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PayPal Working Capital and eBay Managed Payments: Q&A

What is eBay Managed Payments?

eBay Managed Payments allows eBay to manage transactions on their platform, which means eBay Sellers will no longer transact directly with PayPal. Buyers on eBay will still be able to pay with PayPal, but eBay will deposit these sales directly into the seller’s bank accounts (rather than through the sellers PayPal account).

For more information, visit eBay's website here

 

Will PayPal be an option in eBay Managed Payments checkout?

eBay sellers will still have PayPal as a payment option in eBay Managed Payments checkout, so buyers will still be able to pay with PayPal. However, as eBay will manage transactions on their platform, eBay Sellers will no longer transact directly with PayPal.
 

I have an open PayPal Working Capital advance. Once I move to eBay Managed Payments, will I be able to continue to repay my PayPal Working Capital advance as I always have?

No, once you move to eBay Managed Payments, even when PayPal is included as a checkout option, we will not be able to see your eBay sales and therefore, will not be able to take automatic repayments from those sales to repay your PayPal Working Capital advance

We will still automatically deduct the PayPal Working Capital repayments from any other sales processed by PayPal. So, depending on the percentage of your total sales that are made on eBay you may not be able to meet the required minimum repayment amount every 90 days and will need to make additional payments to repay your cash advance.
 

Will my move to eBay Managed Payments affect my future access to PayPal Working Capital?

It will depend on your volume of sales through eBay. 

As PayPal will no longer be able to underwrite your PayPal Working Capital application using your eBay sales, this may result in a lower offer amount or impact your eligibility.
 

Can I still access PayPal business funding once I move to eBay Managed Payments?

We truly value your business and we are working to make alternative financing solutions available that will continue to help your business prosper and let you determine the best way to fund your business. 

We will keep you updated as new capabilities and features are released.
 

Once I move to eBay Managed Payments how can I repay my PayPal Working Capital advance?

Once your business moves to eBay Managed Payments, if your sales through PayPal are insufficient to meet the 90-day minimum repayment, then you should arrange to make additional repayments. You can currently do this by:

  • Making additional repayments from your PayPal balance
  • Setting up payments directly from your bank
  • Setting up an eBay Alternative Payment Plan which is available subject to eligibility. If you are eligible to enrol onto this plan, we will contact you or you will see a banner on your Working Capital dashboard.

Alternative repayments, if needed, are quick and easy to set up directly from your PayPal Working Capital dashboard.

You can also repay your advance in full without early repayment fees.

If you would like to discuss repayment options or need further assistance, please contact 0800 368 7176 Monday to Friday from 8am-6:30pm.
 

Can I continue to use PayPal after the move to eBay Managed Payments?

At PayPal we value you as a customer and would like to continue to help and support you and your business.  If you have sales in other channels or marketplaces or want to setup your own online store, then we can help you with this.

PayPal is a global brand that is widely trusted by over 280m consumers, so we have the experience and solutions to support you and your business wherever you sell.
 

What is the eBay Alternative Payment Plan?

As an eBay seller, the move to eBay Managed Payments, now or in the future, may make it more difficult to repay your PayPal Working Capital cash advance. To help support you and your business we’re introducing a new way to repay, the eBay Alternative Payment Plan - 12 automatic fixed repayments from your preferred bank account, scheduled every 30 days. Please note the Payment Plan is subject to eligibility.
 

How it works:

The Payment Plan is designed to make it easier for customers to manage their repayments. Eligible customers can enrol onto the plan via their PayPal Working Capital dashboard. There’s no additional fees or charges and no changes to the minimum payment requirement under your existing PayPal Working Capital agreement.

If you choose to repay your PayPal Working Capital advance in 12 fixed payments your sales-based repayments will be paused. Your scheduled payments will be collected from your verified bank account – the first one 7 days from enrolment with the remaining 11 payments collected every 30 days. You’ll receive a confirmation email, 2-5 business days after enrolling, detailing the dates and amount of all 12 scheduled payments.
 

Why should I sign up for the eBay Alternative Payment Plan?

