eBay Managed Payments What You Want To Know Right Now!

In this video, I'm going to answer your top questions about eBay managed payments. Everything from the fees to seller protection to working capital loans. And make sure to stick around for your number one top question about managed payments. What's up everyone? Paul here from dropshippingtitans. com and we're going to get right into the content here. So, if you appreciate

that, I would appreciate you giving this video a thumbs up. So today I'm answering all your top questions about managed payments. Everything that you need to know about it before it starts

rolling out for you later this year. First, a lot of people aren't even quite sure what manage payments is. So let's quickly cover that. So manage payments is the new way that eBay is going to start collecting payments on eBay. So in the past when you used to sell on eBay you actually got paid through PayPal. So it was like a dual website system and now you will sell and get paid in the same place on eBay. Now why is this

happening? Well first of all it's happening because it's a more streamlined process for eBay sellers and buyers. You get paid and you sell on one place and buyers will be able to do the checkout directly on eBay instead of having to go over to PayPal first. This is the industry standard at this point. When you go shopping on Amazon. com or walmart. com or any other retail website, you make the purchase on that website and you actually pay for the item on that website as well. And finally, let's face it, this is going to put more money in eBay's pocket. You know, eBay used to own PayPal and they kind of broke apart a number of years ago. And I'm not sure if eBay regrets that, but it is quite evident at this point that they wish that they were still the payment processor. And that's what they're looking to do to make it so that more of this money is going in their pocket instead of in PayPal's pocket. Now, what

are the benefits of managed payments besides just eBay making more money? Well, first of all, we are going to see more consolidated reports. So, we're going to get one report just from eBay. So, right now as sellers, we get reports from eBay and from PayPal as well. It's kind of up to us to reconcile the two of them. But now, it's all going to be in one place, one report from eBay. It's going to have our payments and all our fees. So, that's going to make it a lot easier. In addition to that, the fees will be consolidated as well. As I mentioned, we're not going to be given or be charged an eBay fee and a PayPal fee. It's just basically one eBay fee and a couple of other fees as well, which I'll cover. And there's going to be more ways for buyers to actually pay for the items, including things like Apple and Google Pay.

Now, a lot of people have been kind of wondering like what is this going to look like? Because right now we see the money inside our PayPal account when we get paid. Where is that money going to be? This is a huge question that I know a lot of you have been kind of wondering. Now, for the large part, for the most part, it's going to look very similar to what the system looks like right now. eBay is not going to change all that much, but instead of getting money into our PayPal account, we are going to have money held in our eBay account, and it's going to be held there until we transfer it out to our banks. Now, you can have it set up so that it automatically transfers every day or every week from your eBay manage payment account into your bank account or you can manually start that transfer process. But I think most of us are going to have it done automatically. So that money, you're going to see it inside your eBay account, similar to how you see it now inside your PayPal account, but with some more limitations than we would normally see with the existing system under PayPal. Which brings me to the next most common question I get, which is how quickly are we able to get our money out of eBay and into our bank account? Like how quickly can we actually use that money? Because under the current system with PayPal, the money goes into our PayPal account and we pretty much have access to it right away. We can use that money in PayPal to purchase items on other websites that allow checkout with PayPal. So, for instance, I shop a lot on Home Depot, and we can actually use PayPal during checkout on Home Depot. So, any money that comes from an eBay sale into my PayPal account, I can instantly use that on homed depot. com. You can also get a PayPal debit card that will allow you to use that money pretty much anywhere that accepts debit cards. So, we pretty much have instant access to that money. Now, under the new eBay managed payment system, new sellers will still be in a probationary period. This exists even with PayPal right now. So both eBay and PayPal, they want to make sure that any new sellers on their platform are actually reputable sellers that are good sellers. They're not going to try to scam seller uh scam buyers rather. So when you make a sale, they hold your money until you actually upload a tracking number that shows the item is delivered. That's how it works with PayPal currently and that's how it's going to work with eBay under manage payments. The difference is that instead of PayPal holding your money, it's going to be eBay holding your money. Now, once you get through about 1 to 3 months, depending on your sales volume, then that probationary period is lifted and your money will no longer be held. But assuming you're

