WTF - PayPal doesn’t like chippers? (1 Viewer)

[Mortalpawn]

I think the issue here is that the IRS is requiring this year that anyone who accumulates receipts for a year totaling more than $600 now get a 1099 form from paypal which means it has to go on your tax return as income. The limit used to be $20,000. It is pretty easy to accumulate more than $600 in a year.

I'm not certain, but FF may be excluded from that total. However the IRS has been pressuring paypal (and others) to crack down so that is likely why large FF payments are generating additional scrutiny on the platform.

The new rule is not just a paypal thing - its being applied to all online payment services (Zelle, Venmo, etc...)

My guess is that this will make it increasingly difficult to do group buys and online transactions in the future as the IRS considers any money you receive as income until proven otherwise. Also as of last week we're adding another 87,000 IRS agents which will make things even more interesting in the future.

 

[toothpic]

Zelle should work right?

 

[justincarothers]

Zelle would work too.

I looked into the transaction that Paypal flagged. It was a $200 payment. The buyer put "Isle Cape Gir- $25 rack" in the comments. This is why you either leave it blank or put your username

 

[toothpic]

Going to need to make that a hard set rule for our future classified listings. No notes in the comments section at all and then reiterate that in PM.

 

[Rieguy]

Going to need to make that a hard set rule for our future classified listings. No notes in the comments section at all and then reiterate that in PM.

Definitely something worth specifying to newbies. I would know, since my first transaction here I wrote "Havana" somewhere in the subject line. Probably the fastest account-flag in history.

 

[Mortalpawn]

Let me just add that a lot of people are going to be in shock when they get their 1099 from Paypal, Venmo, Zelle, etc... in January.

It looks like its going to be up to the taxpayer to document any incoming transactions from the 1099 that they want to exclude from their income and also provide legal justification as to why the transactions should not be considered 100% income. If you made dozens or hundreds of transactions, even small ones, it is going to be quite a mess!

 

[ChrisTot]

I always put "Hookers and Blow" in the comment section and that is apparently cool with PayPal.

I sign receipts as Lil Wayne

 

[justincarothers]

From Venmo FAQ

 

[FordPickup92]

I have venmo and zelle but have not had any major incoming transactions to report any kind of issues on PayPal

 

[Tonysquander]

Paypal has made some folks input a memo when doing a FF to me but did not require them to do anything specific other than to put something there. By the way, Zelle is not impacted by the new law. The change only applies to payment networks and Zelle does not qualify as one of those because it is not an app and does not hold your money. Everyone needs to get on board the Z-Train.

 

[DontKnowWhen]

I like Zelle. But isn’t there a daily transfer limit? may make it harder to buy larger chipsets.

 

[doublebooyah85]

Going to need to make that a hard set rule for our future classified listings. No notes in the comments section at all and then reiterate that in PM.

FOR THE PEOPLE IN THE BACK. NO COMMENTS!

 

[justincarothers]

From Venmo FAQ

View attachment 968651

Paypal has made some folks input a memo when doing a FF to me but did not require them to do anything specific other than to put something there. By the way, Zelle is not impacted by the new law. The change only applies to payment networks and Zelle does not qualify as one of those because it is not an app and does not hold your money. Everyone needs to get on board the Z-Train.

According to Venmo’s website the $600 rule does not apply to payments among family and friends, only goods and services. Which I would believe would also apply to PayPal

 

[Tonysquander]

According to Venmo’s website the $600 rule does not apply to payments among family and friends, only goods and services. Which I would believe would also apply to PayPal

Correct, but that is why they are scrutinizing unusual patterns of payments using FF instead of GS

 

[justincarothers]

Correct, but that is why they are scrutinizing unusual patterns of payments using FF instead of GS

And as far as I’ve seen there is no scrutiny on venmo

 

[BGinGA]

PayPal no longer allows business accounts to receive funds via Friends/Family option -- all oncoming transaction payments automatically arrive as Goods/Services (with Paypal fee) with no option for the sender to change it. You can still send funds via FF from a business account, however.

And setting up a new account using an existing email address is a serious pita.

 

[louBdub]

FOR THE PEOPLE IN THE BACK. NO COMMENTS!

Or, flip the script!!!

