Sellers on eBay Inc (NYSE: EBAY) can now be paid directly on the platform, according to their new terms of use. Sellers won’t have to get their payments via Paypal Holdings Inc (NASDAQ: PYPL) anymore.
In 2002, PayPal acquired eBay, and the two huge companies have been working in tandem ever since. Even though you can still get your payments via PayPal if you wish, sellers now have the option of getting direct bank account payments.
However, some eBay sellers aren’t too happy about this new move and are even threatening to stop using the platform altogether.
Forums on eBay have numerous posts from sellers who aren’t too eager about the new system and don’t want to use it. In addition, many of them don’t want the platform to have access to their bank accounts in any way, even if it’s just direct debit access.
However, the new terms, which’ll come into effect on 1st June, state that the new payment methods are compulsory. Furthermore, they state that eBay has the power to both removes or limit the listings from eBay sellers that don’t abide by the new rules.
eBay claims that the new payment method is convenient and simpler to use and provides buyers with more options. They also say that the rollout will happen gradually.
This marks a huge change in a partnership that lasted almost twenty years.
What will change?
This new payment method means that sellers won’t have to worry about the PayPal fees add-ons. However, eBay’s fees are slightly higher. But, it claims that most folks will pay more or less the same as what they used to pay before.
Buyers will now be able to automatically access all the payment options available on the platform, including PayPal Credit, PayPal, Google Pay, Apple Pay, debit and credit cards. However, eBay will now need two working days to process payments, which PayPal used to do in one.
What’s the problem?
The new terms make this payment procedure mandatory.
This is something many sellers are skeptical about because eBay is known to aggressively protect its buyers, even at the expense of its sellers. As a result, many sellers feel like the company favors the buyers more than them.
