Will eBay managed payments effect my Paypal working capital loan

[barce49]

Got an email from eBay saying that they are making everyone join their managed payments in July.  Currently, I only accept Paypal and with that I have the opportunity to take out a Paypal Working Capital loan based on my activity.  If eBay takes over the managed payments....will I still qualify for these loans and will Paypal direct debit my payment from each sale as they do now?  Any help from the community would be welcome as eBay is still a little shallow on the details of their new service.  Thanks

[CK46]

Yes this is a great question which i would also like to know the answer to ?

[barce49]

Finally got someone on the phone from eBay that knew what was happening.  Apparently they are not going to be working with Paypal anymore.  So unless you have enough business going through Paypal on your own without eBay, you wouldn't have enough payments to qualify for the Paypal Working Capital loan.  

Seems like we will no longer be allowed to choose who we accept payments through.  

[OzAqua]

I have been troubled by this since I first heard of managed payments.

I finally contacted PayPal about this a week ago and was told they are working on a solution which would allow us to have a "Virtual" bank account within PayPal. I assume then we would nominate this as our prefered bank account for deposits from ebay. This would allow PayPal to keep track of our revenue for the purpose of evaluating the amount to offer for business loans, and allow PayPal to automatically deduct repayments as is presently the case. I do wonder if we be required to pay fees on the deposits from ebay to PayPal but I don't know the answer to this.

The support agent also told me they were working to try to have it completed as close to the time that managed payments start here in Australia which is late July, and if they could not meet that deadline they were trying to get it done with as little time as possible between when managed payments begin and when the new solution is available. They said when the new feature is available we would receive notification via email.

Hope this helps others who are in the same boat as me.

I really hope they get this solution to us sooner than later, fingers crossed.

OzAqua.

[Temp20230526CM]

https://www.youtube.com/watch?v=6GvTKLpWzA8 pay pal direct deposits please watch this video will answer all your questions

[OzAqua]

Thank you, that was very helpful, much appreciated.

[grumpydave]

I have recently been transitioned to eBay managed payments and it is a nightmare for a variety of reasons but chiefly in loosing vital access to PayPal working capital.

The video you link to suggests using using PayPal direct deposits to direct income from eBay to your PayPal account instead of your bank account (as is the new norm under ebay managed payments). With your income to PayPal restored the idea is that you can continue to apply for PayPal working capital loans and pay them back at a set percentage as under the old regime. Unfortunately as I see it this is currently impossible. To use PayPal direct payments you need to apply for a PayPal cash debit card, this is only available for PayPal personal accounts and not PayPal business accounts. PayPal working capital loans are only available to PayPal business account holders....

The importance PayPal working capital loans have been to my business is even more obvious to me now that they are gone!

[OzAqua]

I would not hold your breathe for PayPal to roll out that virtual bank option. I don't see that PayPal has much incentive to provide business loans to ebay sellers anymore, it really only benefits ebay if they do. Whereas before they had the incentive of helping us build up our ebay businesses because it helped PayPal process more transactions and make more money from fees. The small interest fee that PayPal charged us for our loan was not about making profit, it would have just covered PayPals expenses. And if they were serious about providing a solution it would have been done and available to us by now.

My advice to you is, if you are lucky enough to be offered another round of funding, DO NOT pay it off quickly, there is no benefit as it will likely be the last time you are offered a loan if you are an ebay only seller. Pay if off at the absolute 90 day minimum and put the money that you would usually have used to pay the loan down quickly into savings. This way when you pay out your (more than Likely) LAST PayPal loan you will have that money you have saved to use instead of needing a PayPal business loan.

The way I see it, PayPal has totally taken away any incentive we have to pay out our loans quickly and has shown that they were not providing loans to us for any other reason than to line their own pockets. For this reason we have now moved to stripe for our website payment processing.  

Good Luck Everybody.