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payouts have been temporarily placed on hold

Just got off the phone after getting a email from ebay that my payments are on hold for 5 days while they review my account. After speaking to a number of folks I finally was able to speak to someone in the states that works in the accounts department and found out that is the new ebay policy and came with managed payments. Once a year sellers are going to have their accounts reviewed and pay out held, until ebay completes a review that may take up to 5 days. During that time you can list, buy and sell just not get payments. I quote"there are no triggers, or nothing wrong with your account, this is just the new standard to safe guard our buyers and sellers on ebay).
So in order to meet our shipping requirements we have to "loan" Ebay cash while we pay employees to pack and ship out of pocket until they complete what is going to be a regular occurance once a year.
Well one thing that they got right is that its a new Ebay...............

Message 1 of 28
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payouts have been temporarily placed on hold

Ebay doesnt have your cash, Adyen does.



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“Never pick a fight with an ugly person. They don’t have anything to lose.” ~Robin Williams
Message 2 of 28
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payouts have been temporarily placed on hold


@410hammerii wrote:

Just got off the phone after getting a email from ebay that my payments are on hold for 5 days while they review my account. After speaking to a number of folks I finally was able to speak to someone in the states that works in the accounts department and found out that is the new ebay policy and came with managed payments. Once a year sellers are going to have their accounts reviewed and pay out held, until ebay completes a review that may take up to 5 days. During that time you can list, buy and sell just not get payments. I quote"there are no triggers, or nothing wrong with your account, this is just the new standard to safe guard our buyers and sellers on ebay).
So in order to meet our shipping requirements we have to "loan" Ebay cash while we pay employees to pack and ship out of pocket until they complete what is going to be a regular occurance once a year.
Well one thing that they got right is that its a new Ebay...............


Due to the new 1099K reporting trigger for sales over $600, eBay is requesting :

 

1. Your full social security number or EIN #.

2. Accurate verifiable bank account information to run managed payments through.

 

Once you complete 1 and 2 that are based on above you should be fine.

Message 3 of 28
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payouts have been temporarily placed on hold

thank you for the reply, but we have been in managed payments for over a year now (16 months) and updated our EIN (and confirmed) over 2 months ago. In my talks with ebay today none of this has any bearing on these holds for performance reviews and is now part of managed payments for all sellers. Also we have no issues with vero's (knock on wood) with our last being 3 years ago on a item. Our feedback is solid (99.4%) and ebay hasn't had to step in to settle a buyer issue/dispute in over ten years. (That was a damaged over seas sale using global shipping that ebay finally handled and returned funds to us)

Message 4 of 28
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payouts have been temporarily placed on hold

@410hammerii 

 

We had security reviews when we used PayPal.  But when PP did this they froze ONE transaction while they did they random security check.

 

I have asked many times WHY Ebay does this and WHY do they have to hold ALL funds for  3-5 days.  But I've never gotten an answer.  I respect security checks and I support Ebay doing them.  But how they are going about it is like no other site does and I can't think of a valid reason why they need to do this.

 

But because they do, we have to deal with it.


mam98031  •  Volunteer Community Member
Message 5 of 28
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payouts have been temporarily placed on hold

I'm not being snotty with my question here. I really want to know

 

Why do you have to deal with it? is there truly no place else most sellers could go to get this company out of our lives. This company that has done nothing but make our lives hard for so many years now. Is it fear? It used to be good (MANY years ago) but it absolutely is not now. Are so many just afraid of change?

 

I'm guessing ebay is making money from the held funds of  their sellers?? How does it even supposedly protect a seller of buyer?

 

Thanks

Message 6 of 28
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payouts have been temporarily placed on hold

Once again, Ayden has your money, not eBay.  The holds are more for their safety than buyers or sellers. You are following their rules.

Message 7 of 28
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payouts have been temporarily placed on hold


@skydragonslair wrote:

I'm not being snotty with my question here. I really want to know

 

Why do you have to deal with it? is there truly no place else most sellers could go to get this company out of our lives. This company that has done nothing but make our lives hard for so many years now. Is it fear? It used to be good (MANY years ago) but it absolutely is not now. Are so many just afraid of change?

 

I'm guessing ebay is making money from the held funds of  their sellers?? How does it even supposedly protect a seller of buyer?

