** Please keep in mind this guide is only 1/3 complete - More information is coming in a few days. **
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Paypal Linking:
There used to be a time where you could freely use Paypal with eBay without worrying about linking occurring. All you had to do was add your eBay email address to your Paypal account and you were good to go. Not anymore!
Linking basically means that two accounts become one. Information on one account is freely shared with the other. EBay and Paypal are linking accounts without you knowing about it. You could be paying a balance, using eBay checkout or just slip up somewhere, you could unknowingly link your accounts.
How eBay and Paypal Link: - Paying eBay fees - Making a one time payment using PAYPAL will link your eBay and Paypal accounts together. Instead of doing a one time payment using Paypal, use a giftcard or send a money order. You don't have to use Paypal to pay, just click on other payment methods and pay directly with you pre-paid card; it's best not to get paypal involved at all.
- Using an old Paypal account with eBay - If you use an old Paypal account (that's been linked with a suspended eBay account), to accept funds for a new eBay account; this will link and suspend your accounts. You can no longer simply add a new email address to your Paypal account and use that for eBay. When you give eBay your Paypal email address to send money to, eBay links to Paypal.
- If you use an old Paypal account for a new eBay account (adding eBay email address to Paypal), this will link your eBay and Paypal account. Just by adding your eBay email address to Paypal does this. If you continue to use Paypal, you can not use an old Paypal account with a new eBay account. You'll need to create a new Paypal account.
- Using eBay checkout will link accounts.
Why use Paypal? Some items require a verified Paypal account in order to sale. You can create a Paypal account using certain prepaid credit cards to link to. This is only a temporary solution.
Selling international requires a Paypal account as well. You can do the same thing here; create a bogus Paypal account using a prepaid / giftcard. This doesn't mean you have to accept payments through paypal, it's only telling eBay you're verified.
Remember it's okay to link eBay and Paypal accounts as long as you've never used your Paypal account with another eBay account. But you can not reuse the same Paypal account for multiple eBay accounts without taking extra precautions. It's not recommended to use the same Paypal account for multiple eBay accounts.
If you choose to continue using Paypal: If you're working with a NEW Paypal account that has never been linked to an eBay account, you can safely link this account to eBay for international sales and other eBay features. It's recommended that you use the same name and address between your eBay and Paypal accounts. If you're using your account to accept funds, you must remember Paypal will limit your account once you reach a certain volume. You must be able to verify your account or risk being limited until you do. For certain users, all you'll need is a bank account and debit card, but for others you'll need an ID and even a Social Security number. Users are reporting success doing this.
Or if you want to continue using an old Paypal account that's been linked to suspended eBay accounts in the past, you can send invoices to your customers for "services or goods" without using auction numbers. This has shown not to link accounts. Don't count on this as a long term solution; there is a high risk of eBay and Paypal linking accounts one way or another.
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Also, as far as buyer payments - do not pay via the eBay checkout system. Get the seller's PayPal email address and then transmit a payment to him directly, not even referencing the EBAY auction except under the NOTES - mark payment for GOODS/OTHER -nothing to do with eBay.
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More with Paypal limitations: If you're going the new Paypal account route, then you'll most likely face limitations sooner or later. I do not recommend using Paypal as a long term solution for eBay. It's more of a liability then an asset. The problems you'll run into with Paypal limitations are address, and SSN verifications. Using ⊗⊗⊗⊗ information will make it almost impossible to verify your account if it reaches this point.
Another very important thing to remember is since eBay and Paypal are linking accounts much easier, it's twice as easy to be suspended. You'll have to battle being linked and keeping your eBay and Paypal accounts in good standing. If you start slacking with Paypal or eBay, you can easily be linked and shut down.
I've known since the beginning that if Paypal and eBay started linking accounts on their own; it would be much harder for everyone to continue selling. I didn't know then what I know now. There are alternatives to Paypal.
Setting up your Merchant Account: EBay won't force you to use Paypal. Their wording makes it seem like you must offer it to sale or else, but that's not the case. You have the option of either use Paypal or a merchant account.
When listing an item with eBay, on the payment options screen, below the Paypal logo, you can check "Merchant Account" and then uncheck "Paypal accepted". It's that simple, Paypal will no longer be accepted on your account. Once your auction is over, the winner will checkout and send you an email saying they want to pay with a credit card. You can use Paypal alternatives for card processing.
You may have to link to a Paypal account to use merchant account alternative.
The good thing about using a merchant account is if eBay suspends your account, you can continue using the same merchant account without a problem. Users have used
Merchant Plus for up to 5+ eBay accounts without any linking problems.
Paypal alternatives:
*** Coming Soon
eBay Employee: Quote:
Oh this is a fun one! I don't have time to look the thread over in detail as I'm running out for the day, but remember eBay and PayPal are the same company. Customers expect us to act as the same company when it comes to GS questions after all, and so what eBay as a company is trying to do now is merge the two divisions together. It doesn't really make sense if we suspend or limit someone's PayPal account and allow them to continue selling on eBay does it, or vice versa. So in the near future you'll probably be seeing more of that, where PayPal accounts are being suspended/restricted for eBay violations, and vice versa. This isn't happening for every suspension or what not, but only in ones where it makes sense (ie we suspend your eBay account for fraud, but keep your paypal account running so you can take all your money and run?!?).
It's still fairly new, but a good sign of things to come...
*edit* As for what information is actually shared between nonlinked accounts, I honestly don't know exactly. But from an employee standpoint, if I'm suspending an eBay account it's not very hard to do a search on paypal's database to find a matching account there. And I'm sure records are kept when buyers state which item numbers they're paying for on paypal's site, so it can be linked that way too. But again, this is a fairly new program being rolled out so details are still very limited.
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PayPal Linking Part 1 of 3 
