ebays new payment processing...wtf man!!!?

mhenson42 said:
the target fed funds rate is 0-25bps...they aren't making much if anything on the float at this point in time. Most banks are paying in the 3 bps range, if that, for a transaction account. Plus an ACH transaction takes 3 days to clear. They are now just not making funds available while in clearing like paypal will do.
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I guess I figured that if they float my money for a few days, they are floating other's money for a few days. New money comes in to replace the old money going out so the end result after a year of that is a full year of interest on the average balance of all the floats. It doesn't seem insignificant.
 
SpiderWars said:
I guess I figured that if they float my money for a few days, they are floating other's money for a few days. New money comes in to replace the old money going out so the end result after a year of that is a full year of interest on the average balance of all the floats. It doesn't seem insignificant.
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at 3bps they'd have to float a lot of $ to be worthwhile. A billion on average for a year is only $300k...I doubt they're anywhere close to a billion in float
 
The fact that they're holding my money for a few days doesn't bother me. It's not like eBay isn't going to pay me.

The fact that the fees are going up doesn't bother me. That's the opportunity cost of getting your gear in front of a far larger audience and the potential for it to get bid up.

What bothers me is the 1099ing. That's where we could all really get screwed.

I'm pretty happy that I've only got one more piece of gear on my bucket list! Good time to reel it in.
 
mhenson42 said:
at 3bps they'd have to float a lot of $ to be worthwhile. A billion on average for a year is only $300k...I doubt they're anywhere close to a billion in float
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(y) Yeah I believe you on all that. But I guess I assumed an Etsy bean counter sees that as $300k 'free money'.
 
It's 100% free to sell stuff on forums, facebook marketplace and facebook groups :)

I always put my bigger listings on reverb up $100-200 more to account for fees.
 
Wizard of Ozz said:
It's just not eBay... in the new "Covid Relief Bill"... there was a part that allowed different states to lower the taxable threshold of online payments received... some states were lowered to $600. So if you go over $600 in PP payments received... boom! 1099K.

Read more here:

https://www.ecommercebytes.com/C/abblog/blog.pl?/comments/2021/3/1615153514.html
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Have seen that before. Doesn't make sense to me.

How do they prove what you paid for something that you just sold?
 
Philo Beddoe said:
How? I don't keep any kind of receipts.

Never have and not going to start now due to some goverment vultures..
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potential tax liability comes with the proceeds. If you got a 1099 just estimate a cost if you don’t have paper records. You technically have to be able to to prove cost. I wouldn’t worry about it now though...only matters if you get audited. Which isn’t likely. But you should start saving receipts and keep a contemporaneous log of your transactions.
 
I just checked good old PayPal since I got a large payment in from overseas. They raised the international conversion/convenience/rapage fee from 4.45% to 4.6% this year. Not a huge bump, but when you quote the buyer one fee and it goes higher then they look at you funny. Needless to say, if I was inclined to read all 15 pages of my business account updates, I might have found this out. But PayPal makes it so difficult to track down what your fee schedule is you never really know until you get a payment from outside the USA and go "WTF?"

And that's why I have a WTF! look on my face right now. They all shave every possible percentage they can from your money, though.
 
fb marketplace is where its at and i have moved an entire estate of gear from a deceased pal.
how long will it last for free with no 1099 is the big question
 
controlled_voltage said:
fb marketplace is where its at and i have moved an entire estate of gear from a deceased pal.
how long will it last for free with no 1099 is the big question
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Read this: https://www.cnbc.com/2021/03/26/its...g-the-irs-about-income-from-online-sales.html

Starting in 2022..Quoting here: "the federal threshold for issuing the 1099-K will drop to $600 with no minimum transaction level, due to a provision in the recently enacted American Rescue Plan Act. (Some states already have lower minimums.)"

Also using fb marketplace etc. is no safe haven IF you are using PP.

If I'm reading it right you will still get a 1099k if the transaction goes over $600 and PP is used..probably over 90% of guitar/amps sales that happen are over $600.
 
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Before the pandemic hit, GC was becoming a better place to sell. I was pleasantly surprised at how much they were offering for gear. Perhaps we'll get back to that in the future.

Sweetwater also has a used marketplace as an option.
 
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