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Ebay "you will no longer receive payments to your PayPal account"???

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So I go to put up a listing for a Nuon controller and some spare games and the listing never even shows up after an hour. I get different messages from the mobile and desktop sites. Eventually, I find some messages buried in various account settings to the effect that they need my SSN or a Tax ID in order to process future payments, and that my PayPal account will no longer be receiving payments for any items that I list, and that I now need to update my bank account info. "For regulatory reasons", but they also had a message saying that they'll now "Funds from items sold will be deposited in this bank account. You also authorize us to charge this bank account for any money you owe Ebay, such as reimbursing Ebay for refunds or claims". WTF??? When did this all change? I had a listing a few Months ago that worked the same as always. Is this all something new? Whatever the cause of all this is, it's put me off on listing anything at all on Ebay. I don't know why they had to fix what wasn't broken. Combine this with all the bad buyer horror stories I've seen lately and personally experienced and there's no real reason for me to bother selling there any more. Half the reason that I was using PayPal was to ensure that Ebay didn't have a direct line into and out of my actual bank accounts, which is really important given how many bad buyers there are and how arbitrary Ebay can be. The worst part about this is that they send me all sorts of worthless notifications yet don't bother to give me any sorts of heads up on these sorts of changes until after I've already gone through the trouble of creating a listing. /Rant.  

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SSN!? F that. Tax ID, maybe but I'd look into if that's something safe to share. Gov'met gotta get their cut, I guess. Are you sure you didn't get any emails that got put into the trash. I would assume any changes would have been sent to you.
Yeah, Paypal used to allow me to send money to friends for free but I noticed that recently changed so I ain't using them anymore unless the amount is significant. 

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It's due to eBay's split with PayPal. Granted, they split about five years ago but have still been fairly intertwined until lately. You may have noticed that when making purchases on eBay, it no longer defaults to PayPal as the payment source and it makes you log-in to your PayPal account each time. All of this is related, buying and selling. They are shifting to a new payment provider, the Amsterdam-based Adyen. eBay is calling the new payment service "Managed Payments," and you'll never see any references to Adyen. They are making it sound as though it's better than PayPal, as you can use Google Pay, Apple Pay, credit cards, etc., but I did hear a rumor that in order to set up the new service as a seller, you are forced to give more details than you had to with PayPal. Ugh...

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2 hours ago, Justin Payne said:

SSN!? F that. Tax ID, maybe but I'd look into if that's something safe to share. Gov'met gotta get their cut, I guess. Are you sure you didn't get any emails that got put into the trash. I would assume any changes would have been sent to you.
Yeah, Paypal used to allow me to send money to friends for free but I noticed that recently changed so I ain't using them anymore unless the amount is significant. 

Right, it was a huge red flag that they were now asking for highly sensitive information that they previously hadn't. I can definitely confirm that they did not send a single notice about this. They send all sorts of worthless promotions and "deal" listings that are anything but, yet I was never notified about these changes, and it wasn't until I tried to list something that these reared their ugly head.

1 hour ago, sixersfan105 said:

It's due to eBay's split with PayPal. Granted, they split about five years ago but have still been fairly intertwined until lately. You may have noticed that when making purchases on eBay, it no longer defaults to PayPal as the payment source and it makes you log-in to your PayPal account each time. All of this is related, buying and selling. They are shifting to a new payment provider, the Amsterdam-based Adyen. eBay is calling the new payment service "Managed Payments," and you'll never see any references to Adyen. They are making it sound as though it's better than PayPal, as you can use Google Pay, Apple Pay, credit cards, etc., but I did hear a rumor that in order to set up the new service as a seller, you are forced to give more details than you had to with PayPal. Ugh...

Yep, sure have noticed it. I just worry that the extra few moments (and no Ebay, I don't ever want to add a protection plan) might cause me to miss a good BIN on something. As for selling, if there still is a way to ensure that my usual PayPal account is still able to receive payments, I couldn't find it. No way am I giving them my actual bank info. If nothing else, I hope these posts serve as a good heads-up for any other occasional sellers who are planning on putting up a few listings.

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I was able to list something without issue, still linked to my PayPal. That said, I think that eBay is requiring sellers to switch over to the new platform in waves. For example, they're trying to get me to switch over by 12/1 and if I do, they'll give me a $15 coupon. Based on what I've read, all sellers will have to switch over by the end of the year.

