What Bank eBay Uses for Payments and Payouts

Online marketplaces like eBay facilitate countless transactions daily, requiring a robust and transparent payment infrastructure. This system directly impacts how users engage with the platform, from making purchases to receiving funds from sales.

eBay’s Managed Payments System

eBay now manages the entire payment process directly through its “Managed Payments” system. This shift means eBay acts as the merchant of record for transactions. The company partnered with Adyen, a global payment processor, to facilitate these transactions.

This integrated approach centralizes payment collection from buyers and disbursement to sellers. Under this system, eBay combines payment processing fees and sales commissions into a single selling fee. This fee involves a percentage of the total sale value, which varies by item category, along with a fixed per-order amount, such as $0.30.

Buyer Payment Process

When purchasing an item on eBay, buyers utilize a streamlined payment process integrated directly into the platform. Funds go to eBay’s payment processor. This approach simplifies the checkout experience by eliminating redirections to external websites.

Buyers have access to a wide array of payment methods to complete their purchases. These include major credit and debit cards, such as Visa, Mastercard, Discover, and American Express. Other accepted options include PayPal, Apple Pay, Google Pay, PayPal Credit, and eBay gift cards.

Seller Payout Process

Sellers on eBay receive their sales proceeds directly into a linked bank account. It is a requirement for sellers to connect a valid checking account to their eBay account to facilitate these payouts. eBay deducts all applicable selling fees and costs from the total sale amount before initiating the payout.

Sellers can select their preferred payout schedule, with options including daily, weekly, bi-weekly, or monthly disbursements. For daily payouts, funds are initiated within two business days after the buyer’s payment is confirmed. Once initiated by eBay, it takes an additional one to three business days for the funds to become available in the seller’s bank account.

Transaction Security

eBay employs multiple security measures to safeguard financial transactions for both buyers and sellers within its Managed Payments system. The platform uses data encryption to protect sensitive information. Secure server technologies, firewalls, and access controls are also implemented to prevent unauthorized access to systems and information.

eBay maintains a Level 1 Certification for Payment Card Industry Data Security Standards (PCI DSS), which signifies adherence to rigorous security protocols for handling card data. eBay also incorporates fraud prevention measures, including analyzing user behavior and payment patterns to identify suspicious activity. Payment information is kept secure, appearing as an eBay charge on bank statements.