Using Paypal/Bank for eBay postage labels
Summary: arcadehouse raised a concern about a notification regarding the removal of PayPal as a payment option for Royal Mail labels on eBay, questioning if this applied to all sellers. sml192 confirmed it applies to all sellers, stating payments will now need to be made using available eBay funds or a linked bank account. arcadehouse shared the official announcement and expressed concerns over increased administrative tasks or losing seller protection if not using eBay labels. Both participants found humor in the announcement's response to frequently asked questions.
Hi All,
As I was going to do the days postage labels i noticed the attached notification.
Wondering if anyone else had had the same, or whether I have seen it in error? (Business Seller)
If it is true I don't recall any announcement etc, is there any further infomation available? I.e is it only for private sellers, is any other banking option available etc etc
As we use the paypal option due to being linked to our bank, which in turn is linked to our accounting software, it would either be causing unnecessary admin,
or failing that a revert back to using Royal Mail direct which is fine, but would the newly brought in policy of INR's that then arrive after, being refunded to seller (only whilst using eBay labels though) not be honored any further?
So effectively we either have to decide between more admin or giving up our seller protection?
sml192
·Sep 6, 2026 at 8:13 PMIt applies to all sellers (Business as well as Private) purchasing Royal Mail labels on eBay. You aren't seeing it in error.
If there isn't sufficient funds in your eBay balance then the remainder will be charged to your linked bank account/funding source.
arcadehouse
OP3 weeks agoYeah thank you!
Just seen there is now an official announcement, although very vague. I read it as basically no alternate option, and would be wishful thinking they would honor the seller protection if not using eBay labels.
Have to chuckle at the 1st FAO
(I'll copy the announcement here incase anyone else can't see it/missed it)
PayPal removed as a payment option for Royal Mail labels
From 7 September 2026, you will no longer be able to pay for Royal Mail labels using a PayPal account.
If you buy Royal Mail labels on eBay, you’ll need to use your available eBay funds instead. If you use Simple Delivery, there’s nothing you need to do.
What’s changing
From 7 September 2026, PayPal will be removed as a payment option for Royal Mail labels on eBay.
This means that when you buy a Royal Mail label, you’ll need to pay using your available eBay funds.
If you don’t have enough available funds, you’ll need to add a payment method to your wallet before buying your label.
What you need to do
Use your available eBay funds when buying Royal Mail labels
Add a payment method to your wallet if you don’t have enough available funds
No action is required if you use Simple Delivery
Frequently asked questions
Why can’t I use PayPal to pay for my labels?
If you don’t see PayPal as an option when buying shipping labels, it is no longer available as a payment option on your account. You’ll need to use your available eBay funds instead.
What happens if I don’t have enough available funds?
You’ll need to add a payment method to your wallet before buying your label.
Do I need to do anything if I use Simple Delivery?
No. If you use Simple Delivery, there’s nothing you need to do.
Thank you for selling on eBay.
sml192
·3 weeks agoYeah, that made me smile aswell. They haven't exactly answered the question there!
arcadehouse
OP3 weeks agoSomething else for everyone to take into consideration, if reverting back to use Royal Mail Click and Drop for example the 30p collection charge may be applied again.