outside of that PayPal jail or eBay managed payment jail, whatever we're going to start calling it at this point, how quickly will you be able to access your money? Well, it's not entirely clear. I spoke to a few different sellers who are currently using managed payments. Some of them tell me that once they start the transfer process, they have the money in their bank account the next day. Other sellers tell me it takes longer than that. and they're all telling me that during the weekend it definitely takes longer than that. Now, that's kind of be to be expected. Even under PayPal right now, when you transfer money from PayPal to your bank account, it can take 2 to three days unless you pay for instant transfer. But PayPal does have that instant transfer option. And eBay has not said whether they will offer instant transfers or not. That's something that we hope will come and be added down the line. So, we'll just kind of have to wait and see whether that gets added. Okay. Kind of brings me to a next question that I don't see a lot of people asking, but I think it will be a concern for some people, which is, do you need a bank account? Because technically with PayPal under the current system, you don't actually need a bank account because or you don't actually have to use your bank account cuz you could just leave your money in your PayPal account. I've always recommended against that, but I see a lot of people who do that anyway. But

under managed payments, yes, you will need a bank account. I don't know if you actually need a checking account as opposed to a savings account, but you should be using a checking account. And here's why. If you use a savings account, most banks, actually by law, all banks actually limit the number of times you can transfer money out of a savings account. So you actually want that money brought over into a checking account. And then you can make your payments for your inventory from your checking account using a debit card or a credit card that you then pay off with your checking account funds. So that's why I don't recommend you actually put that money into a savings account. Get a business checking account. You're going to need one for managed payments. And make sure of course it's a separate one. Uh this is has nothing to do with managed payments. This is just has to do with general you know business you know good business practice. Make sure your business accounts are separate from your savings accounts. Uh personal accounts I should say. All right. This is a big question that I've been getting a lot which is what kind of seller protections will we have? Is eBay going to protect us? Because right now the way it's set up is if a buyer claims they never receive the item or they say they return the item and they actually don't we get protected by eBay from that. But sometimes what happens is that the buyer opens up what's called a chargeback. They will actually let their credit card company know that, hey, I never received that item. Even if they did, you know, they lie about it sometimes. And PayPal I have found for my accounts has been very proeller. They've always offered me protection. As long as I have a valid tracking number showing that the item was delivered, then even if the buyer opens up a chargeback, PayPal will cover the cost of the chargeback and that cost will not be put onto me. So that's pretty

awesome. The question is, will eBay extend that same protection to us under managed payments? Now, we do know that there is eBay seller protection that's always existed, but it's really not clear if when it comes to these chargebacks if eBay will really have our back as well as PayPal does. So, that's something we're just going to have to wait and see what happens. Uh, it's probably going to be a while before I get that answer because we actually don't get a lot of chargebacks from eBay customers. So, we'll have to switch over the managed payments, then kind of wait for a chargeback to happen, which could take a while. So, this is something we're just going to have to keep an eye on. All right, another big question. Returns and cases. How are the they going to work? Now, it's going to work very, very similar because returns and cases almost always are started on eBay. Yes, buyers can start them on PayPal, but they're pro they almost always start them on eBay. So, it's going to be the same process except streamlined because there's not going to be the option for them to open them on PayPal. So, we only have to look in one place. worry about checking eBay for returns and cases. Now the other difference is that instead of PayPal holding our money. So normally when a return is started or a case is opened, PayPal immediately puts a hold on the order total for that order. Now instead of PayPal doing that now eBay is actually going to do that. So what's going to

happen is you know every single day we are going to be able to transfer money from eBay managed payments to our bank account. But if there's a return or a case that's open that day, the amount that we're going to be able to transfer will be lowered by the order total for the order that has to return or case. And so it's kind of going to be held there in limbo, but the rest of it we can then transfer to our bank account. Now, another big question, and this is a big misconception that I've heard a lot, is, can you still get paid via PayPal? And the answer is no. Buyers will still have the option to pay with PayPal, but it's not going into our PayPal account. Think of it like eBay is going to have their own PayPal account. If a buyer purchases with PayPal, that money is going to go into eBay's PayPal account, but we are only going to get paid through managed payments. So, we can't log into a PayPal account and see any eBay transactions. They're not going to exist there. All the money is going into managed payments. So, yes, buyers can purchase with PayPal, but they that money is not going into our PayPal accounts. And speaking of PayPal, what

