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Blazing Lazers

Ebay "you will no longer receive payments to your PayPal account"???

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2 hours ago, taxman said:

If you purchase shipping USPS shipping through ebay, that is the one thing they are willing to deduct from your pending funds.

Well, I guess that is something.

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Is that even a thing to pop up on there yet?  I refuse to use it unless that IS their shitty little way to excuse them brokering their own funds to scrape more off the top.

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I am selling an old ipad air 2013 right now.  So what happens if it sells?  I have to setup an ayda account?  Or just tell them to use my paypal address and keep using it?

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2 hours ago, 0078265317 said:

I am selling an old ipad air 2013 right now.  So what happens if it sells?  I have to setup an ayda account?  Or just tell them to use my paypal address and keep using it?

Well if your account has been already converted you basically are stuck using them as a delayed payment processor to transfer to a bank account you supply or you walk away.  They're fine using PP to pay, just not to receive money as they want those fees and control to appease buyers even more than they already do.  Best bet if you choose to continue, make a detached online only bank account that's FDIC backed and never ever give them any access to your real bank your paycheck goes into, ever.  They're sleazy about taking advantage of sellers and at times taking your money and your product away to keep the buyer pleased whether you did something wrong or not.

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3 hours ago, Tanooki said:

Well if your account has been already converted you basically are stuck using them as a delayed payment processor to transfer to a bank account you supply or you walk away.  They're fine using PP to pay, just not to receive money as they want those fees and control to appease buyers even more than they already do.  Best bet if you choose to continue, make a detached online only bank account that's FDIC backed and never ever give them any access to your real bank your paycheck goes into, ever.  They're sleazy about taking advantage of sellers and at times taking your money and your product away to keep the buyer pleased whether you did something wrong or not.

How do I know if the account has been converted?

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Because if you try and get paid into a paypal account you'll get blocked, though before they do warn you with a message that it's coming I'm told.

I've been with ebay so long I signed up months before they stopped using the old name AuctionWeb when it was just something that served California at the time basically.  Maybe I'll be the last to get screwed or it's the luck of the draw, I have no idea.

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17 minutes ago, Tanooki said:

Because if you try and get paid into a paypal account you'll get blocked, though before they do warn you with a message that it's coming I'm told.

I've been with ebay so long I signed up months before they stopped using the old name AuctionWeb when it was just something that served California at the time basically.  Maybe I'll be the last to get screwed or it's the luck of the draw, I have no idea.

I have been on ebay since 2002.

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I'm trying to wrap my head around these changes.  Maybe someone who sells on eBay regularly can enlighten me?

 

I sell an item on eBay and buyer pays by PayPal.

eBay has my banking info and takes their cut before they deposit the money into my bank.

So far that makes sense, but where do PayPal's fees come into play?  Do they take their cut from the buyer's payment before paying eBay?

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The normal way for like forever with them was that as a seller, someone would buy and pay over paypal.  The item sells for X price.  Paypal takes their small cut (2.9%+30cents~) and at the same time ebay takes their FVF crook fees on the 10% not just what you got for it, but also on the money that is supposed to be used to ship your item too.  Once they both take their slice, you get the remaining (around 85%) of whatever it sold for.

 

The new way, they booted PP for payments when/if that hits you.  Ebay then takes your money directly, then locks it down for some amount of asinine time for some reason, then eventually releases it, but NOT to paypal (they refuse) they require a bank account to have access to for both payment or taking money from you if there's any issues.  They also raised their rate a few percent too since PP is out of the picture, they feel entitled to it.

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7 minutes ago, Tanooki said:

Ebay then takes your money directly, then locks it down for some amount of asinine time for some reason

That reason being is they can earn interest on the enormous amount of money they can hold from sellers for a few days. Etsy does the same thing. Purely a cash grab. 

7 minutes ago, Tanooki said:

They also raised their rate a few percent too since PP is out of the picture, they feel entitled to it.

It actually works out to slightly less in fees than previously. But it does suck for people who need that money RIGHT NOW and have to wait. 
 

  ..Al

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Posted (edited)
10 hours ago, Albert said:

That reason being is they can earn interest on the enormous amount of money they can hold from sellers for a few days. Etsy does the same thing. Purely a cash grab.

Yes, they are earning money on the "float", the time between when they receive cash and when they pay it out. It's a fairly common practice. Sales on eBay were about $100B last year. If they were able to hold that money for an extra 5 days, even at historically low interest rates, it would generate an additional $7 million of free income (assuming a low cash-like yield of about 50 basis points - they can likely do better). If/when rates increase, it will be far more valuable and gives them a short-term source of liquidity if needed.

Edited by cvga
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Does it now?  I know it's a greedy cash grab, but I was seeing stuff that said if you're doing lower value items (under 100) you end up eating a bit more of a loss, even if it's marginal.  If you move enough volume you could come out on top a little too, but I'd think most people here aren't running a 24/7 business through that site to notice.

