PayPal Proposes Direct Deposit for eBay and Etsy Sellers

by: shut1968

That's been the major issue for us.. we'll have to see how this shakes out.

by: DingDong

I was hoping that they were going to do this but for everyone.
I don't need working capital loan.
I just want a way not to give every site my banking information and such.

 

by: Geetar

Yes, "buffer". Thats a great word to describe ebay's sticky fingers being limited.

This is good, I may look into it. I currently have a paypal WC loan right now. Will probably be paid by june, I dont plan on getting another, but maybe a small one.

by: purpleiris

That doesn't work for those of us who don't have working capital loans. The only thing that does work is to refuse to sell on a site that thinks it owns my money.

by: iheartjacksparrow

"PayPal is proposing...." Has PayPal actually discussed this plan with eBay or Etsy? Sending out a survey seems like a waste of time unless PayPal already has the sites on board with their plan. Unless they are hoping to get overwhelming positive survey results that they can then use to coerce eBay and Etsy into agreeing to this plan.  

by: Shanna

Paypal does have leverage over eBay. Ebay buyers are not going to give up paying with Paypal, and Paypal can ask eBay to play nice with them, or eBay can pay the 2.9% + $0.30 just like everyone else.

by: grumpwell

I would be concerned with getting an IRS notice for $ processed by managed payments and then an additional IRS notice for the money coming into the PayPal account. With the reporting rules it might make it look like I have twice as many sales as I actually do...

by: shut1968

All they have to do is alter their system a little to be even more like a bank, have a routing and account number for ACH deposits and it's done, you register that with Ebay instead of a bank account and your good to go.  As long as there are no PayPal fee's I'm good with it.

by: shut1968

In reality if they did that (what I posted above) they wouldn't need any kinds of permissions from Ebay or Etsy.. while they may be requiring a bank account what they can't do is tell you what bank accounts you can use.

by: Silver Ice King

@shut1968

Don't put money on it that they will not try in the future.  If there is any way that Ebay can monetize which banks they send Sellers money to they will change the policies whether it is legal or not.

by: Whatever

They all just keep mucking it up don't they? Sure there will be no charge - for how long?  I already set up my new clawback account for ebay with my bank. I have another set up for my website thru Paypal. My credit union will give me for free as many as I need.  Getting ready to set up another just for Mercari. And all 3 venues are locked out of my main personal checking account. And I don't need a capitol loan from paypal - shite - just need to get rid of the inventory I already have thank you. Then I'm going fishing.

by: Opalie

I would assume that as the money from ebay would be through direct deposit PayPal would not include that in a 1099 as sales income as they do now.

Even if they did for some reason, it would be relatively easy to reconcile those deposits to the payouts from ebay for tax calculations.

by: Opalie

This isn't just a solution for those with PP WC loans, anyone would be able to use it, but it would mean (hopefully) you could still get WC loans rather than the ebay offered Square Capital loans they're touting.

by: acertainblue

I got excited when I saw this - have grown used to being able to better control my earnings, with payments going directly to Paypal. Have already lost that with Etsy & know that change it coming with Ebay - at which point, Paypal will no longer serve any purpose for me. I hope they offer it for all PP customers & not just Capitol Loans customers. I even use a PP credit card - again, it will no longer serve a purpose if I don't get any direct deposits to my PP account.

by: Tiffee Jasso

I just got a Greendot card visa card which can be considered a bank account and has a routing number. No fees for deposits. Though it does cost $1.95 for the card at Walmart & Walgreens, and you have to put $20.00 on cared when you buy it, then get ap and register card, and then wait for the permanent card Visa card to come with your name on it which means at least two weeks to get the account up and running. You  do have to give them your name, SSA number, and address. You do not need to give them any other banking information or credit cards.  We will see how it goes. But they consider it a bank account with a card, and do have a routing number for deposits just like a regular bank. If it all works out, it is a great way to work around Ebay's grab for your banking, SSA number and bank account for their foreign money processors. Greendot is in US.  

by: Chicago48

buyers pay eBay, which then disburses funds to sellers' bank accounts.
^^
If Uber and Lyft can automatically disburse funds to the driver's account within 48 hours....why can't these ecommerce sites do the same?  At least AMZ has AMZ bank where your money is deposited so you can see it in your account and disburse it when you want to or wait for AMZ to disburse.
I just want a rationale for holding monies....is it so that the ecommerce site can earn interest while it sits?

by: Chicago48

@Tiffee:  I just got a Greendot card visa card which can be considered a bank account and has a routing number. No fees for deposits.
^^
This sounds great.  But I don't want anymore cards and payment system.  Let's see, right now I have 1 credit card, 2 debit cards, 1 business card from PP, a Square account and PP here account.  Not to mention the brokerage accounts that have debit cards.  That's too much for me.  I can't keep track of all these cards.

by: Tiffee Jasso

@Chicago48
My point is that I do not need to pay for a separate bank account as I do not intend to allow foreign payment processors and their partners into my bank account. I have been trying to figure a way around that as I also do not want to pay $25 per month for a new checking account. To me, if this greendot works, then I have a card like I do with Payal, and the only money going into the account comes from Ebay sales. As for cards, I probably have ten or twelve. Only one is a credit card and that is my American Express that I pay off every month. I do not take on debt other than my mortgage. Interest is you working for someone else and not getting a thing out of it but debt.  

by: purpleiris

I wish they'd make it possible for those of us with PP debit cards to use those cards for direct deposit.

by: Jairib

I LOVE it!!