Venmo

[12345jamesstamps]

Just a heads up...

Venmo is the same as eBay and Pay Pal where as after $600. sold  IF...if it changes this year from the $20,000. mark in California to $600...there will be a 1099K. For those states with a very sad limit look out.

[robbie31415]

That has no impact.

The only one receiving money on venmo is eBay.

[itscalledapostingid]

The change only impacts buyers.

It gives buyers another payment option so I see this as a positive thing.

[kensgiftshop]

The seller isn't paid by Venmo, so it won't make any difference.

[12345jamesstamps]

A seller giving a buyer money....the buyer gets a 1099K depending on the laws of his state of how much you have to declare not as a sale but a transfer of funds to this buyer.

Some sellers do refunds that can be high...some sellers sell inexpensive items(I don't know what you sell and if you sell anything.)...Cars are sold on eBay as well as gold.

Just so you know since you don't know...if the $20,000. limit changes to $600. in California. or even $5000. funds from one to another using Venmo the one receiving those funds will get a 1099K.

But this is so old news.

[robbie31415]

I don't think you understand how this all works.

Ebay changing what they accept for payment has no impact on the seller.

If a seller opts to accept alternative payment such as venmo for something like Local Pickup. Then yes they would fall under Venmos reporting requirement.

But this change has nothing to do with that. It's eBay that accepts venmo. The only one who would have to report is eBay.

Sellers still get paid via Managed Payments.

[kensgiftshop]

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@12345jamesstamps wrote:

A seller giving a buyer money....the buyer gets a 1099K depending on the laws of his state of how much you have to declare not as a sale but a transfer of funds to this buyer.

Some sellers do refunds that can be high...some sellers sell inexpensive items(I don't know what you sell and if you sell anything.)...Cars are sold on eBay as well as gold.

Just so you know since you don't know...if the $20,000. limit changes to $600. in California. or even $5000. funds from one to another using Venmo the one receiving those funds will get a 1099K.

But this is so old news.

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Sellers are not paid through Venmo so it won't have anything to do with getting a 1099K from them.

When the buyer pays, they pay Ebay, then Ebay pays the seller.

[12345jamesstamps]

This is rather new territory...receiving funds from Pay Pal and Venmo...which may not be the same.

So you are saying Venmo is a credit card...I don't use it so I don't know...all credit cards usually go to Pay Pal and then to eBay for payments. So is Venmo a credit card? 

     There is Pay Pal where one person can send money to another person...has nothing to do with eBay.

Currently after $20,000. in California it has to be declared by the receiver.

I didn't think Venmo is a credit card but a form of sending cash like Cash App.

Some thinking Venmo they can get away with the 1099K which I was talking about. 

Which they can't.

And a seller returning a refund to a WHAT...credit card or Venmo ?

The refund seems complicated where it wouldn't happen in 3 business days. LOL.

[12345jamesstamps]

How do refunds work?...back to Venmo or ?

[steady2304]

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 @12345jamesstamps 
No different than if a buyer used PayPal or a credit card to fund the transaction. The refund would go to the buyers Venmo account and then Venmo would either credit it back to whatever funding source the buyer used or keep it in the buyers Venmo account. Venmo is actually owned by PayPal.

[kensgiftshop]

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@12345jamesstamps wrote:

How do refunds work?...back to Venmo or ?

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Same as credit/debit cards and Pay Pal now.

As a seller, there won't be any difference, you won't know how a buyer pays.

[slippinjimmy]

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@12345jamesstamps wrote:

This is rather new territory...receiving funds from Pay Pal and Venmo...which may not be the same.

So you are saying Venmo is a credit card...I don't use it so I don't know...all credit cards usually go to Pay Pal and then to eBay for payments. So is Venmo a credit card? 

     There is Pay Pal where one person can send money to another person...has nothing to do with eBay.

Currently after $20,000. in California it has to be declared by the receiver.

I didn't think Venmo is a credit card but a form of sending cash like Cash App.

Some thinking Venmo they can get away with the 1099K which I was talking about. 

Which they can't.

And a seller returning a refund to a WHAT...credit card or Venmo ?

The refund seems complicated where it wouldn't happen in 3 business days. LOL.

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Venmo is a Digital Wallet, no different than ApplePay, GPay, AliPay, PayPal and dozens of other (probably dozens of dozens).

Venmo, operated by PayPal since 2013 is very popular in the US (90 million registered users. PayPal over 400 Million). Internationally it's not that well know.

FYI - On eBay Venmo can only be used by US residents

Another interesting  fact, when PayPal took on Venmo it was part of eBay's acquisition of Braintree (a French Company). Braintree ended up in PayPal hands when the 2015 spin off took place, it is still an active division of PayPal. Venmo on eBay is sort of like a lost child returning home.

Another thing of note, there was speculation when Managed Payments started that eBay might completely dump PayPal when the 5 year contract expired. Looks like that speculation was off the mark.

[mam98031]

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@12345jamesstamps wrote:

A seller giving a buyer money....the buyer gets a 1099K depending on the laws of his state of how much you have to declare not as a sale but a transfer of funds to this buyer.

Some sellers do refunds that can be high...some sellers sell inexpensive items(I don't know what you sell and if you sell anything.)...Cars are sold on eBay as well as gold.

Just so you know since you don't know...if the $20,000. limit changes to $600. in California. or even $5000. funds from one to another using Venmo the one receiving those funds will get a 1099K.

But this is so old news.

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I see your point.  My bet is that Venmo and Ebay got this all worked out before they started accepting Venmo.  Otherwise we'd have the same problems with several of the other methods of payments that are accepted on Ebay.  We will be fine

[mam98031]

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@12345jamesstamps wrote:

How do refunds work?...back to Venmo or ?

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Refunds ALWAYS work the same way.  A refund is processed back to the funding source originally used by the buyer, there is no exception to that in which I'm aware of.

[dbfolks166mt]

     I am in Virginia and we have had a state 1099-K reporting threshold since 2020. While I do receive 1099-K's from Venmo, PayPal and several other third party financial processors it has nothing to do with any funds that have been processed through eBay. The 1099-K's I receive are related to funding transfers for sales on other venues where the buyer sent me the money directly. 

     The fact that eBay is going to accept Venmo will, as others mentioned, be transparent to the seller. Those funds along with any other funds processed through eBay will be part of the 1099-K you receive from eBay.