New at this...how to receive monies.

[decoangel]

I have had PayPal to purchase items.  The account is linked to a credit card.  However, I want to be able to receive money from others - reimbursements from friends, garage sale sales, etc.  Do I need to link to a bank account?  If I do, will this supercede the credit card for future purchases I want to make?  Or will I be able to toggle b/w the bank account and the credit card?  Also, if you are 'garage sale' selling do you need to open a business account?  And lastly, any monies received that is from a 'garage sale' sell is that reported to the IRS?  I just want to be square with all the legal aspects of using PayPal to receive monies from outside sources.  Thank you.

[Whac-A-Mole]

linking a bank account will alow you to transfer your Paypal fund to your bank account,when you make payment using Paypal,it will ask you which source of fund you want to use-Paypal fund,bank,or credit/debit card,or you can set a primary source in your profile.

as for accepting sales proceeds from garage sales,it should go under goods and services and Paypal fee is 30 cents per transaction plus 2.9 % of total proceeds ,since it is local pickup,you cannot prove with online viewable tracking showing it has been delivered,so buyer if they ever file dispute of item not received once they get home,you will lose the dispute.

for friends who sent you money,it should go under friend and family ,and no paypal fee .,it is considered a gift and tehy cannot file any dispute.

[Whac-A-Mole]

Paypal encourages us to open a business account if you are running a business,whether you have a business or personal account,if you accept 200 transactions AND $20k in one year,Paypal will issue 1099k ,one copy to you and one to IRS.

With enough transactions completed,under a business account,you can apply for  a Paypal business debit card which taps your paypal fund backed by bank fund,when you use it as a CREDIT CARD,Paypal gives you 1% cash rebate.

Many of us use it as a way to deflate fees paid to Paypal when we sell.

[Whac-A-Mole · Accepted solution]

200 TRANSACTIONS AND $20K -they are all business transactions ,not payments from friend and family.