MTFCA Forum

When you sold items on classified parts, how did you get paid?

pay pal is the easiest

Definitely PayPal. I’ll take a check from some people but if a check is sent, I prefer a postal money order. You can’t go wrong with cash at pickup either.

Brad

Just to clarify - PayPal has two options - both use the receivers email address as the account to receive the funds
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PayPal Sending to a Friend is a simple transfer of funds from the sender- under this method there is no protection for the sender
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PayPal Paying for an Item or service - buyer has purchase protection and seller pays a fee
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The funds used to make the payment can be those retained in your PayPal account to which you can transfer to/from your bank (checking, savings).
You can also pay by specifying the monies to come from your checking, savings Bank or credit card.

If you are the seller and specify that payment is to be made with the Paying for an Item or service option you may qualify for getting a 1099-K for reporting income over $600. Receiving money vie Sending to a Friend avoids the Tax rule and that's why we use it

There are other options within PayPal to pay depending on how you setup your account - even to pay using them as a credit card.

NOTE to Sellers:
All forms of checks (personal or certified), money orders etc etc are the same in the eyes of your bank. While the bank "cashes" the check you are still responsible for the amount until it "clears" and the money is transferred from the source banl to your account - usually 3 business days.

Beware of postal money orders…! I received one a couple of years back I got the money order in the mail, I packed up the item headed off to the post office to cash the money order as I always do, and ship the item. The clerk looked at the money order oddly held it to the light, felt of the texture again then typed the number into her computer that was on the money order and it was completely invalid…! It was a counterfeit and a very good one she said, I feel sure had I took it to my bank they would have cashed it, and then I’d been screwed outta $500 plus the item would have been long gone by the time the bank found that it was fake..!
I’ve never cashed a postal money order anywhere but the post office, so my advice is if you deal in that method always cash them at the post office never go to your bank.

As an occasional shopper, I have met some nice people selling parts I needed, both here and on T-bay. I've paid with personal check and paypal and received the goods quickly. Recently on a small purchase in Forum Classifieds, I was chastised by the seller for not using PP 'friends and family'. I had never used that feature, and after reading up on it, I will not use it. After the purchase, I did send the seller a couple dollars to make up the PP fee he paid, just because he grumbled about it in several e-mails back to me.

But I respectfully suggest to sellers, just include that fee in your price, I'll gladly pay that as the normal cost of doing business. Many local small businesses here have a cash and credit price structure, and I don't mind paying the charge if I'm not using cash. YMMV

Most often, I ship out the item and I tell the buyer to look at the postage amount when the package arrives and add it to the agreed upon price, then mail me a check. Nobody has ever "disappointed me" by "forgetting" to pay me. Then again, we're not talking about hundreds of dollars here. Also, not suggesting this test of human nature to anyone else. (I don't do this with eBay sales. I'm talking more about sales to folks on various forums I participate in, such as this one.)

No Friends and Family when doing Pay-Pal, you lose all protection doing it that way and are cheating. I send or ask for an invoice. Cash works fine and will accept a check or money order too.

Do sellers know that with PayPal friends & family the buyer pays the fee?
Craig.

Craig Leach wrote: ↑

Sat Jan 21, 2023 1:24 pm

Do sellers know that with PayPal friends & family the buyer pays the fee?
Craig.

Here is the PayPal site explanation of payment methods and which have fees and protection
https://www.paypal.com/webapps/mpp/popu ... nt-methods

Sending money to Friends and Family
When you send money in the U.S. to Friends and Family using your PayPal balance or your bank account, we waive all fees, so we always show you these payment options first, even if you have a set a preferred payment method for your online purchases.

There are fees if you choose to send from a credit or debit card

I have always wanted a personal check as preferred payment method. Never had a problem and have sent items out before the buyer even sent the money. If I get shafted I might just show up at the address it shipped to someday but if I don't know the buyer I will wait for the check to clear.

I too have always preferred a personal check. Have not gotten stuck yet.

I guess I’m with John, Bob and Jerry. I only sell T parts on our Forum Classifieds. In fact, most buyers are prominent names here. When an agreement is reached, I go into town when 4-5 errands pile up; mail the part and always send the buyer a tracking number. Never been disappointed and it seems to strengthen Forum Friends relationships

The IRS has delayed the issuance of the 1099-K's with the low $600 threshold until 2024; using 2023 as the consumer transition and educational period.

https://www.taxpayeradvocate.irs.gov/ne ... %2C%202023.

I expect more changes to come as time gets closer.

csnailnrun wrote: ↑

Sun Jan 22, 2023 9:34 am

The IRS has delayed the issuance of the 1099-K's with the low $600 threshold until 2024; using 2023 as the consumer transition and educational period.

https://www.taxpayeradvocate.irs.gov/ne ... %2C%202023.

