I am used to buying things with PayPal, not selling things. Obviously buying with PayPal is free to the buyer.
Does anybody know if PayPal charges a fee to receive money as a seller? I'm looking to receive $1,300-$1,400.
Bill Robertson
#5939
Posts: 942
I am used to buying things with PayPal, not selling things. Obviously buying with PayPal is free to the buyer.
Does anybody know if PayPal charges a fee to receive money as a seller? I'm looking to receive $1,300-$1,400.
Bill Robertson
#5939
Posts: 80
My VIN: 2784
Club(s): (DMA)
Depends on how you do it. If you have the user send you money "as a gift", PayPal doesn't charge a fee. If they send you money as "goods or services" (or if you send them an invoice) they do send you a fee.Originally Posted by content22207_2
The fee schedule is as follows:
https://www.paypal.com/selfhelp/article/FAQ690
To quote: However, if you receive money for goods or services (such as from selling an item on eBay), the fee for each transaction is 2.9% plus $0.30 USD of the amount you receive.
Location: Vancouver, BC
Posts: 3,385
My VIN: thirty two 'o five
Club(s): (PNDC)
There are online calculators to see how much PayPal will skim off the top, and they tell you how much to ask for to ensure you get your full amount.
If you send money as a gift you are not covered by PayPal protection as a buyer. Just FYI. I don't think bill is about to rip anyone off, but if you gift it to him you have no recourse down the road.
Dave
Here, somewhere.
Location: Atlanta OTP GA
Posts: 7,084
My VIN: 2743
Club(s): (SEDOC) (DCH) (DCUK) (DOC-UK)
I have often agreed with the other party to split the paypal fee 50/50.
Dermot
VIN 2743, B/A, Frame 2227, engine 2320
I don't always drive cars, but when I do, I prefer DeLoreans
http://www.will-to-live.org
No-one is to stone anyone, even, and I want to make this absolutely clear, even if they do say "carburetor"
Location: Bloomington, IN
Posts: 875
My VIN: 891, 1045
The fee is 2.9% for domestic and 3.9% for international if I remember correctly. When it's a large amount I ask the buyer to cover the fees if they insist on using Paypal. If they aren't in a hurry I'll also take personal checks and USPS Money orders so there's no fees. Personal checks are rare anymore.
The issue with sending payment as a gift means buyer/seller protection is different.
-James . . . "Life without knowledge is death in disguise." ~ H.P.G.
Posts: 942
The last thing I want to do is upset PayPal -- I need them to buy stuff myself.
I will give carb converters the option of PayPal and reimburse my 3% fee (they are already reimbursing my other costs), or just send an old fashioned check.
Bill Robertson
#5939
Location: Lansing, MI
Posts: 1,168
My VIN: 10270
Also if you cross a certain payment threshold Paypal will send a 1099 and report the income to the IRS.
Just keep a record of your costs and deduct them as hobby expenses and it shouldn't add substantially (if at all) to your taxes.
Luke S :: 10270 :: 82 Grey 5-Speed :: Single Watercooled T3 .60/.48 :: Borla Exhaust :: MSD Ignition :: MS3X Fully SFI Odd-fire EFI :: DevilsOwn Methanol Injection
Location: Lansing, MI
Posts: 1,168
My VIN: 10270
Top ways to not keep Paypal happy:
1: Large amounts of gift payments
2: Accepting charity payments without proving charity status
3: Selling items on preorder
Best practices:
4: Keep tracking numbers
5: Avoid selling intangible goods
Regarding gifts - sometimes the payer has the option to cover payment costs themselves. Not quite sure what the circumstances are surrounding that or which account types / payment types are eligible.
Luke S :: 10270 :: 82 Grey 5-Speed :: Single Watercooled T3 .60/.48 :: Borla Exhaust :: MSD Ignition :: MS3X Fully SFI Odd-fire EFI :: DevilsOwn Methanol Injection
Posts: 942
Alright: cash it is.
And a kidney.
And the first born son.
(K-Jet is looking better and better all the time).
I seem to remember writing a check when I bought my house -- I am sure they will work just fine for carb conversions too.
Bill Robertson
#5939
Location: Lansing, MI
Posts: 1,168
My VIN: 10270
It's $20,000 per year and more than 200 payments. You'll be OK.
On the other hand, if you make a business out of it there are some appealing deductions...
Luke S :: 10270 :: 82 Grey 5-Speed :: Single Watercooled T3 .60/.48 :: Borla Exhaust :: MSD Ignition :: MS3X Fully SFI Odd-fire EFI :: DevilsOwn Methanol Injection
Posting Permissions
Reply With Quote