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Doing a bit of addition reading up on this new Managed Payments mess makes it clear that in addition to the various risk associated with Ebay having your bank account and SSN info they can also take several business DAYS (depending on them and your bank) to send the payment to you, which in turn can mean several days before you're able to ship an item. Whatever else can be said about PayPal, at least you get your money instantly. 

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I was pushed into the eBay Payouts program last month with no opting out if I wanted to continue selling with them. You're allowed to pay for shipping labels from the associated pending payment, and it's subtracted from what you would have gotten, before it's put into your bank account.

 

There's currently no easy way to check your payouts history (per item, associated fees, paid shipping labels, etc.) I get emails notifying me of payouts being placed in my bank account, but when I click the payout ID link it takes me to a generic payment FAQ page on eBay.

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I wasn't happy either of them forcing me to managed payments either. What I did ahead of time was to create another checking account at a different bank that is solely used for ebay transactions and nothing else. This way they don't have access to my main checking account.

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This is so ridiculous, when they ask you to give your ssn they say they will store it and not give it out to customers.

 

What happens when eBay is hacked and a guy in India now has your bank account, street address, SSN, and name? 
 

I feel like this will drive many people out of eBay entirely..  

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7 hours ago, The Undecided said:

This is so ridiculous, when they ask you to give your ssn they say they will store it and not give it out to customers.

 

What happens when eBay is hacked and a guy in India now has your bank account, street address, SSN, and name? 
 

I feel like this will drive many people out of eBay entirely..  

I agree- I refuse to give any of these companies that kind of information. I would rather mail a check to a stranger on Facebook for a game than hand out my SSN. The hassle of getting a new account number is far less than fixing a stolen identity!

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8 hours ago, The Undecided said:

What happens when eBay is hacked and a guy in India now has your bank account, street address, SSN, and name?

Your information's probably already out there courtesy of the Equifax/Capital One breach.

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I can understand the concern in giving out your SSN, but unless you were somehow immune to numerous breaches over the last decade, chances are you SSN is already out there on the dark web. I know that mine was compromised during the breach with one of the big credit reporting firms because I started getting mail from my State's Unemployment agency telling me my unemployment claims had been accepted etc. I was like what?! Because I'm still thankfully employed and hadn't applied for unemployment benefits in well over 13 years?! Turns out my account info had been compromised because all that was required to restore access to the account was the SSN and name. I've since had to go in and change all of these details, but I later found out that my SSN was compromised during one of the many breaches. So...yeah... 

 

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Yeah, eBay is pushing everyone into their new Managed Payments program.  It's an obvious cash grab on their part, as they can now play the role of a payment processor and siphon off some of the fees associated with that.  Additionally, they now sit on your money for a few days before sending you the payment, meaning they are earning a ton of interest when you consider how many people use eBay.  Etsy works on the same principle, although I don't think Etsy pays you until after you've shipped the order (this may also be true with eBay, but I always try to ship within 24 hours so no idea if they won't pay until you ship). 

 

So, yep, it's another company that requires your SSN or EIN before you can proceed to get payments.  And another 1099 to deal with at tax time, depending on how much you sell on eBay.

 

 ..Al

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2 hours ago, Bratwurst said:

Your information's probably already out there courtesy of the Equifax/Capital One breach.

So it's okay to take more risks with your personal information..?

 

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3 minutes ago, ls650 said:

So it's okay to take more risks with your personal information..?

Unfortunately, unless you're running a business and can provide an EIN, if you want to continue selling through eBay you will need to give them this information.

 

 ..Al

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1 hour ago, Albert said:

Unfortunately, unless you're running a business and can provide an EIN, if you want to continue selling through eBay you will need to give them this information.

 

 ..Al

I'm curious to know how they are handling folks outside the USA who don't have a SSN....

Never mind, I googled it:

 

https://community.ebay.ca/t5/Seller-Central/Canadian-Banks-and-US-dollars-Managed-Payments/m-p/442445#M116384

 

Edited by ls650

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I did some additional research on this topic and multiple forums claim that PayPal requires a SSN to receive payments, too. Can anyone confirm? I certainly don't recall, as it's been 20 years since I set up my PayPal. 

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6 minutes ago, sixersfan105 said:

I did some additional research on this topic and multiple forums claim that PayPal requires a SSN to receive payments, too. Can anyone confirm? I certainly don't recall, as it's been 20 years since I set up my PayPal. 

