Paypal forces you now to send G/S payments?

kaplan · Sep 7, 2022

I think this is a new change, I don't think there's option in some circumstances for F/F payments

Just had to send a G/S payment to a friend and it was pretty annoying, could be depending on the account

Anyone with more information?

It's also a good reminder to try out Wise: https://wise.com/

JwRosenthal · Sep 7, 2022

Or venmo. That is how I’ve been sending to friends lately.

Ocean · Sep 7, 2022

If this is true will be very annoying because for good and service you will have to pay fees..

Dan S · Sep 7, 2022

that must be very recent, since I sent a F/F payment a couple of weeks ago.

wsfarrell · Sep 7, 2022

It is recent, as of today, but it's a strong nudge, not a force. Here's the default screen that comes up--it no longer has the Friends and Family option:
-------------------------------------------------------------------------------------------------------------------------------

Screen Shot 2022-09-07 at 9.27.46 AM.jpg

If you click on "Change," you get the option to choose:
-------------------------------------------------------------------------------------------------------------------------------

Screen Shot 2022-09-07 at 9.28.08 AM.jpg

-------------------------------------------------------------------------------------------------------------------------------
Pretty obnoxious in my opinion, though not surprising.

Archer · Sep 7, 2022

wsfarrell
Pretty obnoxious in my opinion, though not surprising.

I agree, not surprising, because...

Ocean
If this is true will be very annoying because for good and service you will have to pay fees..

lehippi · Sep 7, 2022

This has been implemented for awhile now. Just need to make sure you switch to FF before sending.

Dan S · Sep 7, 2022

Yes, it has been that way for a while now, so the thread title seems to be a false alarm.

kaplan · Sep 7, 2022

It's an early warning system - I can send F/F to some people and the option no longer shows up to some

Dan S · Sep 7, 2022

I wonder if it is related to whether the recipient has a business account with PayPal.

kaplan · Sep 7, 2022

Likely, yes

I think it's a 2-3 weeks old change

DaveK · Sep 7, 2022

Someone in Singapore couldn’t F&F me (in Canada), I thought maybe it was a country thing

bgrisso · Sep 7, 2022

Dan S
I wonder if it is related to whether the recipient has a business account with PayPal.

yes. You cannot use F&F anymore for non personal accounts.

watch_my_six · Sep 8, 2022

Ocean
If this is true will be very annoying because for good and service you will have to pay fees..

It is also undesirable, because I believe that for those of us in the U.S., proceeds from G&S transactions will be reported to the IRS as 1099 income. https://www.paypal.com/us/smarthelp...RS-Will-I-receive-a-1099-tax-statement-FAQ729

kaplan · Sep 8, 2022

jspdl
It is also undesirable, because I believe that for those of us in the U.S., proceeds from G&S transactions will be reported to the IRS as 1099 income. https://www.paypal.com/us/smarthelp...RS-Will-I-receive-a-1099-tax-statement-FAQ729

Phew, is this new? I don't have it for 2021

Wise is pretty awesome in this regard too, the same account has both a personal page and a business page, you can't make payments from business bank accounts to personal payment accounts any more, so I guess they adapted to things this way

kaplan · Sep 8, 2022

Pretty scummy that anything above $600 needs to be reported

Let's say a friend sends $1000 to you, and if a normal person sends it, they'll definitely send it as a G/S by mistake - Paypal will take $40 as fees, then if you don't want to be reported to IRS, you need to pay $1040 to have it refunded, as Paypal doesn't refund fees once they get their hands on the money

watch_my_six · Sep 8, 2022

kaplan
Phew, is this new? I don't have it for 2021

Wise is pretty awesome in this regard too, the same account has both a personal page and a business page, you can't make payments from business bank accounts to personal payment accounts any more, so I guess they adapted to things this way

Yes, new-ish (see below) for 2022.

kaplan
Pretty scummy that anything above $600 needs to be reported

Let's say a friend sends $1000 to you, and if a normal person sends it, they'll definitely send it as a G/S by mistake - Paypal will take $40 as fees, then if you don't want to be reported to IRS, you need to pay $1040 to have it refunded, as Paypal doesn't refund fees once they get their hands on the money

Yes, I believe the threshold used to be $20,000, and some are trying to lobby congress for a lower threshold. Either way, the "way out" as I understand it, at least for items that you're not making a profit on, is to provide receipts for those items come tax time...

https://www.thetaxadviser.com/news/2022/mar/new-lower-form-1099-k-threshold-cautions-criticisms.html

kaplan · Sep 8, 2022

jspdl
Yes, new-ish (see below) for 2022.

Yes, I believe the threshold used to be $20,000, and some are trying to lobby congress for a lower threshold. Either way, the "way out" as I understand it, at least for items that you're not making a profit on, is to provide receipts for those items come tax time...

https://www.thetaxadviser.com/news/2022/mar/new-lower-form-1099-k-threshold-cautions-criticisms.html

It's a good read, thank you - next tax season won't be fun for me though 😀

Waltesefalcon · Sep 8, 2022

Don't worry guys the US Government just wants the billionaires to pay their fair share. This won't affect any of us.

In all seriousness this is very annoying and making any kind of hobby like this one much harder to continue without having to start factoring in taxes or making sure we trade less than $600 worth of watches each year.

Syrte · Sep 9, 2022

Maybe Paypal is also feeling the pinch from all of those competing money transfer services and they’re trying to make money everywhere they can.