Ebay
eBay works with certain payment gateways including Authorize.net, CyberSource, and Payflow to ensure vendors can accept credit cards without having to use PayPal. We recommend our partner Authorize.net because of its built-in security measures, longstanding reputation, and feasibility for small and medium-sized businesses. To integrate your Authorize.net payment gateway with eBay Checkout, you require:
- Your ecommerce merchant account information
- Your business contact information
- Which credit card brands you'll accept through the gateway
- A valid credit card for the test transaction
You can begin the process by visiting seller preferences on My eBay.
eBay doesn't charge you for accepting credit and debit cards. The integration of the payment platform and gateway facilitates secure online payments between eBay and your bank. It's perfect for businesses without their own websites who regularly sell on eBay—or those that already have a merchant account and website and want to branch into the thriving eBay marketplace.
Why Invest in an eBay Merchant Account?
The ability to accept major brand credit cards like Visa, Mastercard, and Discover lends credibility and professionalism to your image as a seller. Trust in those brands will extend to your business and the products you're selling. Online buyers are already cautious, especially when purchasing items that are used or "like new," so any added perception of legitimacy will increase your conversion rate of shoppers into buyers. With the real-time authorization of credit card processing, you can also process and ship orders faster, resulting in more satisfied customers.
PayPal is the most common payment method on eBay. It's convenient if you're only processing a few transactions a year, but if your volume is consistent, having a merchant account is a more cost-effective and business-focused solution. PayPal, known as a "modern payment gateway," charges higher transaction fees, and the waiting period for payment funds to be deposited into your account is longer than with a "traditional payment gateway" like Authorize.net. The more you process, the less financial sense modern payment gateways make for your business.
When you opt for an Authorize.net payment gateway, you can take advantage of benefits like lower rates, next-day funding, fraud prevention tools, and the ability to process for both eBay and your own website (or you have the room for expansion if you don't have a website). Because the transaction fees are lower, you quickly make up for the expense of setting up a credit card merchant account. Customers are able to initiate chargebacks for credit card purchases whether you use PayPal or Authorize.net. But the outcome differs depending on your payment platform.
If you experience chargebacks with a PayPal account, PayPal freezes your account at their discretion. You won't be able to access funds, issue refunds, and depending on the chargeback amounts, you may not be able to reopen it. And, if PayPal finds your content objectionable, even if it's legal, your account is also subject to closure without warning.
In contrast, a merchant account dedicated to your specific business is designed to help you manage chargebacks. Rather than hold your account when you get charged back more than once, merchant service providers assist you through the process of trying to win the dispute initiated by the customer and reverse the claim. Website Payment Pro USA has an in-house chargeback team dedicated to helping you reduce your risk and handle the inevitable cases.
The PayPal-eBay Break Up
eBay and PayPal have a long history together. eBay acquired PayPal in 2002 and helped fuel its growth. But in 2015, the two companies split, although PayPal remained the most popular payment method for eBay shoppers. In February 2018, eBay announced that the partnership will end in 2020, as eBay is dropping PayPal as its main payment processor and moving forward to take even more of a direct hand in its payments via the Dutch company Adyen. By July 2023, eBay will not even offer PayPal as a payment option for buyers. Opting for a credit card merchant account will help future-proof your business in anticipation of the change. With an eBay merchant account from Website Payment Pro USA, you also get to customize features to take more direct control over your payments:
Advanced Fraud Detection Suite (AFDS) that allows you to set custom filters and thresholds to identify and stop suspicious transactions. For example, the AFDS's hourly velocity filter lets you limit the number of transactions your payment gateway allows in an hour, which is great for preventing rapid, high-volume fraud attempts that are typical for credit card thieves who use stolen card information immediately before the cardholder realizes it's being used and disables the card. Your payment gateway generates monthly online reports that show you sales trends at a glance and provide actionable insights. Next-day funding. No more waiting on check or money order payments. No more problematic account holds from PayPal. Transaction funds are deposited into your bank account by the next business day. If your business is seasonal, we can hold your merchant account for up to six months and reopen it, hassle-free. Low rate guarantee—we will beat the rate of any verified provider.
High-Risk Factors
eBay merchant accounts are considered high-risk ventures for banks and merchant providers because they can be financially unstable and are prone to chargebacks. If the merchant can't afford to pay for chargebacks and fraud losses, the merchant provider is next in line to reimburse the losses to banks and credit card issuers. Businesses that operate online are inherently at a higher risk for chargebacks than brick-and-mortar retail stores because fraud and buyer's remorse are more common. Especially when it comes to used goods on eBay, items can look different in person than presented online, prompting more transaction disputes. Fortunately, safeguards put in place by eBay mitigate risks. It offers a money back guarantee if a buyer receives a broken or damaged item, an item that doesn't match its listing, or if the buyer doesn't receive the item.
Streamline your eBay business with a secure merchant account from Website Payment Pro. Contact us today at 1-800-304-0555 to learn more about our tailored eBay payment processing solutions.
