eBay & Paypal - Policies and Practices

[allasorte]

If true, it's just one more way for the IRS to track "income".


BTW, I'd be very slow to provide my SSN to someone claiming to be from ebay.

Trust me, it is weighing on my mind as to why ebay is wanting this information. I have gotten several emails from ebay, and these emails are in my messages on my account. I believe this to be real, I am hesitant as to why ebay wants to take PayPal out of the equation. I believe ebay owns PayPal.

[Randall Flagg]

What if any measures does ebay say they will implement if you don't provide the information?

[darkseer]

If true, it's just one more way for the IRS to track "income".


BTW, I'd be very slow to provide my SSN to someone claiming to be from ebay.

Trust me, it is weighing on my mind as to why ebay is wanting this information. I have gotten several emails from ebay, and these emails are in my messages on my account. I believe this to be real, I am hesitant as to why ebay wants to take PayPal out of the equation. I believe ebay owns PayPal.

I never got any messages like that. I use paypal with no trouble on ebay.

[Br!an]

I believe ebay owns PayPal.

It was announced on September 30, 2014, that eBay would spin off PayPal into a separate publicly traded company, a move demanded in 2013 by activist hedge fund magnate Carl Icahn. The spin-off was completed on July 18, 2015.[45][46][47] Dan Schulman is the current president and CEO, with former eBay CEO John Donahoe serving as chairman.[44] On January 31, 2018, eBay announced that "After the existing eBay-PayPal agreement ends in 2020, PayPal will remain a payment option for shoppers on eBay, but it won't be prominently featured ahead of debit and credit card options as it is today. PayPal will cease to process card payments for eBay at that time." The company will "instead begin working with Amsterdam-based Adyen"

[Merlin1958]

Man, IDK if it were me then it would be too bad but that would end my dealings on ebay. You just can't trust this shit online now a days. Maybe if through the mail. Out of curiousity what kind of transactions are in play here? I mean if you are solely a buyer I don't see any reason for the SSN to be involved. Even as a seller, by having your CC on file they can validate your ID for tax purposes. FWIW this is a first in my experience and I haven't seen any news or what not. I buy quite a bit on ebay and have never been asked for that info. I do not sell though.

[GenericEric]

As stated above, since they're separate now, it was only a matter of time before ebay delivered their payouts directly instead of through paypal.

ebay gets a bigger slice of the pie this way. They say sellers will save more doing it this way, but in the end I doubt it. I'm sure they'll just tack on more fees anyway.

[herbertwest]

Anyone get emails from ebay about their new payment policies? Why do you need to add your social security number for this? Doesn't this seem a tad excessive to giving out information just to sell something?

Yup - they are saying its due to a change in the way payments will be made. Instead of going through paypal funds go directly to your bank.

Why don't you contact ebay directly to ask whether it's a true request or not?
Otherwise, as Jerome as said, the only reason I can think of is tax related
I am guessing you may have sold a LOT on ebay, and that triggered something at ebay?

[RC65]

It's true. Under the new managed payments program, eBay is the legally responsible reporting party for the IRS via the 1099-K form. The threshold for 1099-K form is $20,000 via 200 transactions, but even though a seller may sell much less than that (as I have...just $600 this year), the potential exists in their mind...so because they don't want to chase a seller down after the fact, eBay requires the SSN now. I spent one hour and fifteen minutes being transferred around and discussing the issue with eBay's "customer service" (and I use those quotes intentionally) reps a week ago, and the answer is definitive: if you wish to sell on eBay and have been alerted to this requirement, you must provide your SSN to continue selling.

[Hunchback Jack]

Yeah, I'm not happy about this at all. I don't sell much on eBay, and would be fine providing them the same info I provided Paypal to enable payments. But I do not want to give them my SSN.

Not sure what I'm going to do ... find other marketplaces, I guess.

HBJ

[tippy4]

Finally signed up for Managed Payments on bay....because I was forced to.

So now, selling books on ebay costs me 14.35% of the total sale....and that total sale includes shipping and sales tax...even if ebay collects that tax on your behalf. Plus 30 cents.

Sold a book today for $129.00....shipping was $7.01....ebay collected $8.06 tax from the buyer. Buyer paid $144.07 total.

Ebay hit me for $20.97 fee (14.35% of $144.07 plus $0.30) on a $129 sale.....16.25%.

Fuckers!

[GenericEric]

That's exactly why I try to sell higher priced books off of ebay and on the facebook collectors groups.

Or lately I would come to an agreement with the buyer on ebay to do the sale off of ebay and just through PayPal instead. I did that recently with The Exorcist, The Silence of the Lambs, and CD's gift edition of IT.

Saved me hundreds of dollars. Ebay's fees are getting ridiculous.

[Cook]

Finally signed up for Managed Payments on bay....because I was forced to.

So now, selling books on ebay costs me 14.35% of the total sale....and that total sale includes shipping and sales tax...even if ebay collects that tax on your behalf. Plus 30 cents.

Sold a book today for $129.00....shipping was $7.01....ebay collected $8.06 tax from the buyer. Buyer paid $144.07 total.

Ebay hit me for $20.97 fee (14.35% of $144.07 plus $0.30) on a $129 sale.....16.25%.

Fuckers!

So what does eBay's "Managed Payments" do for you?
Thanks

[tippy4]

NOTHING

They have just taken Paypal put of the equation and raised their prices.

