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Why PP friends and family?

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crouse

crouse

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Why do so many sellers want to use paypal friends and family? With regular paypal, you have some protection as opposed to none at all with F&F. Plus, you can always specify that the buyer pays the fees. Plus, it is cheating paypal. Call me old fashioned, but if you choose to use their system, you should be willing to play by their rules. If you think their fees are too high, then don't use them. I am guilty of having used F&F for a transaction, but I regret it. So, why use F&F?
 
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Probably like you said, to skirt the fees and to take away the buyer's protection. PayPal generally sides with the buyer in most disputes so if they don't have the option maybe shady sellers will lose less money.
 
When I sell in BT, I always use the payment for "goods" instead of the friends / family.

It's true that you do lose that 3% to the fee, but when you are shipping (as I always am when selling) then you can print your postage right from home, directly through PayPal. This enables you to easily track packages through PayPal, plus the shipping cost online is slightly less than the cost of walking into the Post Office. It basically balances out.

Seems like a win win to me.
 
Why PP friends and family?

because it saves the seller and buyer the fee. when dealing with people on bartertown it is a pretty safe transaction and generally seller protection is unnecessary.

paypal charges the fee to cover the protection side. if it is not needed money can be sent for free. thats the way i look at it...
 
A couple times people asked for F&F, but I paid with G&S +3%. The seller still shipped the goods so I reckon it was acceptable.

This is not to say I've never done F&F because I have, mostly, and will in the future.
 
"paypal charges the fee to cover the protection side" I'm thinking they charge the fee to make money, otherwise no business.
 
I'm typically willing to cover the 3% fee if the seller has an issue or stated he'd rather take an MO or something like that. I like the convenience and the seller protection is a big bonus.
 
Well if your running a business and selling Goods and Services, operating cost are figured in on what your selling so that there is profit. Three percent transaction fees, earned income tax and an array of other things. If your running a business, earnings are documented in your PP account and need to be added to your tax forums as income and taxes paid for said income.

If I'm selling to Friends and Family and I am not running a business I can use PP for the money transfer for free. I do not have to declare it as income because it's not, I'm not operating a business, just have something that friends or family want to take off my hands, taxes have been paid on it.
 
I prefer to use it both as a seller and a buyer. One additional protection that it offers that I like is shipping protection. If I buy postage via the PP transaction then the resposibility is on the buyer to have the correct address in PP and I don't have the liability of having to pay shipping out of my pocket if the address is wrong. If I'm buying I'll usually pay the fees if the seller requests FF. I will sometimes pay FF with a seller I've developed a trust with and I know the seller prefers it.
 
4-2-7 said:
Well if your running a business and selling Goods and Services, operating cost are figured in on what your selling so that there is profit. Three percent transaction fees, earned income tax and an array of other things. If your running a business, earnings are documented in your PP account and need to be added to your tax forums as income and taxes paid for said income.

If I'm selling to Friends and Family and I am not running a business I can use PP for the money transfer for free. I do not have to declare it as income because it's not, I'm not operating a business, just have something that friends or family want to take off my hands, taxes have been paid on it.
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I'm quite certain that the IRS doesn't give two hoots about which method you use. If it is taxable, it is. If it's not taxable, it isn't. Choosing one method or the other doesn't change that.
 
electronjohn said:
If I sell something on BT I consider it a sale to a friend...thus F&F. And, since I'm a standup guy, should there be a problem I will make it good toot sweet...thus no need for buyer protection.
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But it's still a sale.
Plus, how is your buyer supposed to *know* that you're a standup guy? Not saying you aren't, and I certainly feel better about my dealings here than anywhere else, but still...
 
markshan said:
I'm quite certain that the IRS doesn't give two hoots about which method you use. If it is taxable, it is. If it's not taxable, it isn't. Choosing one method or the other doesn't change that.
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However, if you sell used items that you bought for personal use for less than you paid for them, the money received is not taxable and the IRS doesn't want to know about it.
 
Seems to be a little underlying indignation with the F&F option, let's not miss the fact that PP offers the option
so if you or someone else choses it well its their choice.
I have used both in varying situations.
 
vinyl1 said:
However, if you sell used items that you bought for personal use for less than you paid for them, the money received is not taxable and the IRS doesn't want to know about it.
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Yes. That is what I read when I researched the issue as well.
 
moewillis said:
Why PP friends and family?

because it saves the seller and buyer the fee. when dealing with people on bartertown it is a pretty safe transaction and generally seller protection is unnecessary.

paypal charges the fee to cover the protection side. if it is not needed money can be sent for free. thats the way i look at it...
Click to expand...

Its still cheating Paypal by not paying the fees for the service they provide.
I like Audiokarma and bartertown, but - if you don't believe in fees, I don't believe in shopping from you.
 
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