This is absolutely true, as a payment processor they need this information so they can submit this income data to the IRS if you go over the yearly threshold (you exceed $20,000 in payments and have more than 200 transactions during the year).  You're not going to be able to avoid this if you are using any payment processor.

 

 ..Al

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3 minutes ago, Albert said:

This is absolutely true, as a payment processor they need this information so they can submit this income data to the IRS if you go over the yearly threshold (you exceed $20,000 in payments and have more than 200 transactions during the year).  You're not going to be able to avoid this if you are using any payment processor.

 

 ..Al

Makes sense. But then it sounds like the new eBay Managed Payments isn't that big of a deal? People want to stay with PayPal, I get that, it's familiar and works mostly as it should, etc., but I suppose giving your SSN to eBay isn't much different than giving it to PayPal?

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Just now, sixersfan105 said:

Makes sense. But then it sounds like the new eBay Managed Payments isn't that big of a deal? People want to stay with PayPal, I get that, it's familiar and works mostly as it should, etc., but I suppose giving your SSN to eBay isn't much different than giving it to PayPal?

No, except you are giving this information to another company, so the risk of a data breach where your data is stolen increases. 

 

 ..Al

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7 hours ago, Albert said:

This is absolutely true, as a payment processor they need this information so they can submit this income data to the IRS if you go over the yearly threshold (you exceed $20,000 in payments and have more than 200 transactions during the year).  You're not going to be able to avoid this if you are using any payment processor.

 

 ..Al

In some states, the limit is $600.

 

Although I am not in one of those states, note that $20k/200 transactions is just a guideline, as Paypal sent a 1099k to the IRS for me last year, and the total was nowhere near $20k and it was under 200. It was no big deal because I report the Paypal sales anyway, but I could imagine it could come as a shock to those just wanting to earn a little extra money selling things on the side on eBay.

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8 hours ago, sixersfan105 said:

I did some additional research on this topic and multiple forums claim that PayPal requires a SSN to receive payments, too. Can anyone confirm? I certainly don't recall, as it's been 20 years since I set up my PayPal. 

Yup.  PP has had my SSAN since I signed up in 1998 or 1999.  In fact, when I opened another PayPal account for my business, we had to go through several iterations of application because, as the principle of the business, PP concluded I was opening duplicate accounts due to the same SSAN.  (You provide your company's EIN, but it also requires a responsible person's SSAN.  That might have changed since 2006.)

 

1 hour ago, batari said:

In some states, the limit is $600.

 

Although I am not in one of those states, note that $20k/200 transactions is just a guideline, as Paypal sent a 1099k to the IRS for me last year, and the total was nowhere near $20k and it was under 200. It was no big deal because I report the Paypal sales anyway, but I could imagine it could come as a shock to those just wanting to earn a little extra money selling things on the side on eBay.

Maybe for state income tax, but not federal.  One of the banking or tax reforms coming out of the housing bust requires that ALL payments be reported.  If I sub out to some schmoe to run equipment across town, and even if I only use him once during the year, I have to 1099 him for the $75 he charges.  F-ing ridiculous amount of administrative work, now.

 

Technically speaking, anything you sell at personal profit is supposed to be reported to the IRS, irrespective of the type of sale: eBay, yard sale, etc.

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All the responses and insights are much appreciated! As the Holiday buying and selling season ramps up, I think a lot more casual Ebay sellers are going to be surprised by these new Managed Payments requirements. I know that I won't be the only one who they'll lose over this.  Sure, it might be legally required, but even that is only because they're trying to become their own payment processor of what seems to be very shortsighted greed. Even if I did decide to jump through all the hoops, put my SSN and bank info at greater risk, go through the trouble of setting up yet another checking account, I would still still have to be willing to wait up to several Business Days to get paid. With PayPal, the payment was instant. Now, I have to wait, and that's the real deal-breaker. 

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hate ebay

 

hate paypal
 

Quote

 

Maybe for state income tax, but not federal.  One of the banking or tax reforms coming out of the housing bust requires that ALL payments be reported.  If I sub out to some schmoe to run equipment across town, and even if I only use him once during the year, I have to 1099 him for the $75 he charges.  F-ing ridiculous amount of administrative work, now

 

 

 

This is disgusting. At what point will they eliminate cash? I guess I'll start accepting bitcoin as payment.

Edited by CaptainCanadian

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1 hour ago, CaptainCanadian said:

At what point will they eliminate cash? 

 

I believe that is the ultimate goal, sadly.

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