Managed payments?

[cheech]

Here’s the thing I was talking about I copied and paste it off their website


Sellers enrolled in managed payments are not allowed to list the following items:

Adult only items, including movies and video games
Auction services
Bullion
Coins & paper money
Gift cards & coupons
Lodging, timeshares, vacation packages, and car rentals
Memberships for campground and RV parks
Motor vehicles
Smoking cessation products including nicotine patches and gum
Tickets for travel, events, or experiences
Wine
Listings that don't follow these rules may be removed from the site or from search results. Other actions we may take include lowering a seller's rating, charging additional fees, limiting buying and selling privileges, or suspending an account.

Why does eBay have this policy?

When eBay manages the end-to-end payments experience, there are additional restrictions on what items can be sold. We are working to expand the types of items allowed by sellers in managed payments, and ensure we are compliant to support them in the future.

 

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[Bassmaster96]

That doesn't make any sense. That also makes it sound like managed payments is optional, which would be good. Are they just going to stop the sell of vehicles and coins on eBay? I can't see that ever happening, there's a lot of revenue for them in those two places.

 

[Bassmaster96]

Managed payments is essential to enhancing the buying and selling experience on eBay, providing sellers one place to sell and get paid, and buyers more ways to pay. eBay will manage payments for most sellers by the end of 2020. Your account will be enabled for managed payments starting late next month. You are required to register by July 15 to ensure there are no interruptions to your account.

Register now in three simple steps:
1. Verify your information
2. Provide a checking account
3. Don’t miss a beat and keep selling!

Register Now

Running your business is simpler when eBay manages payments, and buyers have more ways to pay:
• Simpler to sell: Checkout is more flexible, with an easier experience for your buyers
• Simpler to get paid: Payouts are automatic, sent directly to your checking account
• Simpler to manage: Operations run smoother, with simplified fees, integrated reporting, and streamlined support

Once you register, nothing will change until eBay activates your account starting late July. We will notify you of your activation date well in advance, and will be sharing more information about the change, how it will benefit your business, and how to take full advantage of our new, simpler approach to payments.

Learn more about all the features and benefits when eBay manages your payments on the eBay Seller Center or watch our video here. For full fee details, click here. You can find additional information about the registration process on the Help Hub here. If you still have questions, you can request a call from one of our Payments team members there - we’re here for you.

Please click here to register for managed payments now.

*Please disregard this message if you have already registered for managed payments.*

 

[Bassmaster96]

This is the message I just got. They're really acting like it's mandatory

 

[Indigo Knight]

That doesn't make any sense. That also makes it sound like managed payments is optional, which would be good. Are they just going to stop the sell of vehicles and coins on eBay? I can't see that ever happening, there's a lot of revenue for them in those two places.

"Doesn't make sense" has been the main operating policy of eBay since around 2007 or so. Their management is a classic case of the left hand not knowing what the right hand is doing.

Supposedly, managed payments will support those categories in the future, but as of now there is conflicting information. Come July it's going to be a total disaster for a lot of eBay-based businesses, and frustration for a lot of buyers.

I remember the mess and resulting exodus from the platform when Paypal became all but mandatory years ago. Now that buyers and sellers are used to using PayPal almost exclusively, it's the same mess all over again.

And yes, it seems managed payments will be mandatory for all sellers. Much like Amazon's integrated payment system is required for all Amazon sellers.

 

[Bassmaster96]

"Doesn't make sense" has been the main operating policy of eBay since around 2007 or so. Their management is a classic case of the left hand not knowing what the right hand is doing.

Supposedly, managed payments will support those categories in the future, but as of now there is conflicting information. Come July it's going to be a total disaster for a lot of eBay-based businesses, and frustration for a lot of buyers.

I remember the mess and resulting exodus from the platform when Paypal became all but mandatory years ago. Now that buyers and sellers are used to using PayPal almost exclusively, it's the same mess all over again.

And yes, it seems managed payments will be mandatory for all sellers. Much like Amazon's integrated payment system is required for all Amazon sellers.

So if you don't register by the deadline what will they do, restrict your account? I'm also confused on why my date is earlier than other sellers.

 

[cheech]

So if you don't register by the deadline what will they do, restrict your account? I'm also confused on why my date is earlier than other sellers.

