PayPal Friends and Family and the frustration that follows

[M.FREEZE]

Not using PayPal Friends and Family (PPFF) is very clearly stated in The Exchange, yet every day, multiple sellers post knives for sale and list a price that is also accompanied with them saying they accept PPFF.

My question to sellers that go against the rules of Bladeforums and request PPFF -

Why don’t you want to use PayPal Goods and Services?

Is it because you cheap out and don’t want to pay the 3% fee?

Is it because you don’t want to get hit with taxable income if you sell a certain amount of items using PayPal Goods and Services?

On a few occasions now, I’ve contacted a seller and told them that I want to purchase a knife and they have refused to sell when they find out I’ll only purchase the knife using Goods and Services (even if I offer to cover the fees). I go on to explain that if something happens during shipping, or if they’re not a trustworthy individual, I as a buyer using PPFF would have no recourse in the event that something happens to the knife, or if the knife never actually existed and the sale was a scam.

Why wouldn’t a seller want to do everything in their power to assure the buyer that the item they’re buying is legit and give some peace of mind knowing that everything is on the up and up?

It’s extremely risky to buy using PPFF, and I think if a seller insists on PPFF, they should have to ship the knife prior to payment being made. I would have zero issue using PPFF if I had the knife in hand.

 

[Blues]

My question to sellers that go against the rules of Bladeforums and request PPFF -

They are not "rules", they are guidelines and strong recommendations. The site owner has stopped short of mandating certain practices.

That doesn't alleviate the need for members, buyers and sellers, to do their due diligence. We mods can only do so much with the latitude we have.

 

[rizza32]

It’s extremely risky to buy using PPFF, and I think if a seller insists on PPFF, they should have to ship the knife prior to payment being made.

This is madness

 

[91bravo]

I think you answered your own questions in the OP.

 

[M.FREEZE]

This is madness

How is it any more ridiculous than sending $$$ to someone you have never met and assuming they’ll hold their end of the bargain?

 

[rizza32]

How is it any more ridiculous than sending $$$ to someone you have never met and assuming they’ll hold their end of the bargain?

Well there are factors, including reputation, feedback and withstanding in the community. I’m not sending money to someone who just opened an account a week ago.

 

[M.FREEZE]

Well there are factors, including reputation, feedback and withstanding in the community. I’m not sending money to someone who just opened an account a week ago.

I won’t either, that’s why I am asking sellers who prefer PPFF why they prefer it. It’s a red flag to me when someone refuses to use G&S, even if the buyer covers the fees.

 

[el gigantor]

This is madness

Madness?

THIS! IS! SPARTA!

 

[Peter Hartwig]

I won’t either, that’s why I am asking sellers who prefer PPFF why they prefer it. It’s a red flag to me when someone refuses to use G&S, even if the buyer covers the fees.

You gave the most likely answers to why in your OP
Too cheap
Or do to the tax situation
To which I would add, just copying how others make their sales threads
Out right thief, could fall into low probability, since they would not last long.
All you can do under the rule structure, is ask to pay G&S, and if they refuse pass on the item..
I don't worry that much about the honesty of selkers I check out, but still will not use F&F for goods purchases.
At this point I have to really want an item to even bother
I have been buying more on Ebay these days than this forum, which is a bit of a sad situation, but it is what it is.

 

[kreole]

Just don't buy from them like the rest of us

 

[jjg6319]

It is not the seller that pays the fee but the buyer does because the price is increased to includes it.

At times I take a chance and buy using PPFF. It depends on the seller and if they look trustworthy. If it is a knife you really want bad and send a question (about PPGS) then someone else will buy it, especially if it is priced on the low end.

 

[knarfeng]

I won’t either, that’s why I am asking sellers who prefer PPFF why they prefer it. It’s a red flag to me when someone refuses to use G&S, even if the buyer covers the fees.

For G&S, PayPal is required by a federal law passed in 2021 to report sales to the IRS if the total for the tax year reaches over a specific amount.
For sales in 2025 the limit is $2500.
For 2026 the limit will be $600.

Many sellers sell enough knives in a year to reach these limits.

That's not 100% profit, but it is reported as such, and the seller will need to be able to prove to the IRS how much of it is not profit. Apparently, a lot of sellers aren't up to keeping records of how much they paid for a knife. (I don't keep such records either, but then I have no plans to sell any of my knives.) Without records, they would end up having to claim it all as income.

Will PayPal report my sales to the IRS? | PayPal US

IRS new reporting requirement for payments for goods and services lowers the threshold to $5,000 USD for calendar year 2024, $2,500 for calendar year 2025, or $600 for calendar years 2026 and beyond. PayPal will report these transactions.

www.paypal.com

For the Tax Year 2024 (form available in 2025), the Federal Reporting Threshold is More than $5,000 USD in gross sales from goods or services in the calendar year.

For the Tax Year 2025 (form available in 2026), the Federal Reporting Threshold is More than $2,500 USD in gross sales from goods or services in the calendar year.

For the Tax Year 2026 (form available in 2027), the Federal Reporting Threshold is More than $600 USD in gross sales from goods or services in the calendar year.

Here’s some more detail on the 1099-K threshold change:

• This new threshold change is only for payments received for goods and services transactions, so this doesn’t include things like paying your family or friends back using PayPal for dinner, gifts, shared trips, etc.
• This change was introduced by the American Rescue Plan Act of 2021, which amended some sections of the Internal Revenue Code to require payment processors like PayPal to report goods and services transactions paid to customers with $600 USD or more in annual gross sales on Form 1099-K. Previously, a 1099-K was only required when a user received more than $20,000 USD in goods and services transactions and more than 200 goods and services transactions in a calendar year. To implement this new $600 threshold, the IRS is phasing in the requirement by reducing the federal reporting threshold over a 3-year period.
• This reporting is required when the sender identifies the transaction as being for goods and services, even if it was a mistake. Although this transaction is reportable by PayPal, it’s possible that the transaction is not taxable. It’s always best to speak with a tax professional for any specific concerns you may have.