New Paypal Updates, F&F Payments To Business Accounts

Heirphoto

Heirphoto

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I got notice today that Paypal will update its terms of service effective July 8, 2022 in that US business accounts cannot receive Friends & Family payments, and regular US Paypal accounts (personal) will not be able to send Friends & Family to US business accounts.

This will affect small businesses who like to accept F&F payments in hopes of reducing the reportable income going on their 1099 for 2022.

I suspect we will see tightening of the rules for US personal accounts as more people conduct try to conduct sales via F&F.
 
Heirphoto said:
I got notice today that Paypal will update its terms of service effective July 8, 2022 in that US business accounts cannot receive Friends & Family payments, and regular US Paypal accounts (personal) will not be able to send Friends & Family to US business accounts.

This will affect small businesses who like to accept F&F payments in hopes of reducing the reportable income going on their 1099 for 2022.

I suspect we will see tightening of the rules for US personal accounts as more people conduct try to conduct sales via F&F.
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Thanks for notice tho I never have used F/F. Hard to keep up with rules.
 
JohnWE said:
Waiting for the inevitable complaints from people using a private companies resources and refusing to pay for them…

and undoubtedly thinking that they’re the victim…
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When you use Facebook, Twitter, PayPal, Venmo, Cashapp, or whatever, don’t forget that they collect all your personal and transaction data - and that’s where the real profit is at. Same way gas stations don’t make any profit from selling gas but instead make the bulk of their profits from the convenience store. If you think you’re just using PayPal for free out of the goodness of their hearts, think again.
 
luethge said:
I’m surprised it took this long for them to start cracking down.
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Yes indeed - judging by the new normal in the exchange, F&F is the rule - or you are being asked to pay $5.00 or $10.00 extra, which most often goes well beyond the G&S fees. :mad:
 
I’ve purchased three custom knives this year…the first two were from a maker who took G&S…he said he declared everything (what a unique concept)…the third was paid for by check to a maker I was very familiar with…

I will not be paying for anything with F&F!…I also won’t send a check to an unknown - unless the knife is sent to me first…this may end up saving me money…
 
Thomas Linton said:
"This will affect small businesses who like to accept F&F payments in hopes of reducing the reportable income going on their 1099 for 2022." The most common form of tax evasion for small businesses is failure to report income .
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Exactly. I should have used the word "hide reportable income" instead of "reduce reduce income". The kind of person who declares a "business" so they can buy small lots from a distributor at wholesale, get an EIN so that income reports separately from their personal income (SS#) so they can declare a business loss whenever possible and who although a "business", favor F&F payments. Plenty of them out there.
 
I have in the past bought cigars from big online sellers that asked for F&F. I always wondered why they were asking for that :)
 
K80Shooter said:
Just my opinion and as we all know everyone has one.

I for one will not purchase anything online without Paypal G&S. I would have gotten scammed last month if I had not used it.

If I can't pay that way, do I really need it? No.
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Agree with this. No way I’m risking paying someone with basically no accountability on the internet because they don’t want to pay taxes. They are free to make whatever decisions they want and so am I.
 
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