PayPal friends vs goods
 

Hey guys,
I’m currently considering a deal for a significant chunk of change. I’ve noticed the pattern of Net54 members using PayPal f&f putting the buyer at total risk. I’ve gotten used to this as I see generally people trust each other in this community and for good reason. The buyer on my potential deal has more posts over the years than I, but I have been much more active lately and like to think I’ve established myself. However he is pretty set on using goods & services and is willing to pay the fees. This used to be the way I did every deal until PayPal was used against me as the seller because the buyer was a weasel and changed his mind and tried to get a partial refund back (not a Net54 member). Should I have any reason for concern selling via PayPal goods and services? Thanks for any feedback.
Thanks
Peter


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On the seller's side of things, the tax implications is the biggest difference. Friends and family payments don't need to be reported as income, but good and services payments will subject you to a 1099 if the money you made is over a certain threshold. $600 I believe.

On the buyer's end, they are protected by PayPal (and their credit card company) if the package does not arrive, for whatever reason.

Ah yes good ole taxes. I do claim my sales but do like to make my own decision to do so versus being sent a schedule K/1099-K or whatever it’s called. Good reminder. Thank you for the quick response.


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Depends on who the buyer is and if you are getting a fair price after taxes.

I've been burned in the past by a long time trusted member, (on another forum). Lesson learned, I never use F&F for any transaction anymore.

Packages can get lost or damaged, disputes about condition can happen. If a seller is afraid of buyers who choose to protect themselves, thats not a seller I would trust anyway.

As previously mentioned I thought the same way until operating on this forum. I was surprised at the amount of people who only do friends and family, but it seems to be mostly tax and profit related. I have a good friend who sold a Mike trout auto rookie via PayPal goods. If I remember right, the buyer decided to return it but returned a different card, yet the tracking showed returned and PayPal awarded the return so the seller was out a trout and $12k! How is the seller protected in that scenario?


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Theres no way for a seller to be protected in a situation like that. Its one word against another. Unfortunately, those situations do happen.

Should PayPal reimburse your friend $12K on his word that the wrong card was sent back? Thats a scumbag buyer, PayPal didn't do anything wrong.

Beyond scumbag; that buyer is a criminal committing five-figure fraud (presumably) through the mail.

This is exactly why I just prefer friends and family. There's fraud risk either way (to the seller one way, to the buyer the other way), so the net gain is 0. I don't deal with people I don't know by at least reputation for any sizable amounts.

Couldn't agree more. Plus I have had one of those only pay with G&S screw me twice. I rarely sell on here but in my listing I put if paying with G&S buyer was to pay fees. Buyer agreed and then never paid the fees. I over looked it and then the same buyer done it a second time. I was pissed but over looked it again. Unfortunately they have never bought another item from me so I could refund their payment and tell then what a cheap POS they are.:)