 

I'm mostly just pissed whenever try to force my hand I'll have to setup another bank account, one of those online ones, I refuse to let those dishonest crooks have direct access to my same account paychecks get dumped into as that's just waiting for abuse by their heavy handed one sided behaviors.  As it stands for years now, I grandfathered in never giving them bank access, and I let the credit card expire back in 2015 on the account.  If I cut them off from Paypal they'd be SOL on their current setup.  It's the only safety net I have from scamming and they're removing it.  If facebook wasn't such a chore to setup for national sales I'd go with that.

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On 3/16/2021 at 12:12 AM, Albert said:

That reason being is they can earn interest on the enormous amount of money they can hold from sellers for a few days. Etsy does the same thing. Purely a cash grab. 

It actually works out to slightly less in fees than previously. But it does suck for people who need that money RIGHT NOW and have to wait. 
 

  ..Al

eBay makes it very difficult to find exactly how their fees are being charged. Here is a recent example, $100 sale, $6 shipping. Their fees should be:

 

0.30 final value flat fee

13.09 = Final value fee, standard variable: 12.35% x $106 (FV with shipping)

 

There actual fee was 0.30 + $13.91

 

What is "hidden" is that they also charge you a processing fee on the taxes they collect. That comes to an extra 0.85 in the FVF

 

12.35% x $112.63 = $13.91

 

So the buyer's state tax must have been about $6.63. eBay charges me $0.85 to collect state sales tax on this auction. In total, eBay collected $14.21 in fees for the $100 item. 

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9 hours ago, CincYnoTi said:

eBay makes it very difficult to find exactly how their fees are being charged. Here is a recent example, $100 sale, $6 shipping. Their fees should be:

 

0.30 final value flat fee

13.09 = Final value fee, standard variable: 12.35% x $106 (FV with shipping)

 

There actual fee was 0.30 + $13.91

 

What is "hidden" is that they also charge you a processing fee on the taxes they collect. That comes to an extra 0.85 in the FVF

 

12.35% x $112.63 = $13.91

 

So the buyer's state tax must have been about $6.63. eBay charges me $0.85 to collect state sales tax on this auction. In total, eBay collected $14.21 in fees for the $100 item. 

I did not realize this. Heavy sigh....more ways to take my money away from me.

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3 minutes ago, taxman said:

I did not realize this. Heavy sigh....more ways to take my money away from me.

For video games, this isn't significantly different than before.  Video games have (had?) a 10% final value fee, so that's $10 right there on a $100 item.  PayPal charges 3-4% plus 30 cents for transactions, so at minimum on a $100 transaction you're looking at another $3.30, so you're up to $13.30 right there.  I just looked at an international transaction in the AtariAge Store and the effective rate was 4.6% (probably 4% plus the 30 cents).  So in that case, you're looking at $4.30 and you're up to $14.30 for that $100 transaction.  So these rates really aren't out of line with how much it cost previously.

 

It is total crap that they are charging a processing fee on collecting sales taxes.  I have to take a look at my eBay invoices to see what I'm actually being charged now given these changes.  It's definitely more confusing and less clear than it was in the past, which I'm sure is by design.  And I don't like how they hold your money for several days -- I'd much rather use my own payment processor instead of eBay sticking their hands into everything.  I'm kind of surprised it took them this long to make these changes.

 

 ..Al

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Posted (edited)

I feel like this article has some relevance to this thread, here is the link   https://runningwithmiles.boardingarea.com/paypal-payment-network-reporting-stimulus-bill/  
 

Here is a preview

 

 

"Buried in the new stimulus bill is a provision that will change how PayPal and other third party networks will issue tax forms to you – and the amount has dropped significantly.

If you use PayPal to receive payment for goods and/or services (like eBay transactions, Facebook marketplace, etc) or any similar platform, you will find a new change coming, courtesy of the just-passed stimulus bill.

New Reporting Requirement for PayPal and Other Platforms

Note that I am not a tax or financial professional and am not providing advice for financial or tax purposes. If you have questions about this, check with your accountant or tax professional.

What is the Reporting Requirement for Third Party Platforms?

This will apply to all third-party payment platforms but PayPal is the one that likely affects many of us the most. This will also mean for platforms like Etsy, etc."

 

--------------------------------------

 

The current IRS reporting law for these platforms is that they only had to provide a 1099-K tax form to users if they processed more than $20,000 and 200 transactions in a year. So, if you sold $40,000 worth of stuff on eBay in one year but only in 150 transactions total (as processed by PayPal), you would not receive a tax form from PayPal (except in a couple of states).

 

----------------------------------------------------------------------

 

"What Does This Mean?

So, what exactly does this mean? It means that, for returns beginning next year, third party network platforms like PayPal will be issuing forms and reporting to the IRS for all accounts if the transactions exceed $600 for that year. Fortunately, they did make the clarification that this will only apply to things that are categorized as “Goods or Services” as opposed the “Friends and Family” option with PayPal.

