charged $37 +$37 overdraft fee on a single ebay purchase

[varietymax]

It's 3:18 am and I can't sleep. This is dreadful..I purchased an item on eBay for $2.68 with 38 cent tax..no problem..big drawback is that my bank sees it as 2 separate transactions..I was charged $37 + $37 overdraft fee. 

Prior to that on Sept 23 I noticed that I was negative $30 in the bank..after work I deposited $60 in my bank's ATM..following day checked my internet banking and it showed $30 in the positive..I was happy..didn't think about it until today..checked my bank..it's -$80. I was charged $37 overdraft fee for 3 items...ironically a paypal credit card payment, and then an Ebay purchase, and the tax on the purchase.

I need to call my bank in a few hours, but eBay submitting a single charge as two separate charges is not cool..the ONLY company I know that does this..this resulted in me getting charged two overdraft fees..I hope eBay fixes this soon.

[martoutlet]

one payment to seller,one to ebay.

i'm not a saint,overdrafts had happen to me,but this is on you.

balance your checkbook, man,that's an old saying.

bank,just to pay bills.

debit card,opt out off overdraft.

use just palpal balance.

use paypal balance w/ credit card.

i only use bank if i need to.

good luck on the overdrafts.

i once had an unauthorized that caused 2 checks to bounce.

no problem on the unauthorized.

one overdraft to be returned was like pulling a tooth.

second one was like pulling all the others out.

[computeraidllc]

They are going to two different people. The seller and eBay. You need to better balance out your checkbook.

[varietymax]

Better idea is to change banks to one that allows someone like me with no car and who works second shift to submit her payment in that bank's ATM 24 hours a day, that will apply my cash deposit IMMEDIATELY..predatory banks prey on people who don't perfectly balance their checkbooks, like my current one. 

Anyway, thanks everyone!

[varietymax]

I was able to get 2 out of the 3 overdraft fees credited. Better than nothing..but I was expecting all 3 overdraft fees to be refunded since I deposited cash into the ATM of the bank that I opened my account in ..according to the bank, "same day" means by end of business day..well, that won't work for me since I work second shift.

Time to switch banks to a credit union.

[varietymax]

Makes no sense...what part is ebay's and what part is the seller's? Purchase price was $2.68 with a 38 cent tax. eBay must fix this..only eBay conducts business this way...when I go to Walmart..I am charged one price..purchase price + tax = ONE PRICE..what eBay is doing doesn't make any sense..it's hurting people who for one reason or the other don't perfectly balance their checkbooks.

[readabouthorses]

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@varietymax wrote:

Makes no sense...what part is ebay's and what part is the seller's? Purchase price was $2.68 with a 38 cent tax. eBay must fix this..only eBay conducts business this way...when I go to Walmart..I am charged one price..purchase price + tax = ONE PRICE..what eBay is doing doesn't make any sense..it's hurting people who for one reason or the other don't perfectly balance their checkbooks.

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Because when you go to Walmart you are buying the item from Walmart so you pay them for the item and the sales tax.

When you buy ON eBay you are not buying FROM eBay .. you are buying from an individual so you must pay them for the item and pay eBay for the sales tax.

[myangelandmyprincess]

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@varietymax wrote:

Makes no sense...what part is ebay's and what part is the seller's? Purchase price was $2.68 with a 38 cent tax. eBay must fix this..only eBay conducts business this way...when I go to Walmart..I am charged one price..purchase price + tax = ONE PRICE..what eBay is doing doesn't make any sense..it's hurting people who for one reason or the other don't perfectly balance their checkbooks.

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Because as part of the marketplace facilitator tax laws eBay is responsible for getting and remitting sales tax.  So the seller gets the money for the item and eBay gets the money for the tax 

[varietymax]

Isn't the seller required to file taxes on his/her business if they make a certain amount? Why is eBay collecting tax that the seller is going to take care of in tax season? When I ran an eBay business, I had to file taxes on it..paid what I had to pay. I don't get it at all.

[readabouthorses]

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@varietymax wrote:

Isn't the seller required to file taxes on his/her business if they make a certain amount? Why is eBay collecting tax that the seller is going to take care of in tax season? When I ran an eBay business, I had to file taxes on it..paid what I had to pay. I don't get it at all.

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You are confusing INCOME taxes with SALES tax. They are not the same thing.

[readabouthorses]

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@varietymax wrote:

I was able to get 2 out of the 3 overdraft fees credited. Better than nothing..but I was expecting all 3 overdraft fees to be refunded since I deposited cash into the ATM of the bank that I opened my account in ..according to the bank, "same day" means by end of business day..well, that won't work for me since I work second shift.

Time to switch banks to a credit union.

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While overdraft fees at a credit union might not be as high as a bank, they still will want you to keep your checkbook balanced and know how to not have an overdrawn account.

[varietymax]

Well, eBay is the ONLY company I know of that does this...if this is normal for auction sites, I have to rethink buying from them. Oh well..anyway, thanks!!

[bonjourami]

You are not familiar with the market facilitator state laws that went into effect this year? Its been all over the news and newspapers. States are allowed to collect sales tax on internet purchases now.Its actually a 'transaction' or 'user'tax. Ebay has to collect it,and remit the tax to each state as required by law. So the tax will be a separate charge here..the tax is applicable on all websites that qualify.

[lacemaker3]

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@varietymax wrote:

Isn't the seller required to file taxes on his/her business if they make a certain amount? Why is eBay collecting tax that the seller is going to take care of in tax season? When I ran an eBay business, I had to file taxes on it..paid what I had to pay. I don't get it at all.

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I think you are talking about income taxes here ... this charge is for sales tax, not income tax.

Beginning this year, most states are starting to require Marketplace Facilitators (like eBay) to collect and remit sales tax for all purchases delivered to an address in their state. That's what is being charged here.

Previously, most online sellers were only required to collect sales tax for the state they lived in (but most of them didn't comply with this). All states that have a sales tax also have a use tax, where the buyers were required to pay use tax (same percentage as sales tax) for any purchase (including online purchases) that were not charged sales tax. But most buyers did not comply with this.

Last year, there was a supreme court decision that allowed states to require marketplaces to collect the sales tax instead of putting the burden on remote sellers or state residents, and now 37 states have either already required this, or will be requiring it in the next few months.

[myangelandmyprincess]

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@varietymax wrote:

Well, eBay is the ONLY company I know of that does this...if this is normal for auction sites, I have to rethink buying from them. Oh well..anyway, thanks!!

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Other sites have to collect these taxes too. eBay works differently from some of those sites  in that a seller is paid directly instead the buyer paying eBay then eBay releasing the money to the seller.  Since the way it is currently set up pays the seller directly and the new tax laws make eBay responsible for the taxes it results in payments that need to go to two different places.   This might change with manages payments I don't know