PayPal Cancels Billing Agreement with eBay: What Does it Mean for Online Sellers?
Recently, PayPal announced that it will no longer issue billing agreements with eBay. This decision will have a significant impact on online sellers who use the platform to sell their products. In this article, we will explain what a billing agreement is and highlight the implications of PayPal`s decision for eBay sellers.
What Is a Billing Agreement?
A billing agreement is a contractual agreement that allows a third-party merchant (in this case, eBay) to charge a buyer`s PayPal account for purchases made on their platform. Sellers can set up a billing agreement with PayPal to avoid entering their payment details manually every time they make a purchase. By setting up a billing agreement, PayPal stores the buyer`s payment details, making it easier to make future transactions.
What Does PayPal`s Decision Mean for eBay Sellers?
PayPal’s decision not to issue billing agreements with eBay means that eBay sellers will need to find another way to receive payments from buyers. The change will take effect on September 30th, 2020, and any existing billing agreements will be canceled at that time. The decision is part of a larger transition of eBay`s payments, which aims to make the process of buying and selling on the platform more seamless.
So, what are the implications of PayPal’s decision for eBay sellers? For one, it means that sellers will need to look for alternative payment options that eBay accepts. eBay currently allows sellers to receive payments through eBay managed payments, credit cards, debit cards, and gift cards. However, it is worth noting that eBay managed payments is not yet available in all countries where eBay operates.
Another factor to consider is that sellers may lose the benefits of using PayPal, such as buyer protection and a streamlined checkout process. These benefits have helped to build trust between eBay buyers and sellers and have been a significant factor in eBay`s success.
However, there is some good news for eBay sellers. According to eBay, managed payments offer benefits such as lower payment processing fees, simplified sales record-keeping, and faster access to funds. Additionally, eBay managed payments does not require sellers to have a PayPal account, which could potentially save them money on PayPal fees.
Conclusion
PayPal`s decision not to issue billing agreements with eBay is a significant change for online sellers. While PayPal has been a popular payment option for eBay sellers, there are alternative payment methods that sellers can use. The transition to eBay managed payments is a step towards making the buying and selling process on the platform more seamless. Sellers who embrace the changes and adapt to the new system will be well-positioned to succeed on eBay.
