Guest article contributed by eBay seller Jackie Miller

eBay recently added a new secondary option for sellers enrolled in managed payments to pay their seller fees with a credit card.

eBay announced three years ago that they would begin intermediating payments. The process was a very slow roll out as their contract with PayPal expired and eBay worked with Adyen to hammer out the details for such a varied marketplace. A small percentage of sellers were brought into the Managed Payments program early on. These guinea pigs tested the new system and provided a lot of feedback, resulting in many positive changes before the system went live to more sellers.

Over the past year, eBay has enrolled the majority of US sellers into Managed Payments and the transition will be nearing completion by the end of this month. Throughout this time, eBay has taken in seller feedback and made more changes.

I think it's a smart move on eBay's part to make these changes gradually. Anybody that regularly sells on this platform knows that changes on eBay are often accompanied by technical glitches. Where finances are concerned, the less opportunity for errors, the better. The process of making small incremental changes has resulted in far fewer technical issues with each roll out than we've seen with other site changes.

eBay made another baby step in the Managed Payments program recently. Since last year, all fees and charges owed to eBay follow a rigid process. Primarily eBay pulls the fees from the seller's pending funds on eBay. When there aren't enough pending funds to cover the charges, eBay will then pull the balance from the seller's linked bank account.

Many sellers prefer to charge these fees to their credit card. The benefits to that are many, including but not limited to: earning credit card rewards like cash back and airline miles, not having to worry about keeping enough funds in your bank account to avoid overdraft fees, easier bookkeeping for some, and having more time to review the charges before you pay your credit card bill.

While eBay has not added the ability for a seller to charge their fees to a credit card as a primary funding source, what they have done is take a small step in the right direction. eBay will still primarily pull owed funds from a seller's pending payouts, however they recently added the ability for a seller to choose their secondary method of payment when there aren't enough pending funds to cover the charges. Sellers can still have charges sent to their linked bank account if they so choose, but they now have a new option to charge their credit card.

I first discovered this when I was issuing a refund to a buyer through a return request. There was a link on the refund page to change how fees are charged. From there, a pop-up gave me the option to change the backup charges from my linked bank account to a credit card.

Without waiting for a return, you can change your backup charge method via your account settings. Select the Payment Information settings section, and from there you can manage an existing funding source or add a new funding source. Blue light the slider next to "preferred for selling costs" on the funding source pop-up and save your changes.

While this is a small change, it is a positive one. I look forward to continued improvements with the managed payments process.

During eBay Open this year, CEO Jamie Iannone announced that eBay will be rolling out more options for selecting payout days and for using funds to make purchases on eBay before they're transferred to your checking account.

I've seen other third party seller sites make changes this year that give sellers a bonus percent if they spend their available funds on the site instead of transferring the funds to a bank. Not only do those sellers get the bonus, but they also avoid fees the venue charges for making an ACH transfer.

For any seller that shops regularly on eBay, this could be an enticing option. While we haven't heard of any such promo from eBay yet, time will tell if the marketplace decides to follow suit with these other venues and offer a similar promotion.

Thanks for sharing your thoughts Jackie! ~ Liz

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