eBay Sellers and PayPal Working Capital: Your questions answered

If you sell on eBay, you may have heard of eBay Managed Payments, a new checkout experience that enables eBay to manage the end-to-end payment experience on its platform. In the UK, eBay sellers may start moving to the new service from mid-July 2020. If you’re eligible for PayPal Working Capital, or have an open advance, you may have some questions about how it’ll impact your account. We’re answering them here:

What is eBay Managed Payments and will I still be able to use PayPal as a checkout option?

In short, it moves the end-to-end payment experience onto eBay’s platform and means you’ll no longer transact directly with PayPal. You will continue to have PayPal as a payment option for your customers, however PayPal will no longer see individual eBay seller sales, and these won’t appear in your PayPal account. eBay has more information on it’s new payment experience on its website.

I am an eBay seller with a PayPal Working Capital advance, will my automatic repayments continue?

Your automatic repayments will continue until you move to eBay Managed Payments. Once you move, we will no longer see your individual eBay sales which means PayPal will not be able to take automatic repayments from those sales. If you have sales outside of eBay, i.e. on your independent website or in-store, PayPal will continue to take automatic repayments on those sales. It all depends on how much of your sales volume is through eBay so it’s possible that you may not be able to meet the required minimum repayment amount every 90 days and should arrange  to make additional payments to repay your PayPal Working Capital advance. 

You can currently make additional repayments via your PayPal Working Capital dashboard,  directly from your bank account linked to your PayPal wallet, or from your PayPal balance.

We are also working on alternative repayment methods and will contact you once your business moves to eBay Managed Payments.

I don’t have a PayPal Working Capital advance but in my PayPal account, it says I’m eligible to apply. Will that change with eBay Managed Payments?

It depends. If you make most of your sales through your eBay store, the move to eBay Managed Payments will likely impact your ability to apply for PayPal Working Capital in the future. PayPal uses your sales and account history to decide on eligibility for PayPal Working Capital and the amount of funding you’re offered. Without seeing your eBay sales, we won’t have the information needed to underwrite your business. If you only have a percentage of your sales on eBay, you may still be eligible for PayPal Working Capital but we’ll only offer funding on the sales we can see, so you may get offered a lower amount than you’re used to.

That said, we truly value your business and we know how much customers love PayPal Working Capital so we’re working on ways to improve accessibility to PayPal Working Capital. PayPal is also working to make alternative financing solutions available that will let you determine the best way to fund your business.

At PayPal we would love to continue to support you and your business. If you have sales in other channels or marketplaces, or if you’ve been thinking about setting up your own website, we can help. PayPal is a global brand, trusted by more than 24 million businesses and 280 million customers, offering the experience, solutions, and world-class security to support you and your business wherever you sell.

For more FAQs about eBay Managed Payments and PayPal, please visit our FAQs page

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