about PayPal? Working capital. For those of you who are unfamiliar with working capital, basically this is a business loan from PayPal. And they will give you a loan based on your selling history. And then a percentage from all your PayPal sales will automatically go to paying off the loan. So, it's not like you have to actively be making payments towards that loan. as money comes into your PayPal account, that part of that money, a percentage of that money will then go to pay off that loan. So, the question is, what options do we have instead of PayPal working capital? And that's where the sponsor of this video comes in, Payability. Now, Payability is a business that helps e-commerce businesses with financing their stores, financing their business. And what's really helpful for eBay sellers is their instant advance. They do not run a credit check and they can get you approved in as little as 24 hours. So this is much different than going to a bank because when you go to a bank they ask for all sorts of information. A lot of times they want up to 2 years of selling history. They want to see 2 years of tax returns and it can sometimes take weeks to actually get approved. But with Instant Advance, it really is pretty instant. You get it usually within 24 hours, which means that even if you're making the switch from PayPal over to manage payments, as soon as you make that switch, you can contact Payability and they can then set you up in as quickly as 24 hours. So, you don't have to worry about the fact that there's no longer working capital through PayPal. Now, if you do want to use this service or check it out, I will have a link to them underneath this video. And I do want to thank them for sponsoring this video. Now, there's a whole lot of other things that Payability does. So, for instance, if you're a seller on Amazon, as you know, Amazon holds your funds for 2 weeks before they release that money to you. And what Payability does is that they will actually release a large part portion of that money to you on a daily basis so that you don't have to wait two weeks for your funds and you don't have that cash flow issue. Now, with pretty much all of their plans, they do give you a 2% card credit card to use and 2% that's really, really good. So, it's definitely worth it. If you're looking for working capital, definitely check out Payability. I'll have them linked up down below. So, while we're on the topic of PayPal, let's also talk about 1099s because currently at the end of the year when it comes time to pay our income tax, we do get 1099s from PayPal. Will we be receiving these under managed payments? The answer is yes, but instead we are going to get them from eBay. Now, I as I understand it, the same rules are in effect. Once you hit 200 transactions or $20,000 in sales, that's when you trigger qualifying to get a 1099. All right, let's talk about fees because

a lot of people want to know what kind of fees you're going to see with eBay managed payments. Now, we will see a final value fee and we will still pay insertion fees and subscription fees. Now, I'm not going to go too much into exactly what those final value fees are because I released a very good video recently diving into the fees that we are going to face with managed payments and whether the fees are going to be higher or lower than the current system. So, if you want to check out that video, I will have it linked up in the card up here as well as in the description of this video. If you're worried about the fees, you should definitely check out that video. So another big question is how will these fees be built? And this is actually going to be a bit easier for us as well, a little bit more streamlined. So when it comes to the final value fee, eBay is actually going to deduct that from the order total before they transfer the money to our bank. So in other words, we get, let's say we get an order for $100 and then the final value fee is about $11. So that leaves $89 left over. So we're not going to see the full $100 in our eBay account. We're only going to see the $89. So that's going to kind of streamline things, make it a bit easier. But as I understand it

we are still going to receive an invoice for things like insertion fees, subscription fees, and this other one, which is if your account ran out of money. So let me explain that one real quick. Let's say we were selling on eBay for a few weeks and all of a sudden we decide to stop. We closed down our store or just deleted our all our listings and then two weeks later we have no money in our eBay managed payment account because we weren't making any sales. But then a customer opens up a return. So what happens then? Well, if a customer opens up a return, then what happens is that money there's no money for eBay to hold on to. So, they will then charge us the amount of the return until the return is actually complete. So, it's this is kind of like this gray area. As I understand it, this is the way it's going to work. Um, I'm not sure if that's 100% true, but that's just what I heard. So, we're just going to have to kind of have to wait to see how that one works out. All right, let's blow through some quick

questions that a lot of you might be asking. Will you need to update your listings? Nope. Nothing you need to do. It will all be done automatically.

