Friends and Family option on PayPal

[haris]

Some sellers on this forum will ask you to use the 'Friends and Family' option on PayPal to pay for parts, BEWARE. Unless you know and trust the person. Here is what PayPal says:
Not for Business Transactions:
The "Friends and Family" option is designed for personal transactions between people who know each other. It's not meant for buying and selling goods and services, especially from unknown vendors. Buyer Protection is void when you use this option.

Just pass on the deal no matter how good it is. DO NOT encourage SCAMMERS on this forum.

[sebastianroher]

Bottom line, if you're so greedy that you use F&F to save 2.9% with a seller you don't know you kinda deserve whatever happens at that point.

[930cabman]

I will not use F&F unless I know the party. If I really want the item, I simply add a couple %

[917_Langheck]

Doesn't the non-f&f fee protect the seller too? Why should the onus be on the buyer to pay the entire % as often dictated by the seller? Split the cost of insurance and both be happy should something go sideways.

I do pay f&f if the seller is a known quantity.

[phunt]

Buyer shouldn’t pay any fees. Why would they???? Seller wants to sell and make the money. Cost of doing business. There are even actual venders wanting buyer to pay for the privilege of buying something from them. Just keep tipping right????

[speednme1]

Don’t be cheap. Just pay the 2.9% if you're unsure. I’ve done it numerous times.

[techweenie]

Last time I used F & F, Paypal took 2.9%.

[Louis Paras]

Originally Posted by techweenie

Last time I used F & F, Paypal took 2.9%.

Thats right you get no protection and Pay Pal still charges the buyer 2.9% for using FF.

[stownsen914]

You can skip the 2.9% if the source of funds is your bank account.

Treat f&f like cash. Would you send cash to someone on the internet and hope they send you the goods?

[techweenie]

Originally Posted by stownsen914

You can skip the 2.9% if the source of funds is your bank account.

Treat f&f like cash. Would you send cash to someone on the internet and hope they send you the goods?

I had 2.9% charged to me from a bank account-linked Paypal account. I think this is a new policy.

[uscarrera]

PayPal and EBay are terrible for us enthusiasts with cars or parts to sell or buy. A large amount of fraud sellers and buyers and the fees are crazy when you add buyer fees, seller fees, sales tax, etc. I only use the PCA Mart, Pelican and Rennlist then I always try to have a phone conversation with the other party if all seems legit and we can agree of form of payment I precede if not I keep looking. If you use Facebook Marketplace ask to hold sellers or buyers first born until deal goes through, Wild West over.there ��
Rich

[Bucketlist]

Got banned from Facebook Marketplace a few years ago because I tried to hassle the scammers, I think they (FB) are the scammers.

[jac1976]

Originally Posted by sebastianroher

Bottom line, if you're so greedy that you use F&F to save 2.9% with a seller you don't know you kinda deserve whatever happens at that point.

You got this backward, hoss.

[911 tweaks]

I’m surprised no one has said this… The biggest reason people want F&F is if the seller receive payment as goods and services, seller will get a W9 from PayPal at the end of the year and you have to claim that as income and pay income tax on it… To me that’s the big negative of accepting PayPal NOT as friends and family… Do your due diligence, talk to the person get warm and fuzzies is what I do…

[PCA7GGR]

As a well known seller (260 914-6GT engine lids in over 20 yrs) I give buyers the option.

One buyer’s bank, who received his GT lid by insured FedEx ground, mistakenly refunded his payment. I sent PayPal proof of delivery. They investigated and stated that it could take “up to 75 days” to reverse the refund. Guess how long it to for the funds to get back to my account?

Best part, PayPal wanted me to clear the negative balance of my PayPal account.

[Mark Salvetti]

Originally Posted by 911 tweaks

I’m surprised no one has said this… The biggest reason people want F&F is if the seller receive payment as goods and services, seller will get a W9 from PayPal at the end of the year and you have to claim that as income and pay income tax on it… To me that’s the big negative of accepting PayPal NOT as friends and family… Do your due diligence, talk to the person get warm and fuzzies is what I do…

Technically you only have to pay tax if you made a profit on the sale. It's a pain, but I expect one would have to keep records to show what the part cost new vs what it sold for. Most things would depreciate so you wouldn't owe tax.

I have to deal with a 1099 from Ticketmaster when I sell my Celtics tickets to games I can't attend. I have a spreadsheet that I use to track ticket face value vs what I actually made on the sale (sale price minus Ticketmaster fees). I might get a 1099 for $1500, but I often don't show any profit from the sales so no taxes.

Mark

[sebastianroher]

Originally Posted by jac1976

You got this backward, hoss.

Typically the "seller" says to use F&F "to avoid fees." My point is if you don't want to use goods/services and can't cover fees for seller you don't know then you're just putting yourself out there to get scammed.

[stephen1070]

I only use zelle to send and receive money.

I have also sent checks to pelican sellers.

Please consider me greedy and cheap before buying any of my parts.

[Cory M]

I usually give buyers the option, to cover the fee or do FF or Venmo. Most cover the fee. Sometimes I'm selling things that aren't particularly valuable but are useful and hard to find. In those cases if I have to eat the fee it might not be worth the time communicating with potential buyers and boxing up and shipping. If it is something valuable like a set of wheels it can add up. Buyers on this forum are usually trying to save a buck (vs buying new) and it's worth it to some.

I got scammed once and PayPal provided me zero protection. I went through their process and shared all of the documentation and was 100% in the right. The scammer gave them a tracking number from one of my previous Amazon deliveries, and that was enough for them to deny my claim. So be realistic about what PayPal will do for you. Use your credit card if you want protection.

[Lawrence911s]

If you're the seller add the Paypal fee you'll pay to the price and be done with it.