Haven't been on ebay in a while... Need some assistance on Selling

[jamvanunlimited]

So like the title says, I haven't sold anything on ebay in a year or so.  Used to be a big seller back in the day, but my life has gotten busy so I don't really mess with it anymore.  Was wanting to list a few things I have around the house, nothing serious, probably less then $200 worth.  I have a paypal account still, but I never have given my social security (even though they have asked for it in the past) on it nor do I ever want to.  But now I am seeing that you cannot use your balance to pay for ebay shipping payments (or buy anything) unless you supply a social security, is that what I reading right?  And if you buy something, you cant get your refund back unless you provide it.  Is this correct?

Can someone shed some light on this please and any other ebay/paypal information I am missing?

Thanks

[misfitfun]

paypal asks for seller ssn to generate a 1099 at tax time.They do not require it of buyers.

As a seller who has not sold in a while you will be subject to selling limits and payment holds

http://pages.ebay.com/help/sell/sellinglimits.html

https://www.ebay.com/help/selling/getting-paid/getting-paid-items-youve-sold/pending-payments?id=415...

[jamvanunlimited]

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@misfitfun wrote:

paypal asks for seller ssn to generate a 1099 at tax time.They do not require it of buyers.

As a seller who has not sold in a while you will be subject to selling limits and payment holds

http://pages.ebay.com/help/sell/sellinglimits.html

https://www.ebay.com/help/selling/getting-paid/getting-paid-items-youve-sold/pending-payments?id=415...

---

I understand that and I will have no reason to receive a 1099 anyway for less then $200.  But I read of a buyer saying he bought an item, and sent the item back for refund and paypal wouldn't give him his refund unless he provided a social security number.  I just want to make sure that is not a normal situation is all.  From what I see, you can only deposit the money into your bank account from your paypal money received from a sale, not use it to pay your ebay fees/shipping directly from paypal.  I just want to make sure that is correct if I choose not to provide them with my social security going forward with the little bit of junk I have to sell.

[berserkerplanet]

You are correct on at least part of that.

Unless you verify yourself with PayPal, you can use your PayPal balance to pay for anything - it can only be transferred to your bank account. If verified, they create a separate proxy account that can be used same as before, with funds transferring there.

I just had to go through this. Didn't want to ("they'll get my PII when they pry it from my cold dead hands...."), but want to continue (not) selling (anything) on eBay, I do use my PayPal balance all over the web, and it was path of least resistance for now.

I had already given them most of the info years ago, but they are requiring it (of everybody) again. Since I have a PO Box as my PayPal account address, and also as my Calif drivers license address I couldn't do it online. Surprisingly pleasant, chatty 30 min call with a PayPal rep in Ireland took care of it (2pm PT on Sunday afternoon)

I do not know about the receiving refunds part, or what happens there if not verified. I'd assume same thing. It would go into PP balance and have to be transferred to bank account. That theory conflicts with your buyer's tale.

Still unclear if this is prompted by an FTC, or other government ("PayPal you aren't a bank") type thing, or if it is some sort of PayPal internal reorganization, I was told by the rep it is for all of North America, including Canada.


Text of last reminder email I received before caving:
────────────────────────────────────────────────────────
TotallyAwesomeDude, you can choose to keep sending, spending, and making automatic payments with your balance.

Your money, your choice.
When you receive money into your PayPal account, you get to choose what to do with it next.

Confirm your info to keep money in your PayPal balance.
If you'd like to keep a PayPal balance, please take a minute to confirm your info here.

By April 1st, the funds you keep in your PayPal balance will be held in a separate account, which will be opened and linked automatically to your personal PayPal account after you confirm your identity.

Here are some of the great ways to use money
in your PayPal balance:
• Send money to family and friends in the US for free**
• Securely shop and pay online
• Pay for bills and subscriptions with ease
• Get access to cool, new features like Money Pools, Goals and more

You have choices.
Don't want to keep money in your PayPal balance?
Instant Transfer funds to a bank account using an eligible debit card linked to your PayPal account. A 1% fee applies, up to $10. Funds typically arrive in 30 minutes or less*. Timing will vary by bank. Fees apply.
Standard Transfer funds to a linked bank account at no additional cost. Funds arrive in 1-3 days. **Free

Make sure any other automatic payments continue without interruption
If you choose not to keep a PayPal balance and you have other automatic payments in place, we'll charge the alternate payment method linked to your account — like a card or bank account — instead of your balance.
If you don't have another payment method linked to your PayPal account, you can easily add one. Click Link a Bank or Card.

[jamvanunlimited]

---

@berserkerplanet wrote:

You are correct on at least part of that.

Unless you verify yourself with PayPal, you can use your PayPal balance to pay for anything - it can only be transferred to your bank account. If verified, they create a separate proxy account that can be used same as before, with funds transferring there.

I just had to go through this. Didn't want to ("they'll get my PII when they pry it from my cold dead hands...."), but want to continue (not) selling (anything) on eBay, I do use my PayPal balance all over the web, and it was path of least resistance for now.

