eBay Updates Balance Terms & Conditions For Spendable Funds
eBay is rolling out Spendable Funds to more sellers, offering the ability to use sales proceeds to shop on the platform.
Liz Morton ~ Founder
This new feature requires eBay to create Balance Accounts so that funds can be held in an onsite balance to be used for purchases and it looks like eBay updated the Balance Terms and Conditions back in August.
eBay does provide a link to the old terms as well, but as is typical, they don't provide an easy way to compare to see what was added or changed - but don't worry Value Added Resource has you covered. 😉
Here's an analysis of some of the most important changes to the terms, with the old version on the left side of the screen and the version on the right.
No Warranty of Accuracy; Disclaimer. This comparison was created using automated and manual tools. We make no warranty, and expressly disclaim all warranties, as to the accuracy or completeness of the documents, files, data, and information provided.
Excerpts provided are not meant to be an exhaustive list of all changes to the User Agreement. As always, we recommend reviewing all terms, conditions and agreements before using the eBay platform.
Eligibility
Added language to say that eBay may require photo ID to verify you account, you are not eligible if your account is suspended, restricted, or blocked, and that eBay may and random times require additional verification and may temporarily restrict access to your funds until verification is completed.
Added to new version:
To verify your identity, we may require you to provide certain identifying information to us such as your full name, address, phone number, date of birth, taxpayer identification number, bank account information, and/or a government-issued photo ID (such as driver’s license). You may not open a Stored Value Account if you do not provide required information to us, or if we cannot verify your identity using the information provided by you.
At this time, you are not eligible to open a Stored Value Account if:
Your eBay account is subject to suspension, restriction, or payout block.
From time to time, we may also require you to complete further account authentication or verification procedures to confirm the security of your device or access to your account.
We may temporarily restrict access to funds in your Stored Value Account if we cannot verify your eBay account, if you access your account from a new device, or if we suspect that your eBay account has been accessed without your authorization.
For example, as a security precaution, we may temporarily suspend use of your Spendable funds for Stored Value Purchases for up to forty-eight (48) hours following a change to your phone number.
Limits On Stored Value Purchases
Lowered monthly maximum spendable funds purchases from $10,000 to $5,000 and added 24 hr limit, added language that states eBay may choose not to display Spendable Funds option at checkout, may limit checkout attempts, and may raise or waive limits - all in their sole discretion.
Old version:
You may not spend more than $2,000 USD from your Spendable funds for any single transaction, or use your Spendable funds to fund more than $10,000 USD in Stored Value Purchases over a rolling 30-day period.
New version:
We may choose not to present Spendable funds as an accepted form of payment at checkout on eBay.com in our sole discretion. For security purposes, we may also limit the number of checkout attempts that can be made using Spendable funds during the same user session.
Your Stored Value Purchases are also subject to spending limits, such as:
- You may not spend more than $2,000 USD from your Spendable funds for any single transaction or spend more than $2,000 USD from your Spendable funds in a 24 hour period.
- You may not use your Spendable funds to fund more than $5,000 USD in Stored Value Purchases over a rolling 30-day period.
We may raise or waive the transaction or spending limits at our sole discretion. If we raise or waive your spending limits, we will notify you through the eBay Message Center and/or by email.
Unauthorized Transactions
Added language stating eBay may lock your account while they investigate claims of unauthorized transactions.
Old version:
An “Unauthorized Transaction” occurs when funds are transferred from Your Total Balance (such as transfers for Stored Value Purchases and Withdrawals) and you did not authorize such transfer and you receive no benefit from such transfer. If you become aware of an Unauthorized Transaction involving your funds, or a delay or error involving your funds, you should notify us immediately by using the Contact Us link available on our Help Hub page.
We will investigate and address all Unauthorized Transactions reported to us, in accordance with our policy.
New version (emphasis mine):
An “Unauthorized Transaction” occurs when funds are transferred from Your Total Balance (such as transfers for Stored Value Purchases and Withdrawals) and you did not authorize such transfer and you receive no benefit from such transfer. If you become aware of an Unauthorized Transaction involving your funds, or a delay or error involving your funds, you should notify us immediately by using the Contact Us link available on our Help Hub page.
We will investigate and address all Unauthorized Transactions reported to us, in accordance with our policy. We may lock your eBay account and/or disable the ability to use Spendable funds for Stored Value Purchases while we complete the investigation.
Final Thoughts
Basically the changes come down to eBay adding additional language to cover themselves on legal and compliance issues related to ID verification and fraud, and limiting their exposure by lowering limits on transactions.
In my previous article about Spendable Funds, I was concerned about the lack of details about how claims for unauthorized use would be handled.
eBay has now provided at least a little more information about the dispute process for unauthorized use - though it still remains fairly vague about how claims will be decided and if sellers will have the same level of protection they would have with a regular credit card.
If you've enabled spendable funds on your account and noticed a transaction that you didn't authorize or don't recognize, we may be able to help resolve the issue...
...Once you've checked and you're certain the purchase wasn’t made or authorized by you or anyone else with access to your account, get in touch to let us know. We’ll ask for some information about the transaction, look into it for you, and get back to you within 10 business days. If it looks like the transaction wasn't authorized, it may be eligible for reimbursement.
We know there's not always time to check every transaction in detail right away, so you can report the transaction within 60 days of the transaction date. When we're looking into it for you, we may ask for more information. If so, we'll let you know what we need and when we need it by.
For many businesses, 10 days could be an excruciatingly long time to wait if eBay locks the account completely and could do real damage to their cashflow - just something for sellers to keep in mind when weighing the pros and cons of enrolling in Spendable Funds.
Personally, given the updates to the terms and conditions here, I don't see how the risk/reward would be worth it - especially considering eBay is not offering any kind of rewards program to incentive using Spendable Funds for purchases vs simply using a credit card which may offer cash back and more protection against unauthorized use.
What do you think about eBay's Spendable Funds offering? If you're not inclined to sign up - what incentives would you like to see eBay offer to sweeten the deal?
Let us know in the comments below!
