[FSOT] New Paypal persona payment alert

[chris deitzel]

THIS SHOULD BE ADDED TO THE GUIDELINES

I got this email from paypal this week regarding personal payments for goods. From now on people should not send payments as personal payments or the seller could end up getting in trouble for doing so.

Thank you for using PayPal to accept money with your PayPal account. You can receive money from friends and family for personal payments within the US for free. Personal payments are for sending a gift, splitting a lunch bill, paying your share of the living expenses, and everyday exchanges of money between friends and family.

If you receive money as a payment for a purchase or service, you will continue to incur fees.

We've noticed that some customers are sending you personal payments for purchases of items or services.

Unfortunately, this is against our policies, and we need your help correcting it. Please don't ask or allow your customers to use personal payments to pay for their purchases.

If we continue to see such activity, we may have to disable your ability to receive free personal payments, and then you will pay fees for all money received through PayPal.

Here's how you can find more information about payment types and fees:

Click "Fees" at the bottom of any PayPal page
Click "Legal Agreements" at the bottom of any PayPal page, and then click "PayPal User Agreement." Sections 4 and 8 refer to receiving money and fees.

If you have any questions, concerns, or think we may have made a mistake, please contact us at [email protected].

We value your business and appreciate your cooperation.

Don't forget, we're always around if you need us. Just click "Help" in the top right corner of any PayPal page to visit our improved Help Center.[/COLOR]

 

[theviolinman]

How do they know the gifts were payments for merchandise? Are people putting it in the notes or something?

 

[Grungedude42]

Yeah, that'll happen, especially if someone tries to use buyer protection on a personal fund deal gone bad, or particulalry high volume users. Or, sometimes, if the just happen to notice it. Happens to guys on my car forums too.

 

[slickwheels]

Just one of the many reasons I no longer support paypal.

 

[tbird888]

How do they know the gifts were payments for merchandise? Are people putting it in the notes or something?

Seriously. How does PayPal "know" the cause of why you're receiving the gifts? I put comments when I send gifts, but it's always "Thanks again."

 

[akguanja]

I have to disagree, paypal is the best online payment system out there.

And as far as the whole gift thing when i first got onto this site i was blown away by how many people force you to send money via gift. doing this completely takes away from the safety net of filing a claim if you don't receive the item and or the item is in condition that was not described. Yet i do it most times because some people on here wont allow any other way.

And i STILL have to pay a fee sending gift cause i don't keep money in my paypal and pay with my credit card.

Being discs aren't very expensive(for the most part) i just go ahead with it but iof its a expensive one i will send the money as a purchase of goods and pay the fee.

The whole gift thing bothers me in general for lack of security on the buyers end... most forums that have a marketplace have strict guidelines about people not paying with gift for the same reasons...

 

[BirdmanCR]

I've heard this year the government is going to be doing a LARGE audit on paypal to see where everyones cash is going. And to see if taxes are properly being paid.

 

[tampabay]

It really isn't fair to be mad at paypal for this. They aren't a massive bank exchange system. They are supposed to be used for purchases. When you actually purchase something it should be taxed fee'd whatever, and everyone just sending as gift exploits their system.

When a company fixes something that users are exploiting are lying about, I don't think its fair to bash them or claim you will no longer support them. If you don't want to use them anymore that's fine but I don't think you should claim malfeasance on their part.

 

[chris deitzel]

I liked paypal before it was owned by ebay!!! Back in the day it used to be www.x.com

Apparently ebay started a new company at that site now also!!!

 

[theviolinman]

What bothers me is the possibility of an IRS audit over something that I consider to be a hobby. I haven't saved receipts from all the discs and postage I've purchased, and margins on these discs are thin enough without paying 20% or more in self employment taxes over these sales. I guess I was hoping that the personal payments would be insulation from the tax issue.

 

[kw83028]

What bothers me is the possibility of an IRS audit over something that I consider to be a hobby. I haven't saved receipts from all the discs and postage I've purchased, and margins on these discs are thin enough without paying 20% or more in self employment taxes over these sales. I guess I was hoping that the personal payments would be insulation from the tax issue.

Yea it's coming I bet. Last year I had over $20K in disc sales on ebay and they sent me a tax form. Now I try not to sell on there and created my own personal storefront

 

[theviolinman]

What bothers me is the possibility of an IRS audit over something that I consider to be a hobby. I haven't saved receipts from all the discs and postage I've purchased, and margins on these discs are thin enough without paying 20% or more in self employment taxes over these sales. I guess I was hoping that the personal payments would be insulation from the tax issue.

 

[pablo.diablo]

I believe you would only get audited if you receive more than $x in gifts, and I seem to remember seeing that number somewhere around $20K. But I don't really care either way.

They can't tell based on the transaction itself whether it was for goods/services. But once you hit that certain total dollar amount annually, you can bet their interest will be piqued.

 

[BirdmanCR]

Well the government would have no reason for an audit if paypal hadn't been abused. People sending drug money. Purchasing x amount of goods that were not taxed. Plus im sure the government wants to be able to charge paypal for the amount of untaxed goods. Audit time .

 

[chainbangerslanger]

paypal should be happy to ten percent of my payout on my item sold on ebay so they can suck it

 

[pablo.diablo]

Well the government would have no reason for an audit if paypal hadn't been abused.

Yes they would, a non-federal-bank company is handling millions of $$$ transactions over the internet.

Just guessing, but I don't think the Gov't (which is dictated by lobbyists, who are funded by corporations, that are controlled by banks) likes that concept. They wanna make sure they get their cut.

They will always find a reason to interfere with such practices. And if they don't cooperate they will find a reason to change it, outlaw it, or render it otherwise extinct.

 

[Arocep]

paypal should be happy to ten percent of my payout on my item sold on ebay so they can suck it

Exactly

Yes they would, a non-federal-bank company is handling millions of $$$ transactions over the internet.

Just guessing, but I don't think the Gov't (which is dictated by lobbyists, who are funded by corporations, that are controlled by banks) likes that concept. They wanna make sure they get their cut.

They will always find a reason to interfere with such practices. And if they don't cooperate they will find a reason to change it, outlaw it, or render it otherwise extinct.

And the proof of guilt falls on them to prove it. They would then have to argue the definition of "friend" because i could simply say yea i sold it to one of my buddies on the disc golf forum. Way too much work to break down every single transaction, and prove policy breach.

 

[bretttallen]

Government already gets all my money anyway....can't take what I don't have lmao

 

[discgolf4lif3]

Government already gets all my money anyway....can't take what I don't have lmao

Haha:hfive:

 

[bmast]

Can this be lanfilled yet?