I had already given them most of the info years ago, but they are requiring it (of everybody) again. Since I have a PO Box as my PayPal account address, and also as my Calif drivers license address I couldn't do it online. Surprisingly pleasant, chatty 30 min call with a PayPal rep in Ireland took care of it (2pm PT on Sunday afternoon)

I do not know about the receiving refunds part, or what happens there if not verified. I'd assume same thing. It would go into PP balance and have to be transferred to bank account. That theory conflicts with your buyer's tale.

Still unclear if this is prompted by an FTC, or other government ("PayPal you aren't a bank") type thing, or if it is some sort of PayPal internal reorganization, I was told by the rep it is for all of North America, including Canada.


Text of last reminder email I received before caving:
────────────────────────────────────────────────────────
TotallyAwesomeDude, you can choose to keep sending, spending, and making automatic payments with your balance.

Your money, your choice.
When you receive money into your PayPal account, you get to choose what to do with it next.

Confirm your info to keep money in your PayPal balance.
If you'd like to keep a PayPal balance, please take a minute to confirm your info here.

By April 1st, the funds you keep in your PayPal balance will be held in a separate account, which will be opened and linked automatically to your personal PayPal account after you confirm your identity.

Here are some of the great ways to use money
in your PayPal balance:
• Send money to family and friends in the US for free**
• Securely shop and pay online
• Pay for bills and subscriptions with ease
• Get access to cool, new features like Money Pools, Goals and more

You have choices.
Don't want to keep money in your PayPal balance?
Instant Transfer funds to a bank account using an eligible debit card linked to your PayPal account. A 1% fee applies, up to $10. Funds typically arrive in 30 minutes or less*. Timing will vary by bank. Fees apply.
Standard Transfer funds to a linked bank account at no additional cost. Funds arrive in 1-3 days. **Free

Make sure any other automatic payments continue without interruption
If you choose not to keep a PayPal balance and you have other automatic payments in place, we'll charge the alternate payment method linked to your account — like a card or bank account — instead of your balance.
If you don't have another payment method linked to your PayPal account, you can easily add one. Click Link a Bank or Card.

---

Great response, I appreciate it.  So from what you are saying, if I sell any of these items, my only option is to transfer the money to my bank account and pay for the shipping at the post office is what it sounds like.  I will no longer be able to buy shipping through ebay with paypal, nor will I be able to buy anything using my paypal balance period unless I verify it correct? 

I just want to makes sure that is clear going forward as I will just have to adjust to going back to the post office to pay for shipping.  Not really the biggest downer for as little amount of things as I have to sell.  

Basically it sounds like my days of buying things on ebay with a paypal are done and I probably will only sell a few things here and there, nothing serious.  

[mam98031]

PP has no way of knowing at the time you start selling if you will meet the threshold for a 1099 or you won't.  So they require the SSN in the beginning.  If they don't get it now, what if you do hit the thresholds and then PP is trying to chase you down for that SSN because they need to meet their requirements with the IRS.  What then?  What if you continued to refuse to supply your SSN?

You do have a choice in the matter.  You may choose not to sell on Ebay.  But if you choose that you do want to sell on Ebay, then you are going to have to give PP your SSN.

[jamvanunlimited]

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@mam98031 wrote:

PP has no way of knowing at the time you start selling if you will meet the threshold for a 1099 or you won't.  So they require the SSN in the beginning.  If they don't get it now, what if you do hit the thresholds and then PP is trying to chase you down for that SSN because they need to meet their requirements with the IRS.  What then?  What if you continued to refuse to supply your SSN?

You do have a choice in the matter.  You may choose not to sell on Ebay.  But if you choose that you do want to sell on Ebay, then you are going to have to give PP your SSN.

---

Thanks for your input, Paypal just would do what they have always done, if you sell a certain amount (generally a half way point to the 200/20K requirement), they begin to ask for your social security as in the past and if you don't provide them with it then they lock your account at that point because you are getting close to that point.  Now limiting you to not being able to even spend the money in your paypal account seems a little ridiculous, thats where I have the problem.  

[mam98031]

---

@jamvanunlimited wrote:

---

@mam98031 wrote:

PP has no way of knowing at the time you start selling if you will meet the threshold for a 1099 or you won't.  So they require the SSN in the beginning.  If they don't get it now, what if you do hit the thresholds and then PP is trying to chase you down for that SSN because they need to meet their requirements with the IRS.  What then?  What if you continued to refuse to supply your SSN?

You do have a choice in the matter.  You may choose not to sell on Ebay.  But if you choose that you do want to sell on Ebay, then you are going to have to give PP your SSN.

---

Thanks for your input, Paypal just would do what they have always done, if you sell a certain amount (generally a half way point to the 200/20K requirement), they begin to ask for your social security as in the past and if you don't provide them with it then they lock your account at that point because you are getting close to that point.  Now limiting you to not being able to even spend the money in your paypal account seems a little ridiculous, thats where I have the problem.  

---

That may be the way you want it to work, but it is not how it works.

[berserkerplanet]

Yes, if you sell items, the money goes into your PayPal account, and unless you PayPal verify, the only way to get at it is to transfer it to your bank.

And yes, you can no longer use your PayPal balance to pay for eBay labels.