I expect more changes to come as time gets closer.

So there is no confusion about the delay stated by the IRS
"Notice 2023-10 delaying the requirement for electronic payment networks to report transactions over $600 to the IRS on a Form 1099-K, Payment Card and Third Party Network Transactions, until 2024" This means that sales transacted (money transfers) via a 3rd Party like eBay Etsy and Facebook in 2023 will need to be reported when you file the 2023 tax return by April 2024. Forum sales via check, cash & PayPal to friends & Family will not generate a 1099-K. However any other sales transaction via PayPal where purchase protection is involved will require PayPal to send you a 1099-K for filing if you accumulate $600 or more in such transactions during the year.

So here's the problem with this Tax Law: many people sell their old stuff on eBay for example for less than what they paid for it. Unfortunately they no longer have their sales receipts to prove it was sold at a loss so the entire sales amount is subject to being taxed. Now when it comes to your Model T parts for which you have kept accurate records on the amount of purchase etc, guess what We all know that your "profit" is still sitting on the shelf or wrapped up in a Model T that will never sell for what you put into it.

Now when this tax law in the American Rescue Plan ($600 threshold) was being voted on in Congress both Democrats & Republicans argued to raise the limit to $5,000 & others to $10,000. As usual no compromise was reached so it stayed at $600. Now the "Debt Limit" issue is up again (every since 2001) so what does that mean. Since Taxes don't cover Government spending they borrow the money. The limit was intended as a stop gap measure to prevent endless spending programs. Don't count on the Government cutting sources on income (taxes) until the Debt Limit is reduced.
Many government programs are provided to specific sectors of the citizenry so politicians can use them in their campaign speeches .

Venmo paypal check on bank wire
Got a free no cost bank account linked to these then I can transfer to my main account
I do give my buyers a choice if using PayPal either F&F or add 5%

I prefer PayPal as it’s fast and easy for both sellers and buyers. When browsing the classifieds I prefer to buy from sellers that accept PayPal. If a seller only accepts checks, I will only buy from that seller, if they’re the only seller of a specific item. I avoid lots of purchases because seller prefers a check and will wait for another listing or even buy off eBay

For both Buying & selling my preference is always PayPal. When PayPal is not a choice for a purchase, then my credit card. Both have protection.
I don't use the others Venmo, Zelle, etc don't see an advantage.
When selling I will accept a check from someone on the Forum - BUT if I haven't dealt with them before I will wait for the check to clear (today-no check type is guaranteed & can be easily falsified). I will not send a personal check (or bank transfer) to anyone I do not know. The reason is the check has my bank & checking account number on it, name address, phone and they likely have my email too from correspondence.

Paypal protection didn't help me as they were the ones that messed up; cost me $1200+ so I won't ever use them again

I usually send the parts with a stamped self addressed envelope,so the buyer can check the part first before paying. I have only been burned once,and that from Canadian buyer that never sent the agreed upon shipping charges. I have never worried about anyone on the club forum but I would never do that on a Ebay sale. Ted

Remember that if you are asked to sent payment via the PayPal friends and family option IT IS NOT ELIGIBLE FOR ANY SORT OF BUYER PROTECTION. I learned this the hard way with a scammer from our MTFCA classified ad forum.

To those saying "don't use PP friends as you aren't protected" I have been using PayPal a long time and thanks to the IRS and PayPal if someone sends me goods and services I won't accept the money. It has cost me in the past but saved me many headaches. I'm sure there are others that feel the same.

ClassieGonzalez wrote: ↑

Sat Oct 21, 2023 3:41 am

Thanks for the info. I will use paypal.

And it looks like a BOT has tricked everyone yet again, by reactivating an older thread.

Beware of PayPal..! I had an account for over 15 years with no issues at all.
A couple months ago I got scammed outta $300 on another site so I went through the steps to stop payment which was very frustrating to navigate. But I got the payment stopped after a couple of hours trying to go through all the steps, so, I felt relieved that PayPal stopped the payment and was going to take care of it, two days later they denied my case I had opened, then that evening I got an email from them saying that PayPal had noticed a stop payment on my account and to ensure the seller received the payment they went ahead on my behalf and authorized payment again….I was extremely mad after reading this, so I called my Visa card company and stopped payment through them. It took another hour to get ahold of someone at PayPal through a phone call, I wasn’t nice at all when I finally got a rep on the phone, needless to say I canceled my account everything you read in the policy is geared towards protecting the buyers but I’m telling you right now they definitely shifted everything towards the scammers so my first payment was $300 the second payment PayPal issued without my authorization was for $300 it took a month to get this resolved but as luck would have it I got my $600 back.
So be careful with any form of payment nowadays, I’ve also got a couple of counterfeit postal money orders as well, watch them closely and before you ship the part go to USPS and they have a link to enter the money order number to see if it’s legit.