Note:
“Here’s my half for dinner, you’re a good friend”

Checks the PPFF boxes and triggers an ignore from them

 

[HaRDHouSeiNC]

PayPal no longer allows business accounts to receive funds via Friends/Family option -- all oncoming transaction payments automatically arrive as Goods/Services (with Paypal fee) with no option for the sender to change it. You can still send funds via FF from a business account, however.

And setting up a new account using an existing email address is a serious pita.

Explains it
Idk why mine was created as business somehow

 

[Tonysquander]

Or, flip the script!!!

Note:
“Here’s my half for dinner, you’re a good friend”

Checks the PPFF boxes and triggers an ignore from them

Those Indiana Grand clams were delicious! Next time I’m getting the Aurora starfish.

 

[BGinGA]

Explains it
Idk why mine was created as business somehow

AND..... I just discovered that Paypal puts a limit on the amount of funds that can be received per month from sales, and puts the excess ON HOLD until goods/services have been delivered.... for up to ONE MONTH. These motherfuckers....

 

[Highli99]

I’m not a crypto freak but I have to say that moving stables coins from one wallet to another on a decentralized exchange with no intermediary is starting to look better and better.

 

[HaRDHouSeiNC]

Yah PayPal has the market share of service and does whatever it wants

I mean they keep fees from refunded payments FFS

 

[BGinGA]

We wanted to remind you that any payments from sales that you receive above $2,000.00 USD will be held temporarily and released after the orders are fulfilled.

You’re now nearing the amount that will be immediately available to you from sales each month, so some money from your sales may be held temporarily.

You can easily request that more money be available to you sooner. We'll also periodically adjust this release amount to match your business growth. And, if business is a little slower one month, the amount available to you won’t be reduced.

And to top it off, they started holding funds at $1600, not $2000 as stated above. None of this makes any @@#$% sense.

 

[HaRDHouSeiNC]

I’m not a crypto freak but I have to say that moving stables coins from one wallet to another on a decentralized exchange with no intermediary is starting to look better and better.

USDT is easy
No exchange needed once the community has enough in circulation
And ETH fees are dirt cheap now

 

[BGinGA]

So what are my other non-Paypal options? Fuck Venmo, it's the same cocksuckers. Zelle? How does that work? Not doing crypto...

 

[Highli99]

So what are my other non-Paypal options? Fuck Venmo, it's the same cocksuckers. Zelle? How does that work? Not doing crypto...

Zelle is REALLY easy. You set it up in onlining banking and most major banks participate. I can send right in my Bank of America app in about 5 seconds.

I’m happy to send you $ on it to show you. Pm me your cell phone or email and I’ll send you a dollar. That should get you started pretty well.

 

[kk405]

So what are my other non-Paypal options? Fuck Venmo, it's the same cocksuckers. Zelle? How does that work? Not doing crypto...

Unfortunately, there aren't many (any?) viable options. Zele has daily/weekly limits depending on the type of account you have at a bank: $2500 for most, $10K max for some.

And re PayPal F&F... not sure how long before they start limiting the amount of transfer dollar, withhold funds above a certain limit, or limit the number of transactions to stop people from diverting G&S transactions to F&F.

And I agree, crypto is NOT a real option for most PCF users.

Transactions on PCF won't be as easy as they used to be...most of us did nearly 100% via PayPal F&F...going forward, probably a combination of PayPal F&F, Venmo and Zelle for smaller transaction and wire transfer for larger ones...have to work on a new set of boilerplate instructions and a new 'Payment' section to be added to each sales listing I create, but definitely a pita.

 

[ekricket]

May have to go back to sending checks. Send check, once it arrives and clears the seller sends chips.
If seller doesn’t send chips, cancel check and report fraud here.

 

[BGinGA]

Signed up for Zelle today, but business accounts at my bank are charged 1% of incoming funds (no charge for sending money). Better than Paypal's 3% (plus no 1099 reporting or holding funds bullshit), but still not optimum with daily limits.

Selling high four- or five-figure sets will require multiple days/payments -- freakin' paper certified cashier's checks are starting to look appealing. At least banks actually DO something to earn that fee.

 

[HaRDHouSeiNC]

May have to go back to sending checks. Send check, once it arrives and clears the seller sends chips.
If seller doesn’t send chips, cancel check and report fraud here.

Those get stolen and washed too lately