eBay Sellers and PayPal Working Capital: Your questions answered

If you sell on eBay, you will probably have heard of eBay Managed Payments, a new checkout experience that enables eBay to manage the end-to-end payment experience on their platform. In the UK, eBay sellers have started moving to this new experience. If you’re eligible for PayPal Working Capital, or have an open advance, here is some information on how the move may impact you and your business.

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 they won’t appear in your PayPal account. eBay has more information on their new payment experience on their website.

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

Automatic repayments relating to your eBay sales 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. Depending on how much of your sales volume is through eBay , it‘s possible that you may not meet the required minimum repayment amount every 90 days and will need to arrange additional payments to repay your PayPal Working Capital advance. 

You can 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’ve recently introduced a new way to repay your PayPal Working Capital cash advance, our eBay Alternative Payment Plan, for customers who are eligible.

What’s the eBay Alternative Payment Plan?

The eBay Alternative Payment Plan enables eligible eBay sellers to repay their PayPal Working Capital cash advance in 12 fixed repayments – paying one twelfth of the outstanding balance every 30 days, replacing automatic sales-based repayments.

Why is the eBay Alternative Payment Plan not available to all eBay sellers?

Eligibility is based on a number of factors including, the advance amount outstanding, the proportion of your total sales via eBay and the expected duration for you to repay your cash advance.

Business is slow at the moment, what can I do if my automatic sales-based repayments are lower than needed to meet the 90-day minimum repayment amount required?

If you are having issues meeting your 90-day minimum repayment amount required, then please call us on 0800 368 7102 Monday to Friday from 8:30am-5:30pm.

I don’t have a PayPal Working Capital cash 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 is likely to impact your application 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 full information we currently use to underwrite your business. 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.

More FAQs can be found on eBay Managed Payments and PayPal here.


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