We have become aware of several reports from eBay sellers claiming they received a survey from eBay asking if they would be willing to pay a fee to expedite payouts from eBay Managed Payments to their bank. The speed of payouts has been one of the big complaints many sellers have about the eBay Managed Payments program as it seems to take much longer than with PayPal or other popular payment services.
For example, PayPal and Apple Pay free transfers take about 1 to 3 business days, with most transfers only taking requiring one business day. By comparison, eBay’s Managed Payment transfers can take up to 7 business days after payment is received.
PayPal, Apple Pay, Venmo (a PayPal company) all offer instant transfers for a fee of 1%, with a maximum fee of $10 (Apple Pay also has a minimum fee of 25 cents). Usually, instant transfers are available in a user’s bank account within minutes.
The eBay survey appears to suggest offering a similar fee for quicker transfers, but it may still not be the instant option other payment services offer. Apparently, one option sellers could pick in the survey asked if they would prefer to wait 3 or more business days for payouts without a fee, and that suggests the “quick” option may be the same option PayPal and other services provide at no charge.
As far as the fee eBay is considering to charge, there appears to be either two different surveys or sellers interpreted the survey differently. One seller reports the fee mentioned in the survey is 2%, while another claimed that the fee is up to $2. Since we have not seen the survey, it’s possible that it could be 2% with a maximum of $2.
Regardless of what the details of the fee are, one troubling aspect of this survey is that eBay’s quick transfer option, if implemented, may not be instant as other payment services offer and that it will again look to sellers that eBay is just trying to squeeze out more profit from each sale.
Fundamentally, there is nothing wrong with eBay wanting to manage payments themselves; many other marketplaces do the same. But if the company is unwilling or unable to offer services that are on par with industry leaders like PayPal or Apple Pay, then it will continue to put a dark cloud over the program, one it desperately needs to get rid of.
We will update this post if we learn more concrete information about this survey.
Connect With Us And Other Small Business Owners
Please head over to our Facebook Group for Small Business Sellers and interact with other small business owners.
Subscribe to Our Newsletter
Business Insights for Your Online Business Presented with a Dash of Humor
We do not share your information and you can unsubscribe anytime.