eBay and PayPal are finally going their separate ways

It looks like almost the two-decade relationship between eBay and PayPal quietly ended.

On Monday, the auction giant quietly updated its Terms of use to inform sellers that very soon, the funds they collect will no longer be credited to their PayPal account. If sellers want to continue getting paid, all funds will need to be deposited directly into their bank account.

“When eBay handles payments, you can sell and get paid in one place, on eBay, without paying a third-party processing fee,” the company wrote in an FAQ about the update. What eBay forgets to mention is that these managed payments come with a new eBay processing fee: $ 0.30 ($ 0.00), plus a certain fraction regardless of the price of an item in the end. That said, the company’s promising sellers say that whatever reduction eBay ultimately takes will generally be lower than the roughly 13% they currently transfer to eBay and PayPal combined.

On a website page explain the new program, eBay noted that the deadlines for all users are “staggered.” Some sellers are be told exchange their PayPal connection with their checking account details before midnight on June 1st. Others, according to eBay, will receive communications from the company sometimes before the end of the year.

This news shouldn’t come as too much of a shock to anyone who has followed the eBay / PayPal saga so far. When PayPal was officially spun from its long-time parent company in 2015, it was with the agreement that it would continue to manage payments for a five-year transition period. Before that fateful day, eBay began rolling out beta versions of an eBay-owned payment processor. in 2018. Towards the end of last year, the company claims that around 340,000 sellers have opted for eBay’s new payment platform.

Reviews so far are… mixed. Some sellers have complained that these new direct deposits can take up to a week instead of the two days promised by eBay. Others reported their deposits completely frozen. Hopefully eBay fixes this problem before managed payments become mandatory for everyone.

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About Kristina McManus

Kristina McManus

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