Ebay Managed Payments - Has anyone heard? Is it real?

[anglinomics]

I got an email yesterday saying I had to sign up by the end of the year. They want your social security number and your bank account information. I called ebay support and they said it's real, but when I called my bank this morning they were skeptical. I do think it's valid, but maybe I've been fooled.

This change of going to managed payments has the proceeds of your sales going to your bank account rather than Paypal. They have also raised there fee structure so there won't be any big savings. They say that through your sales, you will be able to offer google pay, credit cards, and others, where before I was only offering paypal. Paypal is still accepted. The buyer can use paypal among others, but the seller won't have the money go to paypal, but their bank account. It is my thought that they want social security numbers so they can issue 1099 forms to the sellers.

Is this legit? Has anyone else been contacted? I saw a warning article about this that was from the paypal community. That had to do with the seller loosing paypal protection, so there are other negatives.

 

[jaxbraves]

No way would I give them my Social Security number.

 

[Trishlp]

I haven't received anything but I would be skeptical as well if I did. I wouldn't sign up for it either.

 

[David K.]

Agree with Trish! Normally they try to get u by using email system.

 

[anglinomics]

Thanks for the replies. This email might not have been sent to everyone. I'm thinking it only went to sellers. And I think sellerss get a 1099 form if their sales are over $600 per year. That dollar amount is from my experience as a CPA, but I'm 16 years removed from that knowledge. Whether ebay can issue 1099's might be in question. Because you sell to multiple people. So the 1099 limit should apply to individual buyers, and not ebay sales as a whole. I have a help desk ticket open with ebay. For the time being I'm waiting to give out my information. Thanks. Dave

 

[GotMelky]

I've already had to convert over on my account - yes it is real. I've been using it since August and it has good/bad to it - the real issue I have is that the money is no longer available via Paypal when I make sales. They cash you out once a day (or longer if you like) and so it takes a day or two before you actually have the money.

The upside is that they already take out your fees and you can pay for shipping with pending funds.

 

[cjay101]

It’s legit, they’re planning on moving all sellers over by the end of the year. Not a huge fan of that idea, but waiting for my notification to arrive.

 

[anglinomics]

Thanks for all the responses. I have set it up and now I'll probably get a 1099 form in January.

 

[hociman]

I got an email yesterday saying I had to sign up by the end of the year. They want your social security number and your bank account information. I called ebay support and they said it's real, but when I called my bank this morning they were skeptical. I do think it's valid, but maybe I've been fooled.

This change of going to managed payments has the proceeds of your sales going to your bank account rather than Paypal. They have also raised there fee structure so there won't be any big savings. They say that through your sales, you will be able to offer google pay, credit cards, and others, where before I was only offering paypal. Paypal is still accepted. The buyer can use paypal among others, but the seller won't have the money go to paypal, but their bank account. It is my thought that they want social security numbers so they can issue 1099 forms to the sellers.

Is this legit? Has anyone else been contacted? I saw a warning article about this that was from the paypal community. That had to do with the seller loosing paypal protection, so there are other negatives.

I got the message as well. How can they expect sellers to do this. I for one will not provide info on bank accounts. I'd rather sell more on this forum now and take the loss of exposure. Ebay is going backwards, there new sellers page is nuts, very confusing. Don't like it.

 

[cjay101]

I got the message as well. How can they expect sellers to do this. I for one will not provide info on bank accounts. I'd rather sell more on this forum now and take the loss of exposure. Ebay is going backwards, there new sellers page is nuts, very confusing. Don't like it.

PayPal has your bank accounts as well. Once paypal was no longer part of ebay they decided to take it in house. It makes sense to ebay to control it all. I promise you they don’t care what any of us think, just their 100k+ consignors

 

[anglinomics]

I got my first paypal payment this year. They immediately sent requesting my Social Security number. They said if they didn't get it they would limit my abilities on their site. I logged on to paypal and was asked their for my Social Security number. I gave it to them and I know it's about 1099 forms. There is a limit of $600 where they don't have to file a 1099 with the IRS, but some companies send them for all of their transactions.

 

[cmcjr99]

I got my first paypal payment this year. They immediately sent requesting my Social Security number. They said if they didn't get it they would limit my abilities on their site. I logged on to paypal and was asked their for my Social Security number. I gave it to them and I know it's about 1099 forms. There is a limit of $600 where they don't have to file a 1099 with the IRS, but some companies send them for all of their transactions.

wow...i had to provide my ssn to pay pal over 10 years ago (maybe even as long as 15) but i've never received a 1099 as i have never met their minimum thresholds which have been 200 transactions AND $20k per year for since at least 2014...

 

[anglinomics]

wow...i had to provide my ssn to pay pal over 10 years ago (maybe even as long as 15) but i've never received a 1099 as i have never met their minimum thresholds which have been 200 transactions AND $20k per year for since at least 2014...

I'm confident that the $600 is accurate. I have research that on the IRS website in the last few weeks. I have heard what your saying also.

 

[pltcards]

Form 1099-K​

​

If you’ve sold at least $20,000 in gross merchandise value and exceeded 200 transactions for goods and services* on eBay this year, you will be receiving a tax Form 1099-K for all your 2019 sales transactions including relevant internet sales tax.


I found this on Ebay rules site,

 

[anglinomics]

I got a 1099K from eBay this year for around $1,100.00. I don't know what the 2019 means.

 

[pltcards]

Yeah not sure. I just cut and pasted. You guys are making me look. I have sold quite a bit this year and just wanted to make sure where I stand.

 

[anglinomics]

No worries. I believe what you found. There just a discrepancy. I filed 1099 forms with the IRS as part of my job. I haven't worked since 2003, but I went to verify if the $600 was still the threshold, and I found that it was. What I would think is either Ebay didn't file 1099s in the past using that policy or I never hit $600 before last year.

 

[anglinomics]

I found the same information that you quoted is on the IRS web-site. I'm not sure what this exception means thought.
NOTE: The minimum reporting thresholds of greater than $20,000 and more than 200 transactions apply only to payments settled through a third-party network; there is no threshold for payment card transactions

. I think I was looking at the threshold for 1099-misc rather than 1099K.

 

[anglinomics]

wow...i had to provide my ssn to pay pal over 10 years ago (maybe even as long as 15) but i've never received a 1099 as i have never met their minimum thresholds which have been 200 transactions AND $20k per year for since at least 2014...

Thanks for the correction. As I read the thread that is the second time I have made the same mistake. But regardless of the rules, Paypal has my social security number and I have received one payment for goods this year and it was $6.49.