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Butlerkid

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Help!

I am helping Randy's widow sell a bunch of stuff. I anticipate that several items will be over $1,000. I haven't used PayPal in several years.

What is the current fee that PayPal will deduct from the buyer's payment to Melodee?

Will the payments get reported to the IRS?

Any specifics I should include in the For Sale offer?

What else should I advise Melodee about?

Thanks!
 
Joined
Dec 3, 2012
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Sandpoint, Idaho
I think all the fees are described here. It looks like the fee is right around 3.5%, but I’d check that.

https://www.paypal.com/us/webapps/mpp/merchant-fees

Under the IRC Section 6050W, PayPal is required to report to the IRS the total payment volume received by US account holders whose payments exceed both of these levels in a calendar year:

  • US$20,000 in gross payment volume from sales of goods or services in a single year
  • 200 separate payments for goods or services in the same year

IRC Section 6050W applies to all payment processors, including PayPal. Our goal is to help PayPal sellers understand and comply with the requirements.
 
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PayPal fees are on a sliding scale. Smaller transactions incur a larger percentage. Nominally, for photographic equipment, 3% is typical. Their website does not make it easy to evaluate their fee structure precisely, but actual data from my own account over the last two years of payments received via PayPal (excluding eBay transactions, which are treated differently) reveals:
  • Payment amounts less than $100 incur between 3.5% and 4.5% fees
  • Between $100 and $400, the fees are 3.0% to 3.1%
  • Above $400, the percentage drops slightly below 3.0%, becoming more favorable as the transaction amount increases
  • I suspect that it never goes below 2.9%
I'm really glad that you are helping Randy's wife with this task. I know you'll do it well. Please LMK if there's anything I can do to assist in the effort.
 

Butlerkid

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Offer such a high price for the entire collection that she no longer has to administer selling it in drips and drabs to a lot of people. :ROFLMAO:
Actually there are quite a few things that I wonder if it is worth trying to sell them. Boxing and shipping costs would cost more than the items! That includes incidentals but also large, heavy and used camera bags. Those I may suggest that she just visit her local camera stores and see if she can get something for them.
 
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Actually there are quite a few things that I wonder if it is worth trying to sell them. Boxing and shipping costs would cost more than the items! That includes incidentals but also large, heavy and used camera bags. Those I may suggest that she just visit her local camera stores and see if she can get something for them.
Or donating to a school, for a tax deduction?
 

Butlerkid

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Just ran into this:

PayPal puts money on hold to help ensure the platform is safe to use for both buyers and sellers. Your PayPal money might be on hold if you're a new seller or your account has been inactive. To help release funds faster, add tracking information to your orders or print a shipping label via PayPal. Sep 24, 2021
 
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Just ran into this:

PayPal puts money on hold to help ensure the platform is safe to use for both buyers and sellers. Your PayPal money might be on hold if you're a new seller or your account has been inactive. To help release funds faster, add tracking information to your orders or print a shipping label via PayPal. Sep 24, 2021
That's only for new users. Once you're established, funds are immediately available.
 

Butlerkid

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That's only for new users. Once you're established, funds are immediately available.
Read their announcement. It is also for accounts that have been inactive............... ;) Probably like mine as I haven't used it in quite a while.
 
Joined
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Read their announcement. It is also for accounts that have been inactive............... ;) Probably like mine as I haven't used it in quite a while.
We can have everyone on the cafe send you a dollar to "prime the pump."
 

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