Good question I’m going to try not to register for as long as I can

 

[trdking]

Heres the skinny
eBay is starting managed payments because not everyone uses Paypal anymore. There are many electronic pay sites like apple pay and google pay that currently are not supported without a double dip through paypal. Today if you pay using paypal and use a credit card your seller fee doubles because paypal has to cover the points charged by the credit card as well as make their spiff for the transaction. If eBay manages the payment there is no double dip. They will definitely make more money by managing the transaction but when a credit card is used they make less and you don't get double popped. Thus the .30 cent transaction fee. Sometimes that is all they will get.
You will end up making more money per transaction.
What I don't like is
Money will now go straight to my checking account. It is more transparent.
eBay starting this years close, Is issuing tax forms 1099 and is reporting your sales to uncle sam if you do more than 200 transactions in a year or sell more than 40K per year. (I am hosed)
eBay has also started collecting sales tax. Even for out of state transactions. This is a major bummer because eBay buyers are bottom feeders and they as a whole will be willing to spend less for an item know ing it will be taxed by their state rates. That means your average sale will be reduced and yes you the seller will tax the 6 to 10% tax hit. ( I have already seen a drop in my profits. (still better than amazon which is the gestapo)
In eBays defense they have battled these issues for years and the gubment is applying so much pressure that eBay is finally giving in.

My advice
More garage and private sale, offer up, and where ever you can sell for cash.
I wish I could just bypass the entire internet process but I can't so I now make less and have my gross tickets report to uncle USA

 

[Indigo Knight]

So if you don't register by the deadline what will they do, restrict your account? I'm also confused on why my date is earlier than other sellers.

If you don't register by the deadline, you won't be able to sell anymore with that account. Sellers are being forced into the program in waves. I have not been given a date yet, and other sellers were forced into the program over a year ago. What wave you get assigned to seems to be random.

 

[RobNC]

I got another email about this today saying I'm required to register by July 15 or something like that. It looks like PayPal will still be an option, but a bank account is still required or something like that, so they can send the direct payments from Apple pay, or whatever to that, I guess. Anyone else get an email? Seems like a lot of trouble for really no good to me.

Nah, you mentioning Apple anything is a locked door to me. I won't give them a dime. Looks like the end of me buying on Ebay. Heck with em.

 

[Bassmaster96]

Heres the skinny
eBay is starting managed payments because not everyone uses Paypal anymore. There are many electronic pay sites like apple pay and google pay that currently are not supported without a double dip through paypal. Today if you pay using paypal and use a credit card your seller fee doubles because paypal has to cover the points charged by the credit card as well as make their spiff for the transaction. If eBay manages the payment there is no double dip. They will definitely make more money by managing the transaction but when a credit card is used they make less and you don't get double popped. Thus the .30 cent transaction fee. Sometimes that is all they will get.
You will end up making more money per transaction.
What I don't like is
Money will now go straight to my checking account. It is more transparent.
eBay starting this years close, Is issuing tax forms 1099 and is reporting your sales to uncle sam if you do more than 200 transactions in a year or sell more than 40K per year. (I am hosed)
eBay has also started collecting sales tax. Even for out of state transactions. This is a major bummer because eBay buyers are bottom feeders and they as a whole will be willing to spend less for an item know ing it will be taxed by their state rates. That means your average sale will be reduced and yes you the seller will tax the 6 to 10% tax hit. ( I have already seen a drop in my profits. (still better than amazon which is the gestapo)
In eBays defense they have battled these issues for years and the gubment is applying so much pressure that eBay is finally giving in.

My advice
More garage and private sale, offer up, and where ever you can sell for cash.
I wish I could just bypass the entire internet process but I can't so I now make less and have my gross tickets report to uncle USA

Do you have a link to the tax stuff or is that speculation? It makes sense, I didn't think about that part, but I really hate the sounds of it.

 

[Rented Mule]

Heres the skinny
eBay is starting managed payments because not everyone uses Paypal anymore. There are many electronic pay sites like apple pay and google pay that currently are not supported without a double dip through paypal. Today if you pay using paypal and use a credit card your seller fee doubles because paypal has to cover the points charged by the credit card as well as make their spiff for the transaction. If eBay manages the payment there is no double dip. They will definitely make more money by managing the transaction but when a credit card is used they make less and you don't get double popped. Thus the .30 cent transaction fee. Sometimes that is all they will get.
You will end up making more money per transaction.
What I don't like is
Money will now go straight to my checking account. It is more transparent.
eBay starting this years close, Is issuing tax forms 1099 and is reporting your sales to uncle sam if you do more than 200 transactions in a year or sell more than 40K per year. (I am hosed)
eBay has also started collecting sales tax. Even for out of state transactions. This is a major bummer because eBay buyers are bottom feeders and they as a whole will be willing to spend less for an item know ing it will be taxed by their state rates. That means your average sale will be reduced and yes you the seller will tax the 6 to 10% tax hit. ( I have already seen a drop in my profits. (still better than amazon which is the gestapo)
In eBays defense they have battled these issues for years and the gubment is applying so much pressure that eBay is finally giving in.

