eBay is applying International Fee and State Tax Fee on Same Transaction
I was charged $4.11 on a transaction because the buyer address is in Canada, ok, no problem.
The package is going to a Michigan address and buyer paid the state tax of $15 that I also had to pay a fee of $1.80.
Is this double dipping or is that something that most payment processors do?
8 comments
femmefan1946
·2 years agoYes Managed Payments is much more transparent than the earlier PP/eBay mixture.
Which is likely why some long term sellers are only now realizing that their "profitable side hustle" is a money sucking hobby.
While the international fees are pretty much the same, PP now charges a higher processing fee than Managed Payments.
I guess they were just waiting to be free of the constraints of the old contract.
mam98031
·2 years agoSales tax is completely driven by the SHIP TO address, not the primary address of the buyer.
The International Fee is always driven by the Buyer's Primary address.
slippinjimmy
·2 years agoInternational Fee because the buyer is registered in Canada (and probably using a Canadian credit card for payment).
MI Sales Tax because the order is being shipped to an MI address.
All perfectly normal.
ebeths_eclectic_collectibles
·2 years agoWhich is, of course, why there are a few freight forwarders in tax free Oregon
ten_o_nine
OP2 years ago@slippinjimmy
All perfectly normal.
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So, all payment processors do that?
slippinjimmy
·2 years agoThe International fee is pretty much universal, sales tax has nothing to do with "payment processing" eBay collects sales tax under Marketplace Facilitator laws, they would do so even if they had no involvement in payments whatsoever.
mam98031
·2 years agoPayPal charged the International fee at about the same rate as Ebay does now as our money processor. Just for some reason sellers here didn't realize it, likely because their fees weren't quite as transparent as Ebay has made theirs.
dbfolks166mt
·2 years agoInternational Fee because the buyer is registered in Canada (and probably using a Canadian credit card for payment). Correct but it really doesn't matter whether it was a Canadian card or not it's the fact that the buyer's registered address is in Canada.
MI Sales Tax because the order is being shipped to an MI address.
All perfectly normal.