Final value fees on sales tax
I understand that since eBay processes the payment there's a cost of 2.9% for the CC etc.
but why does eBay charge final value fees on sales tax..?
15% in my case on sales tax? I'm not getting the sales tax!
it just seems extremely unethical.
can someone help me with this..
6 comments
monroe67
·3 years ago"I understand that since eBay processes the payment there's a cost of 2.9% for the CC etc.
but why does eBay charge final value fees on sales tax..?"
I'm not going to address the "illegality" or "unethical"-ness of eBay's fees on sales taxes.
Personally, I think it's one hell of a bargain. eBay has to keep track of e-v-e-r-y sales tax percentage throughout the 45 states with state-wide sales taxes, calculate them, keep them all that money in separate little buckets, and then send that money to Albany, or Sacramento, or Austin, or Des Moines accurately and on each states' schedules. There is no way I could ever do that for my own sales and retain my current level of sanity. (Already a little questionable . . . .)
But I have a question about this statement that I see occasionally here in the forum: "a cost of 2.9% for the CC . . . ."
In this post, it is stated as the OP's accepted belief, as a truth of his/her understanding of eBay's procedures.
For my most recent eBay purchase, I did not use a credit card ("CC").
I used the debit card that is attached to my checking account.
The debit card is not a CC. It's the opposite of a credit card.
The money came out of my checking account balance directly. The purchase did not put me deeper into debt.
OP, do you think eBay charged that seller "a cost of 2.9% for the CC . . . . " ??
maxine*j
·3 years agoAll payment processors charge their fee on the total amount charged to the buyer -- for the merchandise, sundry charges and surcharges, handling, shipping, sales tax. This is the standard and universal practice, and it has been ever since the invention of the credit card.
Every time you use your own credit card for a purchase, the merchant you buy from pays the fee based on the total you paid in the transaction, including any sales tax you paid. If you believe this is "very unethical," be sure that you do not participate in the practice: Cut up your credit cards and use only cash, checks, or money orders for all your purchases.
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redmodelt
·3 years agoThe other option would be for you to receive the sales tax payment then submit it to the 1000s of taxing authorities and know the correct amount to charge for those 1000 of taxing authorities. eBay does that for a fee, that in most cases amounts to very little out of the total you pay when they charge you the FVF.
rosszonebricks
·3 years agoThis is stated up front by eBay and is not new. Would I prefer fees to be less? Sure, wouldn't we all?
https://www.ebay.com/help/selling/fees-credits-invoices/selling-fees?id=4822
Relevant bit:
Final value fees
We charge one final value fee when your item sells, and you don't have to worry about third-party payment processing fees. This fee is calculated as a percentage of the total amount of the sale, plus $0.30 per order.
The total amount of the sale includes the item price, any handling charges, any shipping costs collected from the buyer (some exceptions apply), sales tax, and any other applicable fees.
reallynicestamps
·3 years agoYou are not being charged on sales tax.
You are being charged a fee for processing your customer's entire payment through your account.
The sales tax was paid as part of that payment.
EBay sends the tax to the appropriate government as part of their processing service.
Then eBay charges you fees for processing.
monster-deals
·3 years agoGetting charged a fee on money that never ever touches your hand and you will never see EVER? Money that you don't charge but ebay does?
If ebay would just say we charge you this fee to collect and remit use tax on your sales for about 3,000+ counties in the USA alone, so you don't have to....well it would go a long way in getting rid of questions like this.
Sketchy?
Sure smells like it.
A good trade?
It is for me.
Dirt poor communication by a multi billion dollar corporation?
DING DING DING