PayPal offers direct deposit for eBay and Etsy sellers

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eBay becomes a payment intermediary just like Etsy, which means that instead of paying sellers, buyers pay eBay, which then transfers the funds to the sellers’ bank accounts. However, many sellers prefer the old method of charging buyers directly so they have instant access to funds in their PayPal accounts.

PayPal offers a workaround called direct deposit, although it appears to be only available to sellers who participate in its PayPal Working Capital loan program.

Sellers still wouldn’t have instant access to funds, but they could ask eBay and Etsy to pay funds directly to their PayPal accounts if they so choose, eliminating the extra step of transferring funds from their accounts. bank accounts to their PayPal accounts.

PayPal sent a survey to sellers outlining the hypothetical direct deposit feature and stating, “Since your marketplace sales are not processed through your PayPal account, you cannot automatically repay your PayPal Working Capital business loan. This could make it harder to get approved for a loan down the line. But don’t worry, we’ve got you covered with PayPal direct deposit.

Some of the advantages of the hypothetical service described by the survey include the following:

“Quick access to your sales at no cost.

“After eBay or Etsy processes your sales, your funds will be available in your PayPal account within 1 to 2 business days. There are no transfer fees or other charges.”

The main benefit offered by PayPal is the ability to stay in compliance with PayPal Working Capital loans. A seller who received the survey explained that PayPal direct deposit is essentially a unique routing number that sellers can provide to eBay and Etsy. “PayPal would charge a fixed percentage to pay off the working capital loans,” the seller said.

The seller shared other thoughts on the proposed PayPal direct deposit offering, as outlined in the survey:

“For people who need their funds from eBay or Etsy to end up in their PayPal account, this could be a fast track to that end. Without it, your funds end up in a bank account and you then have to get them. transfer to where you need it. It may take a few business days after the transfer. And some people would probably have to open a separate bank account to have a buffer between their “real” account and the markets. With this direct deposit, funds flow through your PP account first.

“Either way, you have to wait for the market to release your funds, but instead of being in a bank account, they would be in a PayPal account and maybe offer more options and flexibility.

“This seemed like a possible solution to the issues people have been discussing lately regarding managed payments. We’ll see if that turns out to be the case.”

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About Clayton Arredondo

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