you dont need any approval to use a merchants account with ebay, simply pick and choose which payment processor you use, Payflow works with no problem so does the other option, its Authorize.net that is having an issue.
Here are some attachments straight from ebay regarding merchant accounts:
If you would like to accept credit cards in eBay checkout, you'll need to have an Internet merchant account, and an account at one of checkout's supported payment gateways.
Note: Before opening a new Internet merchant account to accept credit cards through eBay checkout, take a look at all payment options. Unless you sell at high volume, the transaction fees charged by your merchant bank may be higher than what you'd pay for the other online payment methods.
If you want to be able to accept credit card payments from buyers through eBay checkout, you'll need to have both an Internet merchant account and a payment gateway account.
A payment gateway is a service that sends credit card transactions to the credit card payment networks for processing. When you accept credit cards through eBay checkout, eBay checkout will submit your transaction to your selected payment gateway for routing to the credit card payment networks.
Here's a step-by-step example of how it works:
A buyer purchases an eBay item and enters a credit card number in eBay checkout.
Details about the purchase are sent by eBay checkout to the payment gateway for processing.
The payment gateway forwards transaction information to seller's bank.
The seller's bank forwards transaction information to the bank that issued the buyer's credit card to authorize the transaction.
The bank that issued the buyer's credit card either approves or denies the transaction and sends that information back to the seller's bank.
If the transaction is approved, the bank will deposit funds on a merchant's account at a scheduled time.
The payment gateway sends transaction details and response back to eBay.
eBay lets the buyer know if the transaction was approved or denied
Setting up a payment gateway for your Internet merchant account
If you already accept credit and debit cards through an Internet merchant account, you can use checkout to accept these types of payments once you provide us with your payment gateway account information.
To set up your payment gateway on eBay checkout:
Click My eBay at the top of most eBay pages. You may need to sign in.
Place your pointer over the Account tab, and then click Site Preferences.
In the Selling Preferences section, click the Show link next to Payment from buyers.
Click the Edit link.
On the Payment Preferences page, select Accept credit or debit card payments to your Internet merchant account.
Next, you'll need to enter your payment gateway information.
Note: If you need help finding any of this information, please contact your payment gateway provider.
To enter your payment gateway information:
Choose your payment gateway provider from the drop-down menu at the top of the page.
Enter your Merchant login (sometimes called "gateway login" or "API login ID"). This is the ID that identifies your account at the gateway for transaction processing.
Note: This ID is usually different from the user ID you use to log into your gateway's website.
Enter your Password (sometimes called the "password" or "transaction key").
Note: Usually, this is a password that was generated by the payment gateway for you, not a password that you created.
Depending on the payment gateway you use, you may need to enter a Vendor ID or User ID.
Depending on the payment gateway you use, you may need to enter a Partner ID.
Select the credit cards you'll accept through this payment gateway.
Select your merchant preferences, such as whether you'll require buyer's credit cards to pass Address Verification (AVS) and Card Security Code (CSX/CVV) checks.
Enter the credit card information for a credit card you accept and that's accepted by your gateway. Note: Your credit card won't be charged. We use this information to test that everything works correctly.
Review your information and confirm it is correct.
Click the Submit button.
Once you have your payment gateway account information setup with checkout and enabled in your preferences, buyers have the option of paying you online by credit card.
The fine print
Existing Payflow payment gateway accounts can't be used for eBay transactions. To accept credit or debit card payments on eBay, you need to set up an additional Payflow account for eBay sales.
The Payflow gateway service is free for eBay sellers, although your usual merchant credit card transaction fees still apply.
When your Payflow payment gateway account is set up, your payment preferences show up in any new listings you create, but not in any of your existing listings or listing templates. You can update this information by revising your listings.
Payflow is governed by PayPal's user agreement and privacy policies, but isn't linked with your PayPal account. You don't need to have a PayPal account to use Payflow on eBay.
Merchant credit card
How does it work? Sellers can accept credit card payments to their Internet merchant account directly through eBay checkout by providing their payment gateway account information. This is a free service for eBay sellers. Buyers pay immediately using the Pay Now button. Payments are securely and instantly processed online from eBay checkout through your payment gateway. Sellers receive an email telling them they've been paid and they know they can ship the item.
Do I need to register? Yes, you need an Internet merchant account with your bank or credit card processing company, and you need a payment gateway account.
Do I pay a fee? eBay checkout does not charge any fees. However, your bank or merchant credit card processor and payment gateway provider may charge you per-transaction fee or other fees, and a percentage of the total amount charged by the buyer.
Depending on your credit card processing agreement and your monthly transaction volume, Internet merchant account fees may be higher than fees for PayPal, ProPay, Moneybookers, and Paymate. If you don't have an Internet merchant credit card account already, take a look at your options before signing up for this service. If you haven't needed a merchant account up to now, you'll probably pay less per transaction by using one of the other payment options.
Does the buyer have to register? No, buyers can use their credit card as they would at any online or offline store.
Does the buyer pay a fee? No.
How soon am I paid? Your merchant account is credited immediately after the buyer's card information is received and processed.
Is there seller protection? Yes. eBay Buyer Protection protects sellers when tracking information shows an item has been delivered, or sellers show an item was properly described. Learn more about what eBay Buyer Protection means to sellers.
Is there buyer protection? Yes, eBay Buyer Protection covers the purchase price plus original shipping if the buyer doesn't receive the item or the item doesn't match the seller's description. Also, buyers may have protection through their credit card company.
Does this method require eBay checkout? Yes.
Is there help if I have a transaction problem? Yes, through the eBay Resolution Center. Learn more about what to do when a buyer doesn't pay.
Payment upon pickup
How does it work? Your buyer pays you when they pick up the item.
Do I need to register? No.
Do I pay a fee? No.
Does the buyer have to register? No.
Does the buyer pay a fee? No.
How soon am I paid? Immediately. In-person payment methods can include checks, money orders, cash, PayPal, or credit card. In your listing, be clear about which of these payment methods you'll accept.
Most sellers don't accept checks or money orders, because if they don't clear after the buyer has picked up the item, the seller has fewer options for resolving the problem. See our accepted payments policy.
Is there seller protection? Yes. eBay Buyer Protection protects sellers when they show an item was properly described and the item was purchased with an eligible payment method. Learn more about what eBay Buyer Protection means to sellers.
Is there buyer protection? Yes. eBay Buyer Protection covers the purchase price plus original shipping if the item doesn't match the seller's description. Buyers need to pay with an eligible payment method. Cash, checks, and money orders are not covered by eBay Buyer Protection.
Does this method require eBay checkout? No.
Is there help if I have a transaction problem? Yes, through the eBay Resolution Center. Learn more about what to do when a buyer doesn't pay.
Blah blah blah...... you get the point. Back in the day you needed to fax your merchants account info and a statement that was after 11/07.
For more info google Authorize.net ebay checkout under news search.
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still coming up with an error, I was told by authorize.net its on ebays end and should be fixed soon.
going nowhere fast!!
It should be fixed eventually as they are offering it. 