 

Thanks


@skydragonslair 

 

When Ebay makes changes they are always bigger to sellers such as yourself, most are called Casual Sellers.  Likely because you only come around to sell every now and again and while some of those changes feel ridiculous to you, they are very important to other sellers.

 

That is not to say that some change seem to annoy the majority of us.  That always happens and not just on this site.  But your answer is simple.  If you don't like the rules of this site, find one that better suits your needs.

 

I personally deal with it because this site works very well for me.  I don't have too many problems with MP.  I do weekly deposits since I started and every one has arrived on time, without issue.  That is likely the result for most sellers on Ebay.  

 

I personally sell on multiple sites as do many sellers here, so clearly I'm not in "fear" as you suggest.

 

Certainly clearly we see some sellers having issues on these threads.  Each problem is important and needs to be fixed or better understood, whichever is the right solution for the issue at hand.

 

"Are so many just afraid of change?"  The answer is simple, YES.  Many of the issues that some sellers have with MP is simply it is a big change and they don't like it.  Not that they have given MP a chance, they don't like it for the start, even if they don't take the time to learn a darn thing about the program.

 

MP is not perfect.  It is far from it.  It will grow and evolve as time moves on.  It has already started to when they sped up the processing time a couple of months ago.  I think we will see more positive changes in the coming year now that they have the majority of the onboarding of over 19 Million sellers out of the way.

 

Ebay is not making interest on held funds.  They have said it many many times and it is on the Seller Fee policy pages too.  


mam98031  •  Volunteer Community Member
Message 8 of 28
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payouts have been temporarily placed on hold

Hi mam,

 

I think maybe you misunderstood my comment and maybe I misunderstood yours when you said something we have to just deal with. I though you meant you didn't particularly want to stay here but felt kind of trapped here. That is where my question came from.

I didn't mean 'fear' because you or anyone else is like chicken. Just that most people are hesitant to change when something is not what you want because we tend to be hesitant of the unknown. Myself included I guess.

I know looking at my site would not show much of a seller and you would probably wonder why I come in and question anything. And you would have a good point but I used to sell with a friend and actually have over 3000 positive feedback of my own from them and do presently also sell with another. Not a lot. Basically trying to make enough for some medical bills.  I have always taken positive feedback very seriously. I know there are people who don't and it wouldn't bother me one bit to not have them around either.

I really was wondering why a different site is not suitable but you said you also sell on others.

 

I have seen a  lot of comments from sellers saying if someone objects to the $600.00 a year they must be tax dodgers etc.. I would like to give another view if you don't mind. My circumstance and what I know is that or similar of millions of people who now sell on here.

 

As I said, I sold for years and I paid taxes on what I sold. No problem. I paid them then and when I owned a B&M and when I was an employee. Like we all do or should.

 

But my life changed when I was injured at work years ago, have been royally screwed over and am now on disability. I will stress not by choice. Never ever one bit of it I wanted. Now what little I get goes primarily to medical bills for something I should not have had to pay one penny on. And it isn't enough so yes, I try to make more. Actually work to earn it. 

 

So now to why many of us are badly affected by this that has nothing to do with paying taxes.

 

If I sell $601.00 in a year, I lose health insurance. So for me to claim that means I would pay thousands upon thousands of dollars more just for insurance. I am well aware others are having to pay exorbitant amounts as well and if I knew I could make the difference on a regular basis I gladly would. But I can't and they count it as gross instead of net so that makes it worse.   I so badly need dental work now and I have to admit I was hoping to be able to make enough to go but no, now I can't even try.

 

I know other people kind of in the same boat. Need just a little more for needs as opposed to wants but if they make $1,000.00 anywhere, it will cost them an extra $13,000.00 in insurance. Just an example. There are so many people literally forced to live as paupers only because of insurance and can not physically work to make up the difference. The way our government has set it up for the insurance companies. Both parties. Can't even try because they are not going to care if I only made $601.00 dollars a year and no where near enough to cover what it would cost me.

 

I guess I wish people would understand how badly this will hurt so many. They aren't just deadbeats. There will always be people who feel they shouldn't have to pay their fair share but I think most of us would gladly pay taxes if that were the only thing affected. Unfortunately it isn't. Held hostage by the insurance companies. The least they could do is make it on net profit instead of gross.

 

I am not saying this as a oh poor me thing. I just want others to understand that not everyone who can't claim a sell is a tax dodger expecting everyone else to support them and yet they badly need a little extra and want to work.

