Best Bank Accounts For eBay Sellers
Today’s e-commerce is so advanced and fast-paced that many traditional banks find it challenging to provide the level of services that online sellers demand. Hence, your bank may be responsible for the payment problems you are having with your eBay account. But do not worry, for you are about to learn how to turn things around. This article is your best guide to choosing an account as a seller on eBay today. Read on!
What is eBay and its Managed Payments System?
eBay is one of the oldest and most successful leaders in the e-commerce industry. It allows sellers and buyers to meet online and trade almost anything on its platform. eBay has about 187 million active users, including over 17 million sellers responsible for its more than 1.5 billion listings.
eBay Managed Payments System
eBay Managed Payments is an internal system that eBay uses to process payments buyers make to sellers on its online platform. The company replaced PayPal with this proprietary tool, seemingly following the lead of other top marketplaces like Amazon and Etsy that have created their own processing and payment services.
How does the system of eBay Managed Payments work? It follows a simple process. When a seller creates an account on eBay, he or she must have a checking account and link it to eBay Managed Payments. The system will then automatically process the customer’s payment, which will cost a fee and a commission, and send the remaining funds to the seller’s linked account instantly or within two business days.
Quick Tips for Connecting Your Bank with eBay
To get paid as a seller, you must have an active bank account and connect it with your eBay Managed Payments account. How you go about this process matters a lot. You may want to consider the following quick tips for linking your checking bank account to eBay.
Open a separate bank account for eBay sales
It is very helpful to have a separate bank account for receiving and managing payments from your customers on eBay. In that way, you can easily see your revenue and business expenses, pay taxes, calculate your profits, and balance your books.
Use a bank that eBay recognizes
It was challenging to link a variety of banks reliably when the eBay Managed Payments system originally started, but since then, things appear to have significantly improved. Nonetheless, to be on the safe side, it is better to use a reputable packaged digital bank that provides a checking account that can be opened easily.
How to Choose a Bank Account for Selling on eBay
There are a few important factors to consider when choosing a bank account for eBay. They are as follows:
- Ease of account registration
A long and stressful account registration process is not ideal for your eBay business. You need to start making money from sales as soon as possible. Therefore, it is better to go for a neobank than a traditional bank so as to (at least) get everything conveniently done online, with minimal documentation, and in a few minutes.
- Reliable support
Choose a bank that can provide 24/7 customer support. It can be in the form of a chatbot, an email address, a telephone number, or any other means of contact. You need to ensure that you can get help with fixing any issues with your bank account, transactions, or mobile app at any time.
Some checking accounts come with monthly maintenance fees. If the bank you are considering charges a low fee that you are comfortable with, this might not be a factor for you to consider. Nevertheless, in most cases, the most favourable decision is to choose a bank with zero maintenance fees, free ATM withdrawals, and many other attractive perks.
- Credit card availability
Since some credit cards come with a lot of rewards when you use them at home or abroad, you will benefit more from opening an account that comes with one of these cards. This step is very important if you spend a lot of money running your business on eBay. You can go for banks that provide credit cards with perks such as cashback, travel rewards, low-interest rates, and no credit checks.
- Transaction limits: It is also helpful to consider the transaction limits on the checking account you want to open and use for eBay. The higher the limit, the better. So, estimate the volume of transactions (such as ATM withdrawals) you want to be able to perform daily or monthly and use the information to choose a bank that will not limit your ability to do them.
Best Bank Accounts for eBay Sellers
Below is our list of the best bank accounts for eBay sellers. They provide many attractive services, which include easy checking account registration, reliable customer support, low fees, credit cards with rewards for your expenses, and high limits on your transactions.
Chime is a fintech company established to make basic banking services easy, free, and helpful. Although it is not a bank, it partners with regional banks to offer financial products that are focused on profit "with" their customers rather than "from" them. That is the reason it does not charge monthly maintenance fees, minimum balance fees, overdraft fees, or other service fees.
Open an online checking account with Chime and you will be able to enjoy free and reliable 24/7 mobile banking. E-commerce sellers can use it to send and receive money instantly from their customers on eBay and several other platforms, access over 60,000 fee-free ATMs, and enjoy many other free services. However, expect to pay small fees for services outside the Chime network. For example, its out-of-network ATM withdrawal fee is $2.5 per transaction.
Capital One is a neobank that provides solutions for your business needs. It offers a checking account (Capital One 360 Checking) that can be opened with no minimum balance and no fees. Users have 24/7 access to its mobile banking service and over 70,000 fee-free ATMs. You can use this bank for your eBay seller account to enjoy smooth and affordable online banking. Moreover, it also provides a variety of options for users to contact the support team anytime. Read our overview of Capital One to learn more about it.
bunq is the digital bank of the free. It is one of the most innovative mobile banks in the history of digital transformation in banking. Any e-commerce seller can create a Business Account with bunq to enjoy automatic budgets, easy tracking of expenses, and integrated bookkeeping, as well as get up to 25 sub-accounts with unique IBANs for easy organisation of their business finance. You can learn more about bunq by reading this overview.
Revolut is an all-in-one digital banking service for different kinds of consumers. It provides diverse services, including international payments, bank cards, budgeting and analytics, cashback, and a lot more. The company is based in the United Kingdom, but its services are available to customers in Europe, America, Asia-Pacific, and Africa. eBay sellers can open a Revolut business account to receive payments instantly from anywhere without any hassle. Read more about Revolut in this overview.
N26 is a digital bank that believes that people should be given flexible financial products and services. The company has a full German banking licence and operates in many countries in Europe. Freelancers and self-employed people can open a Smart bank account with N26 to manage their business payments. It allows many fee-free transactions in multiple currencies and provides insurance for depositors’ money. Learn more about N26 here.
One of the most common reasons why eBay rejects some bank details is because they are not checking accounts provided by reputable banks. Hence, you should ensure that your bank details are correct and that the account was opened with a legitimate and widely known bank.
You will need to use the eBay Managed Payments system to get paid on eBay. It supports a variety of credit and debit cards, as well as m-wallets like Apple Pay and Google Pay.
eBay is one of the safest e-commerce platforms. All online transactions performed on it, including those made via cards or mobile banking apps, are protected by its advanced security features. You have nothing to fear about giving your bank details to eBay so that you can get paid when a customer buys a product you have listed on it. Moreover, eBay has a money-back guarantee for users.
It is not possible to sell on eBay without providing details of your bank account, preferably a checking account. Besides, you may also be required to provide your tax number. For example, every seller based in the United States is required to provide their Social Security Number (SSN) for tax purposes.
It is very easy to transfer your money from your eBay account to your linked bank account. Select “Withdrawal” to request your available cash under the Payments page. Either type in an amount of money to withdraw or request all available funds. Under normal conditions, the money will be credited to your bank account instantly or within 0–4 business days.
Yes, selling on eBay can be considered a small retail business. Besides, in many countries, you can be subjected to federal, state, or local tax regulations.
The Bottom Line
Some traditional banks struggle to keep up with the fast-paced e-commerce environment. Instead of being patient with such banks, it is better to make the switch to a digital bank to enjoy the best of modern financial products and services.
One of the secrets to having a successful business is being able to create and sustain a smooth payment process. It will keep you and your customers happy. Your eBay business has a high chance of flourishing and expanding if you choose from the digital banks we have recommended in this article. You will be able to track your money and its growth more precisely and enjoy the benefits of simplified accounting online.