
It will now take two working days for payments to be transferred. PayPal, on the other hand, usually transferred the payment on the same day.
An eBay spokesperson noted that the feature has been rolled out since 2018. Moving first, about four million business sellers are already using it, the spokesperson explained.
Since the deadlines for users are phased, some are required to start using the new system from June 1. Others will have to wait for a message from eBay before they start using the new system in the coming weeks.