I am not referring to someone who makes nineteen thousand a year etc. and then whines if they have to start paying tax on it.

 

But I will also say that when I say pay a fair share, we know that does not happen.

 

Anyway, I truly meant no disrespect to you for selling on here and I definitely was not trying to call you out for it. I thought you meant you weren't really happy selling here and I was wondering about other sites because on a personal level I haven't been real happy with them for quite some time.

 

Thanks again and I do wish you many sells.

 

 

Message 9 of 28
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payouts have been temporarily placed on hold

@skydragonslair 

 

I'll do a little research on that in the next few days.  The numbers you state don't sound right to me but that doesn't mean it isn't true, it only means it doesn't sound right to me that if you earn $50 a month [600 /12] that you would lose some benefits.

 

One point I'd like to make just to be really clear here.  IRS has NO MINIMUM threshold on when you are suppose to claim income earned on your Federal tax returns.  While the threshold on a form 1099K is $600, that is NOT the minimum threshold to be claiming income.  We are suppose to claim ALL our income on our Federal tax returns.

 

With that said, if you are selling things from around your own home, it is highly likely that with or without a 1099K, the money you received for these sales is not likely taxable.  If you get a 1099K you would have to claim it, but it would NOT increase your income taxes or your adjusted gross income.

 

Some of what you said is exactly why some sellers were really upset about losing PayPal before the threshold dropped to $600 for 1099K as they used PP to hide money from state and federal agencies that controlled some benefits they were receiving.  Of course as of this year all that changes.

 

We all hit hard times.  Some more serious than others but it happens to most of us.  Because not everyone shares as much as you have on the threads doesn't mean they don't have their own issues happening in their lives.  So never assume.

 

Anyway I will try to do more research in the next few days and try to figure out what federal benefit would have such a low threshold for money you earn to turn off benefits.  I know for a fact SS benefits aren't like that for retirees.  


mam98031  •  Volunteer Community Member
Message 10 of 28
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payouts have been temporarily placed on hold

Hi mam,

 

Thank you.

I would like to say, I know everyone has hard times. It really was not meant as an oh poor us thing.  Truly not.

As far as the numbers, the 601.00 was just an example since that is the threshold.  I think I could make a little more than that but not much and it really is a killer that they count gross instead of net.  I am on disability not retired and I can only tell you it is not by choice. NEVER would have been my pick. Anyway, they monitor everything. I also understand that can be a fine line as far as what "just a little more" can mean. As in why shouldn't you be taxed just because you need only a "little" more. But again, that isn't what I mean. It isn't about paying taxes.

 

It isn't that I or many others think we shouldn't pay taxes because we are in these positions. Not at all. It's the insurance. And I know that doesn't only affect people on disability etc. I know people who have worked all their lives but either still need a little more or just want to keep working. But they can't either because with just a part time job their insurance would increase by more than $13,000.00 dollars in addition to what they already pay. It's ridiculous. And I think that is what I wish people understood instead of saying good riddance to the riff-raff. It's just wrong the way people are being held hostage by insurance.  Forced to be paupers and forced to not work even if you can.  And that is absolutely something that affects every one of us.

 

Most of us want to work. Be productive. Or at least feel a little like it. Earn money and yes even pay taxes although taxation is not fairly spread out but that is a different subject.

 

I have to admit I didn't know there was such a divide between "casual sellers" and the rest. But for me and others (not all of course) we can't even do this like we would like to. So maybe that does make us more casual sellers. I don't know really.

 

I am not a very good "speaker" so I probably don't explain things well for which I apologize and to be honest it does get to be rather painful so I know I tend to shorten things up.  but I never was a good conveyor of what I am trying to say.

 

Anyway, Thank You for any help and I mean that very sincerely.

Message 11 of 28
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payouts have been temporarily placed on hold

Hi mam,

 

It's me again. I don't mean to hound you but I thought of maybe a better way to explain.

 

For us, whatever would be on our Federal or State returns makes no difference. For myself and again many others, I wouldn't owe anything regardless unless I could sell considerably more or higher end items.

 

Lets say I had $5000.00 in sells. Deduct costs of say $4,000.00 and that would leave $1,000.00 that could be subject to tax. ( I know you know all this. Trying to keep it straight for me) So pay a portion if you owe as a result of that and it's done.

 

But not for us.

