The reason I decided to make this post was a video that I cam across on youtube. Obviously this is just his side of the story, but reading the comments section made think about potential reasons. I know it’s common in the collectibles hobby to want F&F or for the buyer to pay for the fees. It’s probably more common for people to evade the fees entirely. Considering I paid taxes on all my previous collecting years and I have plans to file taxes for all my ebay/pokemon dealings this year, I don’t know what the big fuss is about paying 2.9%.
The other interesting coincidence is that ebay is parting ways from their Payapl deals. There is the new system that is coming to ebay where the money will go directly to your bank. I’m not sure these new crackdowns are in response to Paypal losing this large amount of income. I know many people on here actually pay taxes, have a CPA or don’t make a huge fuss about paypal fees. I’d love to hear all of your opinions on this matter.
Fnf is all about saving the ~29%+ most times. Many many people deal in low enough volume to avoid the reporting and just dont pay any taxes but even for people who do pay taxes any amount recieved fnf doesn’t hit the 1099 and doesn’t get reported as income. So if someone is giving you a 2.9% discount to pay fnf with no protection for you they are often pocketing another ~30% for themselves which is pretty crazy lol. Some people could accept fnf and report that as income though too. Everyone is different.
I cant believe the amount of volume some people apparently do as fnf and get away with it though. Anecdotally hearing about it from some people and then just straight up hearing people quote their actual numbers it can be insane. It would not surprise me if PayPal were to crack down on it more over time and they definitely do it to some extent as I’ve heard of permanent bans being handed out. When they have your social security number on file I cant imagine it would be as easy of a ban to surpass like an ebay one where someone just creates a new account.
PayPal used to be really strict about this back in 2012 or so and it’s why I try to avoid F&F as much as I possibly can. A friend of mine sold a car for £2k back then using F&F and his PayPal account was locked for it.
I’ve never understood how so many people use F&F for such large transactions in the Pokémon community but have never had any issues with it.
I feel like he is leaving something out, but either way yeah most companies suck now. They don’t care, they literally couldn’t care less. If you find one that does, you stick with them.
I have heard they review the “notes” on friends and family payments. So if you leave a note “this is for X card” it is more likely to get flagged or reviewed.