My advice
More garage and private sale, offer up, and where ever you can sell for cash.
I wish I could just bypass the entire internet process but I can't so I now make less and have my gross tickets report to uncle USA

I believe the threshold for eBay reporting to the IRS via a 1099 form is 200 transactions AND $20K in sales in a year.

See https://www.ebay.com/help/selling/fees-credits-invoices/ebay-form-1099k?id=4794

 

[Bassmaster96]

I believe the threshold for eBay reporting to the IRS via a 1099 form is 200 transactions AND $20K in sales in a year.

See https://www.ebay.com/help/selling/fees-credits-invoices/ebay-form-1099k?id=4794

That's what it is currently, as long as they don't change it.

 

[Indigo Knight]

I believe the threshold for eBay reporting to the IRS via a 1099 form is 200 transactions AND $20K in sales in a year.

See https://www.ebay.com/help/selling/fees-credits-invoices/ebay-form-1099k?id=4794

This is correct, you have to hit both thresholds to get issued a 1099-K, EXCEPT for sellers in Massachusetts and Vermont where threshold is a mere $600 regardless of the number of transactions. I'm unaware of any other state differences, but expect more laws in the future.

I would strongly recommend reporting all received electronic payments on your taxes. If you do a lot of selling, you should be using a business structure so you can deduct cost of goods sold and other expenses.

 

[trdhrdr007]

The 1099 creates a paper trail but federal tax code clearly states that taxes are due on income in excess of $600.

 

[Bassmaster96]

So for taxes with managed payments, supposedly your Paypal should be less right? When will eBay start providing the 1099? If PayPal and eBay themselves don't match up for a total on yearly sales, then we may not get 1099 forms even if we qualify due to the split, right?


For you guys that do taxes and sell enough to have to, how do you do it? Basically the way I think about it is your gross sells for the year minus fees for ebay, paypal, etc. minus shipping, minus cost of items sold, and that's pretty much your taxable income. Is that right?

 

[trdhrdr007]

I've said it before & I'll say it again. Anyone that makes more than $600/year on a side hustle is required to file under federal tax code. Nowhere in the tax code does it say you are exempt from paying until someone issues a 1099. The 1099 creates a definitive paper trail but it would be fairly easy for the IRS to track someone's transactions on eBay. I suspect the chance of them doing so are fairly slim.

I pay taxes on eBay income. Like any other business the calculation for income is gross income minus expenses. In my case expenses are eBay/PayPal fees, postage, cost of goods sold, office supplies, cell phone, & vehicle expenses.

 

[Bassmaster96]

Alright, so I was activated for the managed payments yesterday, and I am already not a fan. I sold something this morning and they've got my funds on hold, it says "while it processes" or some junk. The funds aren't in paypal and they aren't in the bank account that I have set up for manged payments. They don't even show pending anywhere. Does anyone know if there is always going to be a hold on funds or if they aren't going to be available for a few days like when we first got accounts, because if that's the case, it's really going to get on my nerves. Treating long time ebay members like they're starting over is not a very good way to treat your sellers.

 

[cheech]

Alright, so I was activated for the managed payments yesterday, and I am already not a fan. I sold something this morning and they've got my funds on hold, it says "while it processes" or some junk. The funds aren't in paypal and they aren't in the bank account that I have set up for manged payments. They don't even show pending anywhere. Does anyone know if there is always going to be a hold on funds or if they aren't going to be available for a few days like when we first got accounts, because if that's the case, it's really going to get on my nerves. Treating long time ebay members like they're starting over is not a very good way to treat your sellers.

I did the same and signed up it will get deposited once a week or once a month however you set it up as far as I see that’s the only time the funds come off of hold

 

[Bassmaster96]

I did the same and signed up it will get deposited once a week or once a month however you set it up as far as I see that’s the only time the funds come off of hold

I checked into it and it also gave me an option to get daily payments, but I don't know how exactly that will work. It just looks like a cluster to me like I was afraid of