Uh, will the global shipping program work? Yes, it will. Uh, global shipping program is a very easy way for you to ship items internationally. You don't have to worry about things like import charges and other taxes because eBay handles all that for you. Will

bookkeeping software work with managed payments? Yes, there is an API integration for managed payments. So, any bookkeeping software can link up with it. I know that GoDaddy currently has that set up. I'm not sure about QuickBooks if they quite got it run up and running yet. Another question, when is this happening? For most sellers, it's going to happen by the end of the year. Actually, for a lot of sellers, it's going to happen by the end of July 2020. And if you get an email about this, you must register. That email will tell you must register. So, you must do that. if you don't get an email. This

is what eBay told me. They said they are offering managed payments to sellers that are a good fit for the program. What a good fit means, I don't know. That's what they said. Just keep an eye out for your email inbox. We're all going to get it eventually. So, just keep looking for it. You can also call eBay and ask them. Some people didn't get the email, but when they called eBay, they were told that actually they do have to register for managed payments. they just never got the email about it. And once you register for

manage payments, what does eBay need from you? Is it just like a click of a button and that's it? Well, no. eBay needs some information from you, specifically about your business. So, they want information about your entity type, whether you're a sole proprietor, an LLC, a corporation. They need your address, information like that. And they need information from you, including your social security number. So, that's all information they're going to need. And they are going to need your bank account information so that they can actually transfer the money from eBay to your bank account. Which leads to another question. What about eBay stealth accounts? Now, eBay stealth accounts are if you don't know what they are, then don't worry about this question. But if you are curious, then you can always Google it or look it up on YouTube. I have plenty of videos explaining what eBay stealth accounts are. Now, this managed payments, I anticipate are going to make stealth accounts much, much more difficult because they are asking for information like your social security number and a bank account information, but that's not so difficult. It's really the information about you and your social security number. Now, inside my course, the Stealth Solution, which is a course kind of teaching how to use stealth accounts, I kind of teach stealth accounts differently than most people. Most people will tell you to make up a fake name, a fake address, and all this fake information. And in my stealth course, I really teach that that's really shady. And I don't think that's a smart idea to do things that way. So, I always recommend, you know, finding a family member or a spouse or boyfriend, a girlfriend, and opening up a new account in their name and just running it so it's completely separate from your main account. And under that system, stealth accounts should still work. Now, we kind of have to wait to see what happens. So, this is something I'll be playing with later in the summer. But for now, I think the way I do stealth accounts, it will work. But I think the way that most people do stealth accounts probably won't work at first. People always find a way to make things work. I think it's just going to get shadier and shadier, though. All right. Next question is, will the fees be lower or higher? Kind of already covered this. that the fees will be simplified and in most cases lower but in rare actually be higher. So I really suggest you check out that video I have linked up in the description that goes over in which cases the fees will actually be higher. And kind of the catchall last question is what about everything else? And you know it's still eBay. A lot's not going to change really. It's just the back end. When it comes to the money, that's what's going to change and everything associated with that like cases and returns. Now, I know I didn't answer every question about managed payments. And I think this is going to create even more questions for some people. So, this is only think of this as part one. Part two will be another FAQ about managed payments based on the comment section of this video. So, if you have any other questions about managed payments, please leave them in the comment section of this video so that I can answer them for part two. Or if something in this video wasn't clear, please ask that as well or please let me know that so that I can include a further clarification of that in part two of this video. And just a final word here, this video, just like the last video I made about managed payments, was pretty difficult to make because as a blogger described it a couple years ago, managed payments has kind of been a halfbaked plan by eBay where things are just kind of put together. The rules have changed, the fees have changed. And the most frustrating thing about this is that eBay, they've provided information in different places. So, it's made it very difficult to make this video. If you appreciate it, I would appreciate you giving the video a thumbs up and letting me know in the comment section. I had to go through eBay's FAQs. their eBay announcements, the eBay community forums, read emails. I had to watch all the Facebook lives. I had to actually read eBay's terms of service. And eBay recently held a developers conference online and I had to watch all those videos as well just to get all this information and make sure that it was up todate. So if you appreciate that, I would appreciate you giving the video a thumbs up. And if you want to make sure you don't miss part two of this video or any future updates about eBay, make sure to subscribe to the channel. Thanks so much for watching, guys. I appreciate you. Have a wonderful day. Hey, thanks so much for watching the video. If you want to subscribe to the channel, you can do that by clicking right here. And then I have two videos for you to check out. Click on one of those and I'll see you over in that video in just a few seconds.