And to add insult to injury......in "the old days"....when I sold something and someone paid.......I could use that money immediately to buy something. Now....it sits in ebays hands for 1 to 3 days....then takes another 1-3 days to be deposited into my bank. So I cannot use that money for 2-6 days.

With one exception....I can use that money to pay for shipping labels.

[Fsmdr]

Finally signed up for Managed Payments on bay....because I was forced to.

So now, selling books on ebay costs me 14.35% of the total sale....and that total sale includes shipping and sales tax...even if ebay collects that tax on your behalf. Plus 30 cents.

Sold a book today for $129.00....shipping was $7.01....ebay collected $8.06 tax from the buyer. Buyer paid $144.07 total.

Ebay hit me for $20.97 fee (14.35% of $144.07 plus $0.30) on a $129 sale.....16.25%.

Fuckers!

and that's before PayPal fees!

[Cook]

Finally signed up for Managed Payments on bay....because I was forced to.

So now, selling books on ebay costs me 14.35% of the total sale....and that total sale includes shipping and sales tax...even if ebay collects that tax on your behalf. Plus 30 cents.

Sold a book today for $129.00....shipping was $7.01....ebay collected $8.06 tax from the buyer. Buyer paid $144.07 total.

Ebay hit me for $20.97 fee (14.35% of $144.07 plus $0.30) on a $129 sale.....16.25%.

Fuckers!

and that's before PayPal fees!

Generally, how much are paypal selling fees?

[tippy4]

Finally signed up for Managed Payments on bay....because I was forced to.

So now, selling books on ebay costs me 14.35% of the total sale....and that total sale includes shipping and sales tax...even if ebay collects that tax on your behalf. Plus 30 cents.

Sold a book today for $129.00....shipping was $7.01....ebay collected $8.06 tax from the buyer. Buyer paid $144.07 total.

Ebay hit me for $20.97 fee (14.35% of $144.07 plus $0.30) on a $129 sale.....16.25%.

Fuckers!

and that's before PayPal fees!

There are no Paypal fees on ebay transactions now.

[tippy4]

Finally signed up for Managed Payments on bay....because I was forced to.

So now, selling books on ebay costs me 14.35% of the total sale....and that total sale includes shipping and sales tax...even if ebay collects that tax on your behalf. Plus 30 cents.

Sold a book today for $129.00....shipping was $7.01....ebay collected $8.06 tax from the buyer. Buyer paid $144.07 total.

Ebay hit me for $20.97 fee (14.35% of $144.07 plus $0.30) on a $129 sale.....16.25%.

Fuckers!

and that's before PayPal fees!

Generally, how much are paypal selling fees?

Paypal fees are usually 2.9% plus 30 cents......but Paypal is no longer part of the ebay equation.

[Cook]

Finally signed up for Managed Payments on bay....because I was forced to.

So now, selling books on ebay costs me 14.35% of the total sale....and that total sale includes shipping and sales tax...even if ebay collects that tax on your behalf. Plus 30 cents.

Sold a book today for $129.00....shipping was $7.01....ebay collected $8.06 tax from the buyer. Buyer paid $144.07 total.

Ebay hit me for $20.97 fee (14.35% of $144.07 plus $0.30) on a $129 sale.....16.25%.

Fuckers!

and that's before PayPal fees!

Generally, how much are paypal selling fees?

Paypal fees are usually 2.9% plus 30 cents......but Paypal is no longer part of the ebay equation.

Thank you both for the help.. good to know.

[tippy4]

Finally signed up for Managed Payments on bay....because I was forced to.

So now, selling books on ebay costs me 14.35% of the total sale....and that total sale includes shipping and sales tax...even if ebay collects that tax on your behalf. Plus 30 cents.

Sold a book today for $129.00....shipping was $7.01....ebay collected $8.06 tax from the buyer. Buyer paid $144.07 total.

Ebay hit me for $20.97 fee (14.35% of $144.07 plus $0.30) on a $129 sale.....16.25%.

Fuckers!

and that's before PayPal fees!

Generally, how much are paypal selling fees?

Paypal fees are usually 2.9% plus 30 cents......but Paypal is no longer part of the ebay equation.

Thank you both for the help.. good to know.

Let me clarify....buyers can pay with Paypal.....but as far as sellers go.....there is no Paypal in the equation for them now.

The buyer's money goes from Paypal, to ebay, to the seller.

[averagegatsby]

That's exactly why I try to sell higher priced books off of ebay and on the facebook collectors groups.

Or lately I would come to an agreement with the buyer on ebay to do the sale off of ebay and just through PayPal instead. I did that recently with The Exorcist, The Silence of the Lambs, and CD's gift edition of IT.

Saved me hundreds of dollars. Ebay's fees are getting ridiculous.

Provided it's not against the rules of this forum, are you able to share the facebook collectors groups?

[webstar1000]

Hey I sold something on eBay. It was $1350 shipped but eBay only
Took $53 on the PayPal invoice. I know before I’d get an invoice later at the end of the month.... but I hear that’s changed? It seems like a small amount. Anyone help me here?

[JeremyM]

Sounds like your account hasn't been moved to the managed payments scheme yet.

As you noted, that's just the payment processing fee - expect to get an invoice for the final value fee at the end of the month, which is 12% on books, so another $162.

[Br!an]

That's almost 16% in fees. Doesn't seem totally out of line to me with 15% being fairly standard. Still a little high.

[herbertwest]

I've read that Paypal is taking off fees for their offer of credit, paying in 4 times

[DoctorZaius]

any advice on handling 1099-K for ebay sales?