 

If we have $5,000.00 in sells that is what they count. No deductions even for the cost of the item. None. They say you made $5,000.00 in profit.  And you just lost your insurance because there is no way you can pay it especially with something you didn't ever have. ( The $4,000.00)

 

That same concept applies to anyone that uses the "marketplace" for their insurance. From what I have been told.

 

Have Gross sells of $5,000.00? Well, now you pay $10,000.00 in the cost of your insurance. Would not make much sense would it?

 

The numbers are just arbitrary. Of course they would change depending on a persons circumstances but what does not change is the fact they use Gross sales not Net which is what we would pay on for Fed and State.

 

I am well aware everyone is paying exorbitant amounts for insurance which again is a different subject but it is so wrong. I also know there are people now paying for me to go to a doctor who can't afford to go themselves because after paying their exorbitant premiums, they can't afford the deductible. Just Wrong. But one thing too is that if a person happens to be unable to work, there is no way to make it up.

 

I hope that explained it better. It has never made sense to me because of course there are costs associated with what is sold. But we are not allowed to offset them.

 

I just see a lot of bad things happening because of this anyway. People who have tried to use selling as a way to not have to get governmental help will now be forced to. Not people who will always take advantage but people who really want to contribute, work, but forced to stay in a category that yes, means they have to stay hidden. That money will no longer be in the economy and in all likelihood they would not have owed any tax or minimally a portion of it. Not every penny and more. All because of insurance.

 

You know how speeders get fined etc.? Well, we need speeders because if there weren't speeders traffic would be at a standstill. That might be a poor analogy.

Message 12 of 28
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payouts have been temporarily placed on hold

@skydragonslair 

 

"If we have $5,000.00 in sells that is what they count. No deductions even for the cost of the item. None. They say you made $5,000.00 in profit.  And you just lost your insurance because there is no way you can pay it especially with something you didn't ever have. ( The $4,000.00)"

Who is THEY?  Certainly NOT IRS.

 

Who has control of your insurance?  What is the plan called?  Is it private, state or federal?

 

No I'm even more confused, that didn't clear anything up for me.  So let me know the name of your insurance company and whether it is private, state or federal?

 


mam98031  •  Volunteer Community Member
Message 13 of 28
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payouts have been temporarily placed on hold

I’m going to guess he’s saying insurance through Marketplace, where your insurance is based on your job income, tax bracket, earnings filed on taxes etc. So, if what he says is true and it reports $5,000 earned income, without deducting for the cost of the original item sold, then that could easily put someone in a much higher tax bracket, skewing their actual earned income/profit for the year on their taxes. That could put your insurance that you pay (if you get tax credit help through Marketplace) from $40.00 a month to $540.00 a month. I just (weeks ago) started selling again on eBay, so I haven’t had to report earnings from them during a tax season yet. So, I don’t know if what they say is accurate to how eBay income is handled when filing taxes, but if it is, that’s definitely an issue.

Message 14 of 28
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payouts have been temporarily placed on hold

@he_njse_bp8szpv24k 

 

The other poster was talking about losing their insurance because Ebay was holding their funds and therefore they had no money to pay their bill.  They were not talking about Business Insurance.

 

To my knowledge Ebay has no such program.

 

It is best to FIRST learn what a 1099K is for and the requirements of what IRS requires on that form before jumping to conclusions or assumptions.

 

First this is a IRS form created about 2012.  The original threshold for when Marketplaces that process their seller's monies and Payment Processors on the INTERNET was $20,000 and/or 200 transactions.  This form was DESIGNED by IRS to represent GROSS RECEIPTS.

 

Gross Receipts equal the total amount of MONEY received BEFORE any kind of deduction is make.  So NO refunds of any kind or expenses are deducted from the Gross Receipts.  When you enter it onto your Schedule C of your IRS Federal tax return, you will see all kinds of places to start deducting for expenses, costs and refunds.  To then arrive at your Net Income to which you would be taxed on.

 

You are NOT taxed on the total amount of money a 1099K states unless you do your taxes incorrectly.

 

" I just (weeks ago) started selling again on eBay, so I haven’t had to report earnings from them during a tax season yet. So, I don’t know if what they say is accurate..."  Who is THEY??

 

Seems you have a bit of homework to do.  Too many assumptions that will only cost you money.

 

https://www.irs.gov/businesses/understanding-your-form-1099-k


mam98031  •  Volunteer Community Member
Message 15 of 28
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