With 12 fixed payments taken from your linked bank account it’s a hassle-free way to repay your cash advance and ensure you meet your 90-day minimum repayment amount - your fixed payments are made automatically every 30 days, so you don’t need to remember to manually schedule additional repayments if needed.
 

I haven’t yet been moved to eBay Managed Payments. Can I enrol onto the eBay Alternative Payment Plan?

Yes, if eligible you can enrol on to the Alternative Payment Plan even if you have not yet moved to eBay Managed Payments.
 

Are there any additional costs associated with moving to the Alternative Payment Plan?

No, there are no additional costs.
 

If I decide to move to the Alternative Payment Plan, will the whole of my outstanding balance be repaid through fixed payments or just what I would have paid with my eBay sales?

If you enrol, the whole of your outstanding balance will be repaid by the 12 fixed payments and your automatic sales-based repayments will be paused.
 

How long will it take for my sales-based payments to be paused and my automatic, fixed payments to begin?

Once you enrol, it will take 2-5 business days for your sales-based repayments to be paused.  Your first payment date will typically be 7 days from your enrolment date.  After that, a payment will be withdrawn every 30 days until your cash advance is repaid in full.
 

Will my sales-based repayments taken during the 2-5 days between enrolling and them being paused reduce my outstanding balance and the fixed payments shown in the enrolment process?

Yes, your outstanding balance will be reduced if you make sales-based or manual repayments before your sales-based repayments are paused.  Your confirmation email will reflect a reduced outstanding balance, and as a result, the reduced amount of each fixed payment.
 

Can I change the number of instalments?

No, the Payment Plan is only available in 12 fixed instalments.
 

Can I make additional manual payments to repay my cash advance sooner?

Yes, you can make additional manual payments via your PayPal Working Capital dashboard from either your PayPal or bank account. If additional manual payments are made after enrolment on the Payment Plan your final payment will be reduced by any amounts you’ve paid manually, or you may make fewer fixed payments.
 

Can I change the bank account I use to make automatic fixed payments?

Yes, you can change your bank account by calling us on 0800 368 7102 Monday to Friday, 8.30am to 5.30pm
 

Can I cancel automatic fixed payments?

Yes, you can cancel your fixed payments at least one business day before the payment is due by calling us on 0800 368 7102 Monday to Friday, 8.30am to 5.30pm. Please note, you will still need to meet the 90-day minimum repayment amount required in your agreement.
 

What if I miss a payment?

If you miss a payment, we may call you to check everything is okay and if you’d like to reschedule the payment but, so long as your minimum repayment amount is met every 90 days, you will not be in breach of your agreement.
 

Does enrolling in the Payment Plan change the terms and conditions of my cash advance?

No. Your terms and conditions remain unchanged – your minimum repayment requirement amount remains relevant and the Payment Plan is designed to help you meet these obligations. PayPal acts to waive it’s right to reclaim sales-based repayments which are paused during the duration of the Payment Plan.
 

Does enrolling in the Payment Plan change my minimum payment requirement?

No, your minimum payment requirement remains in place after you enrol in the Payment Plan. 
 

I don’t currently have a bank account linked to my PayPal Working Capital account. How do I add a bank account so I can enrol in the Payment Plan?

You can add a bank account by clicking “Link a bank account” when you’re completing the enrolment process which will take you to your PayPal account where you can click on your profile, and then add a bank account.  
 

I don’t sell on eBay.  Can I sign up for automatic fixed payments?

Currently, this repayment option is only available to certain eBay sellers. If you are having difficulty paying your PayPal Working Capital cash advance, please call us on 0800 368 7102 Monday to Friday from 8:30am - 5:30pm to see how we can help.
 

How will I know if the eBay Alternative Payment Plan option is available to my business?  

If this option is available to your business, you will receive a notice on your PayPal Working Capital dashboard.  The option is only available to certain eBay sellers with open PayPal Working Capital cash advances, and can change based on various factors, including your outstanding balance and minimum payment requirement.

If you are having difficulty paying your PayPal Working Capital cash advance, please call us on 0800 368 7102 Monday to Friday from 8:30am - 5:30pm to see how we can help.

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