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Gloucestershire Business News

New eBay fees reduce cost but take longer

A shake up of payment processing at eBay means it could cost Gloucestershire residents and businesses a little less to use the service but payment will take longer.

eBay is moving its payment processing away from PayPal and will instead handle it themselves.  Shoppers will still be able to use PayPal to make purchases but payment methods will be expanded.

Paypal currently gets 2.9 per cent and 30p per transaction, with eBay taking up to 10 per cent, depending on the item.

Without Paypal, eBay will get a higher fee of 12.8 per cent and a fixed fee of 30p per transaction, which works out at slightly less to pay overall for users of the service.

The payment is called a 'final value fee' and is a percentage of the sale price, including delivery.

Sellers will have to wait longer to get their money after a sale. While payment lands immediately in Paypal accounts, eBay's own processing will take two business days and it could take up to four days for the funds to clear.

Money will go straight into sellers' banks accounts and sellers can also choose to have these payments scheduled to drop in their accounts daily or weekly.

Another change is that eBay will now accept more types of payment.

As well as PayPal, credit or debit card, eBay will now accept Apple Pay and Google Pay.

The changes are being rolled out to private sellers already and everyone will use this new process by the end of 2021.

Sellers will receive an email asking them to make the switch away from PayPal.

Money from sales will no longer be paid into your PayPal account and you'll have to connect a bank account to receive payment.

PayPal customers will be charged £12 a year if they don't use accounts from December 16 - but there are steps you can take to avoid it.

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