Why do some Sellers insist on Friends And Family PayPal Payment Mode ?

[Jake Larsen]

I do not understand buyers who are worried about F&F scams. That’s what a video call is for. As others have stated, i see this as a community of fellow hunters. If somebody isn’t willing to take a call on an item to verify, I’m not interested in buying from them. Also check some post history on the seller. It’s really not that hard to figure out if something is fishy. Coming from somebody who has “almost” been scammed twice on here…


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[Jake Larsen]

I usually ask to use F&F to keep the price as low as I can so I don’t lose money and the buyer gets a better price.
Everyone buying and selling is just trying to get the most out of their money.
But I would increase the price if someone was totally against F&F, but I have never ran into that.

I have. Just sold something to someone who i sold a fairly expensive item to last year. Had multiple text conversations with him, offered to video call to verify. Still would only do the transaction G&S. I had to chuckle…did your gear not show up last time??


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[Shortschaf]

I don't think this is entirely accurate. If you do tie your SS to the account you can avoid the tax witholding. The 24% is only for accounts that haven't been tied to a SS.

Yes, how you laid it out is correct. To clarify:
If I tie my SS to the account, they will not withhold, but they WILL generate a tax statement. I have no interest in doing that. I am not a business, and lose money on all of my sold items, so the government can keep out of it.
Therefore, I do not tie SS, and they automatically withhold.

 

[Dos Perros]

Yes, how you laid it out is correct. To clarify:
If I tie my SS to the account, they will not withhold, but they WILL generate a tax statement. I have no interest in doing that. I am not a business, and lose money on all of my sold items, so the government can keep out of it.
Therefore, I do not tie SS, and they automatically withhold.

I get it, it's a hassle. But to be clear you only pay taxes on the profit. If you buy something new and then sell it used for less no taxes are due. My wife does our taxes so...

 

[CorbLand]

I get it, it's a hassle. But to be clear you only pay taxes on the profit. If you buy something new and then sell it used for less no taxes are due. My wife does our taxes so...

I don’t ever worry about having to pay taxes. I just don’t want the hassle of proving that I did lose money.

 

[rclouse79]

I would only do F&F with someone who was not a friend or family if I was willing to part ways with cash. You are probably fine the vast majority of times, but I don't want the time I get burned to be for an amount that would make me lose sleep at night.

 

[ScottinPA]

Price is net to me - you pay G&S and add fees or F&F whichever makes you comfortable.

 

[Steve300xcw]

I cant be the only one thats still paying with a check or money order?

 

[wind gypsy]

I don’t ever worry about having to pay taxes. I just don’t want the hassle of proving that I did lose money.

You didn't keep the receipt from that thing you bought off the internet or from the classifieds 4 years ago?

 

[wind gypsy]

I cant be the only one thats still paying with a check or money order?

I think there's 3 other boomers in the same boat around here somewhere.

 

[CorbLand]

You didn't keep the receipt from that thing you bought off the internet or from the classifieds 4 years ago?

4 years ago? I couldn’t find the receipt if I bought it 10 minutes ago.

 

[Steve300xcw]

I think there's 3 other boomers in the same boat around here somewhere.

Boomer? Thats funny

Sent out a money order a while back. Kinda surprised me that the guy wasnt sure what that was.

 

[Dos XX]

PayPal is not getting my ssn, Below is some info from them. While the threshold for getting a W9 is more than $600 currently, it is going down to $600.00.

But, what it said when I set up an account a few months ago was that once you cross $600, they are going to withhold 24% if they don't have your ssn. I'm not doing it. If someone doesn't like the F&F, they can move on to a different for sale listing.

I also think we don't use the feedback system here. I have sold several things and never received feedback.
I may be guilty of it myself.

You can call someone and tell a lot about them. You can look at their post activity on here and get a feel for them, too. If you need "protection" on $200 worth of something, and you can't get a reading on someone with a call or by their postings, then move on.

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How will PayPal use my TIN or SSN and how do I add it?​

The Internal Revenue Service (IRS) announced transitional reporting requirements for payments received for goods and services, which will lower the federal Form 1099-K reporting threshold over a 3-year period. We’ve summarized the IRS thresholds for Form 1099-K below.

Tax Year	Year Form Available	Federal Reporting Threshold
2024	2025	More than $5,000 USD in gross sales from goods or services in the calendar year.
2025	2026	More than $2,500 USD in gross sales from goods or services in the calendar year.
2026	2027	More than $600 USD in gross sales from goods or services in the calendar year.

You may have been notified to provide your Taxpayer Identification Number (TIN) and confirm your tax status if you’ve received payments for goods or services through PayPal, and don’t have a TIN updated in our records. This is required by the IRS and US state revenue authorities.

To ensure that payment information is accurately reported, where required, please update your account information by providing a TIN to avoid any potential limitations (such as tax holds) and 24% backup withholding. A TIN can be a Social Security Number (SSN), Employer Identification Number (EIN), or Individual Taxpayer Identification Number (ITIN.)

 

[fbhandler]

The G&S scams on the seller are real… Maybe not as frequent as buyers getting burned with F&F but like all scams these days there is/has been a significant increase. Then add in the nonsense of PP’s tax policies and item restrictions and smart people start asking why on earth would I sell G&S? It really does cut both ways !

 

[MuleyFever]

The G&S scams on the seller are real… Maybe not as frequent as buyers getting burned with F&F but like all scams these days there is/has been a significant increase. Then add in the nonsense of PP’s tax policies and item restrictions and smart people start asking why on earth would I sell G&S? It really does cut both ways !

This is why I am to the point I am only selling stuff with F&F payment. I have been on here long enough I've earned it. If you don't like it don't buy it.

 

[Kbhillhunter]

I buy and sell so much on in the classifieds that tripping the reporting limits would just be a huge headache. Id rather deal on the quality of my feedback and if someone is not comfortable with that, I don't hold it against them, just means it's not a good match for buyer and seller.

I think the fees are really not much of an issue for most. I always price my stuff with the cost to sell in mind. Just the reporting issues that most would rather not deal with.

 

[Dos Perros]

Guys, it’s not a “huge hassle.” I get it if you’re opposed for idealistic reasons or want to avoid the scam potential, but the convenience thing is dubious. It’s one form of many you file when you file taxes. You don’t have to substantiate the value of your sold goods when acquired unless audited. And if you do get audited the incremental difference in rape factor is negligible.

 

[ACHILLES]

Pretty ironic we’re using financial technology companies to buy guns and parts that are anti gun.

 

[sndmn11]

I've refunded payments that were g&s immediately on receiving them. I have no desire to do the tax thing.

 

[realunlucky]

Don't forget this Tidbit

It's rule 14 of doing business in the classifieds

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