How can a cash transaction be done in a way that eBay has proof of payment?

[gretschwhtfalcon]

Just thought about this. If not using PayPal in arranging payment for a pick-up only item, how can it be worked? I've read somewhere here that a buyer said ebay continues to send out notices of item not being paid for. Perhaps put another way - how does eBay prefer that local pick-up only item be paid for? 

[a_c_green]

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@gretschwhtfalcon wrote:

Just thought about this. If not using PayPal in arranging payment for a pick-up only item, how can it be worked? I've read somewhere here that a buyer said ebay continues to send out notices of item not being paid for. 

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You can take cash for a Local Pickup item. After that, you go into your Sold Items page and mark it as Payment Received, via the pulldown menu in the Actions column.

[gretschwhtfalcon]

Then, once I mark it as payment received (from a cash transaction), am I correct that eBay then receives notice of the payment and will no longer keep sending invoices to the buyer indicating that payment has not yet been received? And then, I assume ebay gets their FVF same as if the item is done through PayPal? 

In terms of the seller being assessed the usual fee, it appears there is no advantage to having a buyer pay cash vs. PayPal (other than avoiding the PayPal fees). Right? 

[slippinjimmy]

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@gretschwhtfalcon wrote:

Just thought about this. If not using PayPal in arranging payment for a pick-up only item, how can it be worked? I've read somewhere here that a buyer said ebay continues to send out notices of item not being paid for. Perhaps put another way - how does eBay prefer that local pick-up only item be paid for? 

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Why do you think you need to provide eBay proof of payment?

eBay only sends the buyer a notice to pay if the seller has failed to mark the transaction as paid.

Buyer picks up and pays in cash

Seller marks the transaction as paid

No "proof" required.

[a_c_green]

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@gretschwhtfalcon wrote:

Then, once I mark it as payment received (from a cash transaction), am I correct that eBay then receives notice of the payment and will no longer keep sending invoices to the buyer indicating that payment has not yet been received? 

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Right. 

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@gretschwhtfalcon wrote:

And then, I assume ebay gets their FVF same as if the item is done through PayPal?  

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Right. Their Final Value Fee is being charged to you, not the buyer. It's not affected by how you get paid by the buyer, or whether you get paid at all, which is why it's important to make sure that failed sales get closed out either by cancellation or a completed Unpaid Item process, so that your FVFs get credited back to you.

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In terms of the seller being assessed the usual fee, it appears there is no advantage to having a buyer pay cash vs. PayPal (other than avoiding the PayPal fees). Right? 

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There's no difference there, no. The Final Value Fee is based on the amount charged to the buyer, not how he paid it.

[gretschwhtfalcon]

In trying to arrange a pick up date, time, and location with my buyer, I've not yet marked the item as paid. Consequently, I'm told that eBay continues to daily send out unpaid notices to him. 

[a_c_green]

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@gretschwhtfalcon wrote:

In trying to arrange a pick up date, time, and location with my buyer, I've not yet marked the item as paid. Consequently, I'm told that eBay continues to daily send out unpaid notices to him. 

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Well, yeah. He hasn't paid, right?  You could consider those payment notices being sent to him as an incentive for him to get off his butt and get over to your place to pay you for the item and take it away.

[slippinjimmy]

Daily????

I doubt that (although anything is possible). Not such a bad thing maybe as it might stimulate your buyer to actually pick up and pay.

[gretschwhtfalcon]

Not his fault at all....I'm not that local to him that he can easily come here. His preference - which I've agreed to as part of the terms of his offer - is to meet at a location more central to both of us. We're over 2 hours driving distance away from each other. We just haven't finalized a location yet and convenient date. 

[pburn]

Well, then, he's going to keep getting the notices.

P.S. DO NOT mark the item paid until it actually is just because he's bothered that he keeps getting notices.

[gretschwhtfalcon]

Another question....the invoice that was sent to him includes sales tax. If we do a cash transaction, how is the tax handled? Assuming he gives me the total amount of the sale price minus the sales tax and then eBay assesses that separately from our transaction (?)

[pburn]

If he resides in a state that imposes sales tax on items, I guess it would be your legal obligation to collect it and account for it when you file your tax documents.

That's a good question, though, and one I don't recall seeing discussed since the imposition of sales tax on the site. Maybe someone else will have a better answer, like @a_c_green or @slippinjimmy, perhaps?

[slippinjimmy]

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@pburn wrote:

If he resides in a state that imposes sales tax on items, I guess it would be your legal obligation to collect it and account for it when you file your tax documents.

That's a good question, though, and one I don't recall seeing discussed since the imposition of sales tax on the site. Maybe someone else will have a better answer, like @a_c_green or @slippinjimmy, perhaps?

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Regarding Sales Tax

In most situations where the buyer picks up an item and pays for it in person there would be no tax charged or collected.

UNLESS

The seller is already registered and is collecting Sales Tax within their own state in which case they would need to charge whatever their local rate is and treat it like any other in-State sale.

Nowadays on eBay with the marketplace facilitator rules it's the location of the buyer that determines the rate and if taxes are charged. On an in-person transaction it's the location of the seller that matters. A local pick-up order for a a transaction that originates from an online marketplace muddies the water somewhat.

[gretschwhtfalcon]

Buyer is in NJ and I'm in PA. Sales tax amount is listed on the invoice. So...what would you advise doing (in the case of this specific cash transaction)? 

[slippinjimmy]

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@gretschwhtfalcon wrote:

Buyer is in NJ and I'm in PA. Sales tax amount is listed on the invoice. So...what would you advise doing (in the case of this specific cash transaction)? 

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Are you registered  with the PA Department of Revenue to collect Sales Tax?

If yes and buyer picks up and pays cash you should collect and report PA sales tax.

If no then do not collect Sales Tax.

The buyer in theory would report the transaction on their State tax return and pay the appropriate NJ Use Tax. Of course almost nobody ever reports and thus we have interstate sales tax collection and marketplace facilitator regulations.