It’s here, eBay sellers: As of July 20, 2020, eBay Managed Payments (a.k.a. MP) is rolling out not only site-wide at ebay.com, but also worldwide as well. As an early adopter, I’m totally on board with MP, and you should be, too!
Why? In a nutshell, because Managed Payments offers more payment options for buyers plus a streamlined process for sellers. Win-win! Let’s take a look at how eBay’s introduction of Managed Payments is working out so far.
eBay announced the upcoming launch of its new Managed Payments program on January 31, 2018. On that same date, the company also provided further details in a corporate blog post. Both posts promised certain key benefits for both buyers and sellers.
- More payment options, including Apple Pay and Google Pay
- An easier, seamless, integrated Checkout experience
- Lower costs plus more control of their economics, including…
- A simplified pricing structure
- More predictable access to funds
- A central place from which to manage their business (Payments integrates with Seller Hub)
- Greater buyer reach and improved conversion (i.e., more sales)
Two years later, it’s clear that eBay is delivering on all of those promises. I joined eBay Managed Payments while it was still in beta, and I’m so glad I did, because I was able to provide feedback on the new system and help shape its future.
What I like best is that eBay automatically deposits my payouts directly into my business’ bank account. Now I don’t have to transfer funds from PayPal! I chose to get paid every day, but you can opt for weekly or monthly payouts as well.
Who Handles the Money?
In Managed Payments, eBay serves as the intermediary for payments from buyers as well as to and from sellers. (You can pay your eBay fees via MP if you like.) The actual processing of those payments is handled by Ayden, a global leader in payment technology.
This Dutch company was founded in 2006. Its name means “New beginning” in the language of the former Dutch colony now known as Suriname, and its mission was innovation: a “friction-less, state-of-the-art infrastructure” for use with payment methods around the world.
Today, Ayden’s system allows businesses to accept payments from consumers in more than 150 different currencies via some 200 payment methods. As of this year, Ayden has processed more than $50 billion for the likes of Netflix, Uber, and Spotify, among others — and now, eBay Inc.
How eBay Managed Payments Works
The basic premise of Managed Payments is simple: Instead of eBayers having to link their eBay and PayPal accounts, buyers make payment directly to eBay, who then disburses the funds to sellers. Yes, there’s a processing fee, just as with PayPal, but sellers can generally expect lower fees overall.
As of the end of Q2 2020, eBay is managing payments for nearly 42,000 sellers in the US and Germany. They’ve processed $4.7 billion in GMV (Gross Merchandise Volume) in those 2 countries. Meanwhile, those 42,000 sellers have saved an impressive $17 million in transaction fees!
As eBay rolls out internationally, listings on the company’s international sites will be supported. Until then, international sales must be made through ebay.com. In addition, eBay Managed Payments now supports GSP (Global Shipping Program) transactions.
MP does not yet support eBay for Charity, but it will at some point in the future.
Meanwhile, MP sellers can now accept payment via:
- Credit cards: Visa, Mastercard, Discover
- PayPal Credit
- Apple Pay (through eBay Mobile only)
- Google Pay (through eBay Mobile or desktop computer)
More ways to pay means more buyers choosing to shop on eBay, and that means more sales for you!
How to Sign Up
The most recent wave of sellers was invited to join eBay Managed Payments by July 15. If you’ve not yet been invited to get with the program, don’t fret! Just go to eBay’s Seller Center home page at ebay.com/SellerCenter. Scroll down to “Trending Topics”, select “Managed Payments”, and click “Register Now”. Or just go straight to ebay.com/StartPayments.
To express interest and share feedback about eBay Managed Payments, send email to email@example.com.
What You’ll Need
If you don’t already have a bank account for your business on eBay, now is the time to set one up. You don’t even have to go to the bank in person — you can open your business account online or via your bank’s mobile app. Just be sure that the name or business name on your business account matches the name or business name on your eBay account! It can even be a DBA (doing business as): Your Name dba Your eBay Store Name.
In order to activate your account, you’ll need to verify your identity and business information. That includes:
- What kind of business you have (i.e., sole proprietorship, partnership, LLC, or corporation)
- Your Social Security number or Employee Identification Number (EIN)
- Your bank account information
A July 16 eBay announcement titled “An Important Update About Managed Payments” explains why this is necessary.
Some sellers have expressed concern over having to share such highly sensitive information with eBay. To them I say: Pull up your eBay panties, and get on with it! You had to share the same information when you opened your PayPal account. It’s just part of doing business. And if you’re not serious about your business, then you shouldn’t be in business!
For a complete list of exactly what you’ll need in order to get registered and what to expect once you’ve completed the registration process, download the eBay Managed Payments Checklist.
After you’ve successfully registered for MP, you’ll be notified of your account’s activation date two weeks in advance. You may also receive a separate message asking you to add or verify additional information.
Furthermore, now you’ll be able to participate in discussions on the private Managed Payments board in eBay’s Community space. It’s a terrific place to get tips from your fellow MP sellers along with exclusive content designed to help you get the most out of Managed Payments!
eBay Managed Payments: the Bottom Line
eBay Managed Payments will be mandatory for all eBay sellers within the next 18-24 months. But why wait to be dragged into the program kicking and screaming? Register now, and start reaping the benefits of MP!
Sure, change is always nerve-wracking. I get nervous, too, but I always trust eBay to have my back. And I have faith that every change eBay makes is designed to help make me a better seller.
In the case of Managed Payments, it’s also going to make eBay better by completing the platform’s transition to a modern managed marketplace. Sure, there may be a few hiccups along the way. There always are, anytime there’s any kind of change in any system — online or off.
But here’s the bottom line: Running your business is simpler when eBay manages your payments, and buyers have more ways to pay, as in give you their money. So trust eBay, trust Ayden, trust the system, and sign up for MP ASAP!
The Evolution of Payments at eBay
To help you to understand why July 20, 2020 is such a significant date for Managed Payments, here’s a brief timeline of eBay’s payment journey.
1995-1998: eBay sellers accept payment via check, cash, and money order.
1999: PayPal comes online and is an instant hit with eBay buyers and sellers
2000: eBay teams up with Wells Fargo to offer Billpoint as its first integrated online payment processor
2002: eBay purchases PayPal in July, shortly after PayPal’s IPO
2015: eBay and PayPal split into 2 separate companies
2020: PayPal’s Operating Agreement with PayPal (which governed how quickly eBay could scale its management of payments) ends on July 20
2021: A majority of sellers will be transitioned into Managed Payments
2022: Worldwide rollout of Managed Payments will be complete
2023: Agreement with PayPal to continue as an eBay payment method expires in July
Where to Find Important Information about Managed Payments
Here are some other key MP-related links:
- Managed Payments Center in the Help Hub (for MP sellers)
- MP Fees Overview
- eBay’s tax policy
- eBay’s taxes and import charges policy
- International shipping for sellers
- Handling disputes as an MP seller
- Updating your bank account information
- Updating your personal information