eBay buyers will soon be able to use credit, debit cards, and other paywall services like Apple Pay.
If you sell a lot of items on eBay, a change is coming your way. Beginning sometime this summer, eBay will no longer allow sellers to get paid via PayPal.
Buyers will still be able to use PayPal to pay for items, but sellers will be required to use the company’s new direct debit system. Sellers cannot opt out and must have a bank account in order to get paid for sales on the site.
In addition to PayPal, buyers can pay with credit and debit cards, Google Pay and Apple Pay. The coronavirus forced brick and mortar retail businesses to move to the internet to sell products. A report published by eBay in May showed a 34% increase in business listings on the platform from April 1 to September 30, 2020.
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After the news was announced, sellers took to social media to complain about the increased cost and privacy issues. Both PayPal and eBay charge sellers a fee for each transaction. Even though sellers will no longer pay charges to PayPal, eBay is charging fees to sellers that are the same or higher than the PayPal fees. Some sellers are also worried that giving eBay their bank information will allow the platform to issue chargebacks without going through an arbitration process.
Soon, eBay sellers will also have to pay more taxes due to a new provision in the American Rescue Plan. Currently, companies like eBay only have to send 1099-K when sellers reach 200 transactions or have sales over $20,000. Beginning in 2023, companies will be forced to send sellers a 1099-K for any sales above $600.