PAYPAL Fees

cdreams
Contributor
Contributor

I understand PAYPAL charges fees for an Ebay sale and then on shipping, so basically on the total. I can accept that, as a part of doing business. What I am having trouble with is how PAYPAL, is now including Ebay State Sales Tax collection into my totals. Ebay collecting State Tax is not great for the Buyer, but Ebay has made collecting that State Tax painless. However, what right does PAYPAL have to include that in my total and then charge me a Fee for Ebay's State Tax collection. I receive monetary benefit from my Ebay sale, but I receive no monetary benefit from Ebay's State Sales Tax collection, so why does PAYPAL charge me a fee. I hope the word gets out, and for now, nothing will be done as this is another way to make money. I don't see PAYPAL ending this process any time soon. Welcome any thoughts?   

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sharpiemarker
Esteemed Advisor
Esteemed Advisor

@cdreams 

 

Because the entire amount including sales tax is being moved for you, meaning the entire around is being collected for you in general. If any other taxes in the future are levied by the government on our sales, that too will be included. It's just how it is. A cost of doing business. Factor the cost in your item price. CC Merchant accounts do this too. They do not separate out the sales tax and not charge fees on that.

 

A lot of folks who are only now able to run their own business because of technology are not aware of these costs and customs, and none were able to figure out how to tap the internet to make revenue, including the government...well now they have so....

 

It is my understanding that eBay and PayPal previously worked out system that avoided this but in recent months go rid of it.


Kudos & Solved are greatly appreciated. 🙂
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