Charging a FEE on a tax

[rare_hard2find]

How come no one has started a class action lawsuit on eBay for charging a FEE on a tax? This should be illegal, if this fee is for their tax preparations it should be a flat fee and not a percentage fee. 

[alcoforever]

It is normal procedure for all money processors to charge a fee on every bit of money they process, including sales tax.    Mastercard does it, Visa does it, Paypal does it etc. etc.   None have ever been successfully sued for doing so.

Finally, do you remember reading in the ebay user agreement that you waive your right to start a class action suit?   I didn't think so.

[fab_finds4u]

It's not for tax preparation. 

It's  for processing the buyer's payment. They don't make sure all the portions of the buyer's payment gets put into the right pockets for free.

[tobaccocardyahoo]

The likelihood is that there is no class action because

Ebay has the ability under its selling agreement to charge it.

The likelihood is that no lawyer will accept such a class action under a contingency agreement because it is totally legal.

The likelihood is no seller is willing to pay $250k or more to lawyers to launch a lawsuit their lawyer tells them is going to fail.

[monica-sells]

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@rare_hard2find wrote:

How come no one has started a class action lawsuit on eBay for charging a FEE on a tax? This should be illegal, if this fee is for their tax preparations it should be a flat fee and not a percentage fee. 

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Simply because it is not illegal......

If it was, CC Companies would be scofflaws for the past 20 years....

[mtgraves7984]

Isn't it really a fair price for the bookkeeping services to remit all the taxes to all the states/counties for you?

[kenneth686321]

The fee on tax has nothing to do with remitting tax to relevant states tax authorities. 

Ebay has calculated that for every $100 that a buyer spends on this site, (item price + shipping + Tax), Ebay needs $13.25 or 13.25% in order to pay for all the costs associated with running this site and make a fair profit to satisfy its shareholders. How should Ebay charge fees? 13.25% on price + shipping + tax OR 14-5% on Item Price + shipping OR 17-20% on item price alone? Ebay gets the same $13.25 roughly out of the $100 transaction. 

Just like how I tell my buyers who whine about my prices that my prices are what they are because it allows me to cover ebay fees, shipping costs, shipping materials, gas and COGS and make a fair profit to satisfy my  shareholders (Myself) who have invested time and money into this gig.  

BTW  be careful what you wish for.  Ebay might just listen and only charge fees on item price + shipping  BUT raise the fees to 14-15%. Would that make you stop complaining? Probably not.  Sellers would end up paying more fees especially if our buyers have tax exemption certificates or live in a state that does not charge sales tax. Ebay would still get roughly the same amount of fees. 

[soh.maryl]

1. If you read the seller agreement, you will see that you have agreed not to open a suit of any kind.

2. Even  if you believe it to be illegal, there is a whole raft of attorneys at eBay have determined that it is not.

3. It is NOT for tax preparation.  

4. The eBay final value fee for sellers is calculated based on the item price, the shipping cost and the state sales tax paid by the buyer, plus 30 cents.  It's also calculated on any add-ons like a Reserve.  

[brjunco]

ebay selling fees include sales tax * Illegal 

CLASS ACTION LAWSUIT Soon To Follow

[bonjourami]

"ebay selling fees include sales tax * Illegal 

CLASS ACTION LAWSUIT Soon To Follow"

No, not 'illegal', but do let us know how that 'class action lawsuit' turns out. LOL..

[ebooksdiva]

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@brjunco wrote:

ebay selling fees include sales tax * Illegal 

CLASS ACTION LAWSUIT Soon To Follow

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Lol 😂🤣😂🤣🤣😂

[autorepair218]

I never agreed to these new unjust fees. I have been a seller for 20+ years and I may have been forced to agree to policy changes without knowing but i only sell every once in an awhile and recently it is straight robbery. I sold a bike intertube new for .99 cents and I used eBay label for shipping when it was all said and done I had to pay eBay .02 cents for selling my item for free so a total loss. I now cancel the order if it is negative but they charge another fee to cancel. I sold an item today FEES BASED ON 36.16- 36.16x13.25 plus fixed final value fee .40 total 5.19 

item sold 25.00 shipping 8.79 plus tax of 2.37 charge to the buyer not the seller to equal 36.16 

I understand the need to charge higher fees because eBay is processing the payment but to charge a fixed rate on the shipping which is outrageous and I can usually beat eBay big discount using the pirate ship which means the rates are also hiked up. And to charge on tax how is it possible to charge a fee based on the tax that one has to be a direct violation of the law because it is sales tax which is not paid to us so to charge a fee is not acceptable. I guess I’m ready to join a class action or start one but it is directly removing the small legit businesses out of the equation because the only ones that can do free shipping are the bigger businesses I can’t even sell a brand new inter tube or tire from Walmart for half price I have to pay out of pocket to donate it to someone who may need a return which in this case is a massive loss to pay outrageous hiked up shipping costs that only affects the small business.

[fab_finds4u]

The fee on shipping has nothing to do if you or eBay provides the shipping label. The fee on sales tax is because eBay is processing the buyer's payment, which includes sales tax, shipping and item cost. The fee is because eBay is collecting x dollars from the buyer and in turn they are giving the proceeds to the seller. They charge because they don't do it for free.  I already stated that in an earlier reply.  They also pay ADYEN a fee because ADYEN is the one that actually collects the payment for eBay. There is nothing illegal about it. All payment processors charge a fee on the total they collect.

[autorepair218]

It is very unacceptable practice. I would go to prison if I tried to use these same practices. I get that you appreciate eBay and also must be making big time money but I can assure you that nobody else is making anything if they follow the rules that are now being implemented. I’m going to have to get ahold of the state government agency and see what they say. I’m very disappointed to be getting taken advantage of over and over again from these billion dollar companies that claim to be all about being great but in turn we are self employed and getting done up without any kind of recourse except to just stop trying I will just throw anything I will lose money on in the trash before paying eBay to give it away

[slyders_finds]

"I never agreed to these new unjust fees. I have been a seller for 20+ years and I may have been forced to agree..." 

Quickest backpedal ever. 🤣