After 15 years of being in business together, eBay has announced it is cutting ties with PayPal.
Now, with eBay’s new managed payment system offering lower fees than PayPal, eBay has opted for a new partnership.
eBay will now integrate with Payoneer, the global payment and commerce-enabling platform to handle international seller’s payments.
With this shift to Payoneer, eBay says some of the expected changes are faster access to funds, more flexibility managing multi-currency payments, and expanded reach by enabling sellers to list multiple international eBay sites.
This new managed payment system will upgrade both buyer’s and seller’s experiences on eBay. Keep reading to learn all about eBay’s new managed payment system, eBay’s integration with Payoneer, and how this all affects us dropshippers.
What is Payoneer?
Founded in 2005, Payoneer is an American financial services company that provides online money transfer and digital payment services.
The financial payment service gives you the ability to directly withdraw funds with a debit card and send and receive funds domestically and internationally.
It sounds similar to PayPal, so what’s the difference?
eBay Managed Payments Partnership with Payoneer
This new partnership between eBay and Payoneer will help streamline their managed payments system to international sellers. Here are some of the benefits that this brings for eBay dropshippers;
- With Payoneer, you can have multiple virtual USD bank accounts (and plenty of other currencies)
- Payoneer has lower fees than PayPal, which means more profit for eBay sellers
- eBay will send payments directly to your Payoneer account
- Once you link your bank account to Payoneer, you can easily withdraw your funds, just like PayPal.
These are the immediate changes you will see as a seller.
Will PayPal Stay An Option?
PayPal will remain an option for buyers at checkout, along with credit, debit, gift cards, Apple Pay, Google Pay, PayPal, and PayPal Credit.
As for sellers, eBay’s officially abandoning PayPal. So, from now on, your funds will be sent to your Payoneer account with the new eBay managed payments system.
Can eBay Transfer Funds To My Bank Account Instead of Payoneer?
For anyone living in the U.S, this will be an option.
U.S based dropshippers with a remaining balance will have it automatically sent from eBay’s managed payment system to their bank account.
International sellers will need to link their eBay seller account with Payoneer to receive your payments, and this will be mandatory.
Withdrawals will be made just as quickly and easily to Payoneer as you would to PayPal, just with much lower fees.
What are Payoneer’s Fees Compared to PayPal?
One of the clear incentives in this shift from PayPal to Payoneer is our benefit from lower fees and higher profits.
On each transaction (sale), PayPal charges an average fee of 3.4%-5.4% plus $0.30 (depending on the location of both you and the buyer).
The new process with Payoneer will be a bit different. For each transaction, the funds will be stored in our eBay account, so there is no extra transaction fee that we are used to paying PayPal.
As for transfers from Payoneer to your bank account, similarly to PayPal, fees will vary based on your location.
To learn more about Payoneer transfers and fees, refer to the Payoneers fees page and get acquainted with your new payment solution.
How Do I Connect My eBay Account to Payoneer?
As we get closer to the official move, eBay will slowly start shifting everyone from PayPal to Payoneer. As this starts happening, eBay will be sending emails with steps to follow.
When the time comes, international sellers will get an invitation to merge your eBay account with Payoneer.
In the meantime, you can register to Payoneer using AutoDS’ special link and get a $25 bonus once you have transferred $1,000 to your account.
This will also waive the fee when transferring funds from PayPal to Payoneer. (0% fee!).
Once you complete registration, make sure your details on both eBay and Payoneer match. Full name, address, etc., to have everything run smoothly.
Can I Manage Multiple eBay Stores With One Payoneer Account?
If you have multiple eBay stores that are all registered under the same entity, Payoneer recommends connecting them to the same Payoneer account.
There are two ways to go about this.
As mentioned above, eBay will be sending emails with Payoneer registration links.
If you do not yet have a Payoneer account, wait for the memo from eBay and use their invite link to sign up to Payoneer.
Once you complete registration, when adding additional eBay accounts under the same entity, simply choose the option to sign in to your existing account and use your account login credentials to sign in.
If you have an existing Payoneer account, make sure the same name and details are used for your Payoneer account and eBay accounts.
They must match. Otherwise, you will need to create a new Payoneer account or edit your existing one.
Additionally, you can change your account details on eBay, but some fields cannot be changed.
First and last name to name a few, can’t be changed. Furthermore, changing your email address may require additional verification.
Now, when you receive your invite from eBay to register for their new managed payments system, select “Sign in to an existing account” and do the same for any other eBay accounts under the same entity.
If your existing Payoneer account is a “Payoneer Card Only” account, then you will need to create a new Payoneer account to use with eBay’s managed payments.
What Is the Verification Process With Payoneer?
As with any new online payments solution, you will need to complete their verification to transfer funds to and from Payoneer.
Firstly, they were to make sure your eBay and Payoneer details are the same, so make sure you verify this when at registration to avoid any unnecessary hassle.
The next step will be providing an ID document and proof of residence.
For companies, additional documentation will be required. You will be able to view this on your Payoneer account in the verification center after registration.
How Do I Transfer Funds from Payoneer to My Bank Account?
Now to the most important part of the process. Profit withdrawal! Payoneer has made this step quick and simple, just like it should be.
To transfer funds from your Payoneer account to your bank account, follow these steps:
- Click on Settings > Bank Accounts.
- Add a bank account for withdrawal, and enter your bank account information.
- Once Payoneer confirms your bank information, you can transfer funds freely from Payoneer to your bank account.
That’s it. All it takes is just a few clicks.
Conclusion
eBay’s managed payment rollout started back in 2020. Changes have been slowly creeping upon us, but this is no reason to be worried.
As used to PayPal as we are, this change has many advantages. Instead of being intimidated, keep in mind all the benefits mentioned in the article.
We are now heading into a new era on eBay. Stick around for more updates, guides, tips, and tricks that we have to share with you.
Feel free to comment below with any questions, as we are more than happy to help.
Lastly, don’t forget to use AutoDS’ special registration link to get a $25 bonus once you have transferred $1,000 to your Payoneer account – along with 0% fees for Paypal to Payoneer transfers.
