Sellers Paid Directly to Bank Accounts
On June 1, new terms of use for eBay came into effect. From now on, the online auction company will not use PayPal to pay its sellers but will transfer them money directly to their bank accounts.
eBay bought PayPal long ago, at the start of its career in 2002. The two companies have been working harmoniously since then. Now, after the online auction house has changed its rules, buyers will still be allowed to pay through PayPal. In contrast, sellers will not have this option and will be paid into their bank accounts.
Sellers worried about the safety of their personal bank accounts protested. They complained that direct payments into their accounts might expose their funds to fraud and data leakage. Many appeared reluctant to follow eBay’s new regulations, give the company access to their accounts, and threatened to quit.
In response, eBay authorities said that there was no way around the new system. As its new managed payments are compulsory, the company has the right to limit or remove listings from sellers who refuse to comply with new regulations. eBay assures sellers that the new payment system is simpler, convenient, and gives buyers more payment options.
The company’s decision to sidestep PayPal is a significant milestone in their twenty years of partnership. PayPal divorced from eBay in 2015.
With the new system, PayPal fees will be excluded from the payment process. Although eBay immediately pushed its own fees up, it says that sellers pay less now than they did before. Sellers will now be charged 12.8% of the final amount including delivery, plus $0.30 in America and 30 pence in the United Kingdom. By comparison, the old system included 10% for eBay, plus PayPal fees, plus 30 pence or $0.30. Simple math shows that now sellers will be charged less or at least the same amount.