Why will this matter? It will likely affect a lot of people who had just listed some old stuff around their house on eBay that they were no longer using as getting over $600 will now trigger a 1099-K form. Also, it means that if use any third party payment network for anything, it will now be automatically reported if it is over $600 meaning you had better make sure you have all your receipts to show your deductions against that sale price!

This little addition to the stimulus bill will likely bring in a ton of tax money that was not being reported on before this. But, it will catch many people flatfooted if they were not aware of this and they get a tax form for clearing out old things from their house or selling an old computer to fund a new one, etc."




---  As a reminder, this is set to kick in starting January 1, 2022.  ---

Edited by MikeDijital777
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4 minutes ago, Tanooki said:

Yup those scumbags in power right now

I removed your politically-motivated post, feel free to try again without adding any unnecessary (and probably misdirected) political commentary. 

 

 ..Al

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It was not misdirected nor motivated by that, the point was a sneaky bill was shoved through harming a lot of people in the coming year due to dropping taxes on anyone selling anything over $600/yr in second hand goods was it was hid within a small sub section of a section of the stimulus bill.

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2 hours ago, Tanooki said:

It was not misdirected nor motivated by that, the point was a sneaky bill was shoved through harming a lot of people in the coming year due to dropping taxes on anyone selling anything over $600/yr in second hand goods was it was hid within a small sub section of a section of the stimulus bill.

They always are putting stuff in bills unrelated to the main purpose for years. Now if I sell over $600 and some of the items were intended for profit, but others are for junk I had laying around the house, I wonder if I can count the junk items as a loss since they would be less than what I paid for them retail.

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29 minutes ago, taxman said:

They always are putting stuff in bills unrelated to the main purpose for years. Now if I sell over $600 and some of the items were intended for profit, but others are for junk I had laying around the house, I wonder if I can count the junk items as a loss since they would be less than what I paid for them retail.

That's the real problem.  How?  I don't see how this works out because how does one prove it?  They don't expect people to keep 1-30+ years of receipts to prove they sold Super Mario Bros 3 at a loss since it was $50 in 1990 and I made $25 on it.  It'll all get reported.  Unless turbo tax has like a check box saying (on honor system...hah!) 'Did you buy this to sell, or was this an existing good you sold at a loss?') I think we just get all lumped into one and get boned.

 

I doubt that will get repealed, it's in, and I doubt they'd love to lose that abusive revenue tax on the poorer people.

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5 hours ago, taxman said:

They always are putting stuff in bills unrelated to the main purpose for years. Now if I sell over $600 and some of the items were intended for profit, but others are for junk I had laying around the house, I wonder if I can count the junk items as a loss since they would be less than what I paid for them retail.

Username checks out!:)

 

 

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4 hours ago, Tanooki said:

That's the real problem.  How?  I don't see how this works out because how does one prove it?  They don't expect people to keep 1-30+ years of receipts to prove they sold Super Mario Bros 3 at a loss since it was $50 in 1990 and I made $25 on it.  It'll all get reported.  Unless turbo tax has like a check box saying (on honor system...hah!) 'Did you buy this to sell, or was this an existing good you sold at a loss?') I think we just get all lumped into one and get boned.

 

I doubt that will get repealed, it's in, and I doubt they'd love to lose that abusive revenue tax on the poorer people.

My thoughts and concerns are the same. Suppose I were to continue trying to sell on Ebay- how do I account for the sales and how much information am I going to have to store or try to remember? Half the times I did sell something it was promptly spent on other stuff, which was I sold it in the first place. Or even worse, might such things as Capital Gains come into play? Price spikes in recent years have caused more than a few things I bought cheap years before to perform better than some of my intentional investments. 

 

From what I've been reading online from a variety of sources and Forum anecdotes, the lowered "stimulus" thresholds will be taking effect this Year, 2021, in some States, to include mine. That is, if I ever sell again on Ebay. I can easily see them losing a lot of sellers once those sellers get a rude and unexpected tax complication from all of this.

 

Similarly, how does this sort of thing affect PayPal or Venmo transfers? If somebody sends me money, or if I send someone money, has a tax situation been created? What if the money  is flowing between Countries?  I don't even want to have to think about these sorts of things, let alone actually have to account for them. 

 

And to note, I didn't find anything political or partisan about your post. This sort of policy is bad no matter who is responsible, and will equally affect buyers and sellers from all walks of life. Giving our fellow gamers and collectors a heads-up about this is a good thing!:)

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6 hours ago, Blazing Lazers said:

 

Similarly, how does this sort of thing affect PayPal or Venmo transfers? If somebody sends me money, or if I send someone money, has a tax situation been created? What if the money  is flowing between Countries?  I don't even want to have to think about these sorts of things, let alone actually have to account for them. 

 

 

I read in the article that only transfers for " goods and services " will get hit,   but transfers under " gift / friends family "  will be exempt ...   but who knows, that could change too

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7 hours ago, Blazing Lazers said:

Username checks out!:)

 

 

Haha. The name actually comes from when I used to buy tax lien certificates.

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