Why did eBay stop using PayPal for sellers? (Best Answer)

Popular online market eBay has stopped using PayPal as its primary payment channel for sellers. The website had been telling its users about this change for the past few years, and finally, it happened in 2021.

PayPal is no longer the main payment channel for sellers; instead, payments will be handled by eBay’s own managed payment system. But why is this so? After all, eBay has been using PayPal ever since most of us can remember. And, for the most part, PayPal has worked fine as a payment collection method. So, what’s with the sudden change?

The Issue with PayPal

While it’s true that PayPal mostly worked without any hassles, it was hardly a perfect system. Sellers have lamented over PayPal’s strict measures when it comes to protecting the buyer. It only takes a single buyer complaint to trigger PayPal into freezing the retailer’s account. This presents an opportunity for some buyers to misuse the system and create disputes that could disrupt the business of many retailers.

What’s worse, frozen accounts can stay that way for weeks, months even, until the dispute has been settled by PayPal. So naturally, sellers wanted a change in how eBay handled buyer disputes. However, since PayPal was handling the payments all this while, eBay couldn’t poke its nose into these matters.

Now, with PayPal being removed from the seller payment channel, eBay can manage these disputes on its own. Their new managed payment system will look into the matter without creating an issue for the seller, keeping both parties happy.

Moreover, this is also a chance for eBay to improve its customer satisfaction by troubleshooting issues firsthand. In the long run, it will greatly help the company to boost its customer ratings and better understand its users. It’s about time, to be honest!

Also, having PayPal as the official payment channel meant that users only had one option to use. This could be somewhat limiting for people who want to use their own personal preferred payment channels. For example, a person living in Japan might want to use a different medium than someone who lives in Canada.

So, by removing PayPal from the equation, eBay is giving its users the chance to choose between a number of options. Soon, both buyers and sellers will be allowed to make use of a number of amazing channels that suit their needs.

How the new eBay payment works

eBay users have witnessed considerable changes in their payment systems since the company separated from PayPal. The first question on everyone’s minds was, why is eBay asking for a bank accountSome of us were suspicious even, as we’ve never had to put our banking information on eBay before.

Although this was quite suspicious for some, let us come out and say that it’s completely normal and safe. You see, back when PayPal was around, eBay would never put any money into our bank accounts. The platform would always transfer the money into our PayPal accounts instead, where we could store it or transfer it to our bank.

Now, there is no longer a need to store our money using PayPal. So, instead of going through this extra step, we can now expect our money to be deposited directly into our bank accounts.

If you make some money as a seller on eBay, it will be transferred to your account within 1 to 3 business days. Alternatively, you can pay a small fee and have it deposited into your debit card within 30 minutes or so. So, if you aren’t a seller yet, buy eBay account and get started right away.


Now that PayPal has been removed, sellers can expect a stronger and more dependable network for receiving their payments. No longer will retailers have to stand by idly as their accounts get frozen due to a minor dispute. What’s more, you won’t have to pay any processing fee to PayPal!

Obviously, eBay’s managed payment system comes as a pleasant surprise for many who have faced issues with PayPal. This brings an exciting time for existing users, as they will see many improvements in eBay’s payment systems. So, if you haven’t joined eBay yet, this would be the best time to buy eBay seller account.