However, you could change the default PayPal automatic payment method to your bank account, or credit card and the eBay shipping label automatic payments would draw from there. (or if you read the last paragraph in the PayPal email text I posted above, it looks like PayPal will just roll over to the alternate payment method - bank account or credit card - for automatic payments like eBay labels on their own)

Alternatively, you could use PayPal shipping for the shipping for your eBay sales (labels cost the same Commercial Base prices as eBay labels), and I think that should draw from your balance, really not sure about that - not discussed anywhere, but maybe it falls under the same "automatic payments to anyone, including PayPal shipping can't draw from the balance).

You can print PayPal labels automatically straight from the PayPal eBay sales transaction, or manually via PayPal Shipnow https://www.paypal.com/ShipNow


Also, because you are considered a new seller there will be payment holds (21 day?) on all your sales for a while. Even after those holds stop, there may still be short holds unless you verify with PayPal. Only an issue if you are in a hand to mouth cash flow position.

[femmefan1946]

@berserkerplanet 

I was told by the rep it is for all of North America, including Canada.

Never heard of it in Canada. Perhaps for sellers receiving more than $20,000 in payments?

 I recently resurrected an old ID for a special product line and was not asked for anything by Paypal.

Canada is very very cautious about Social Insurance Numbers.  We are told never to give our SIN to anyone but the government, our employer, and our bank (taxes basically).

I have not been asked for my SIN in years, and it would be pretty useless since it has only my number on it.

I do have a BC Identity Card which does not have my SIN and of course a passport. I've used both of those for airport security.  And my Health Card but the only ones who ask for that are the girls at my doctor and when I have tests done at the hospital, so they know what to bill the BC Health. 

And I have bought a shipping label through Paypal within the past two weeks on this account. (Mostly I use stamps.)

EBay might be trying to move the OP into Managed Payments. Which from all accounts would be a Very Bad Idea.

Wouldn't be the first time an eBay customer rep was wrong.

[berserkerplanet]

PayPal rep, not eBay.

Nothing to do with eBay at all or managed payments.

Has nothing to do with being a seller or amounts more than $20,000 - it is ALL PayPal users.

PayPal balances - monies from selling, gifts from friends, refunds, transfers from a bank account, whatever - will not be able to be used for anything except transfer to a bank account unless the account holder does the verification, beginning April 1, 2019 I believe. If verified, some sort of fake account will be constructed which PayPal will automatically transfer PayPal balance money to, and can be used just as before like the PayPal balance was used.


Will have to poke around and see about the North America aspect. If Canada is not included, it really does sound like it was a US regulator move for some reason. If it was Canada too you would have gotten multiple emails from PayPal warning about the upcoming change and suggesting you comply.

[this*old*attic]

I pay my fees and shipping through PayPal so that’s not true.

If it makes you feel better, they’ve had my social for 20 years and I’ve never had an issue. I love their debit card. I pretty much treat them like a bank.

[berserkerplanet]

>>I pay my fees and shipping through PayPal so that’s not true.

The changes have not kicked in yet. To not have been aware of this you must either have a PayPal Business account, or if not, been recently identity verified by PayPal, or not paying attention. If a business account holder, or recently identity verified PayPal might not have sent any notification emails, but this news has been in the forums, on Ecommercebytes, and in multiple PayPal announcement and reminder emails for months.

PayPal User Aagreement changes go into effect 3/29/19, and the PayPal balance changes apply to Personal PayPal Accounts.

https://www.paypal.com/us/webapps/mpp/ua/upcoming-policies-full

If a Personal Account holder does not jump through the identity verification hoops before 3/29/19, they will not be able to use their PayPal balance for anything - not eBay labels, not online purchases, not paying eBay fees. Nothing but transfer to a bank.

That doesn't mean that eBay fees, labels, or other online purchases or payments can't be made with PayPal using a credit card or bank as the funding source, just that the PayPal balance can not be used for purchases or payments.

It looks like it is a US only change forced by the Consumer Financial Protection Bureau, and the PayPal rep I spoke to was wrong when he said it affected all North American PayPal customers - looks like on US customers, and only those with non-identity verified PayPal Personal accounts are affected.

(I was verified years ago, but that isn't good enough according to PayPal - not recent enough and had to re-verify.)

[vlf7777]

So, will PayPal automatically transfer proceeds from e-Bay sales into a linked bank account and not allow a PayPal balance to be carried if a person is not fully verified?  Another batch of e-mails was sent out by PayPal as I just received my notification this morning.

[berserkerplanet]

No, if not PayPal verified, I think the funds will sit in the PayPal balance, but you can't use it for anything. All you can do is manually initiate a transfer to your linked bank account. (pretty sure they aren't going to do automatic transfers - that would get messy, many banks limit numbers of transfers in a time period, etc)

I can find no clear information on that scenario, but everything I have read, points to that conclusion.

If verified, they will open a phantom holding account (a PayPal Cash account) linked to your PayPal account, automatically transfer eBay sale payments and other PayPal balance funds to it, and that account can be used the same way as the PayPal balance used to be used - for purchases, paying for eBay labels, etc. Or you can manually transfer the funds from that holding account to your bank account.