Money transfers from friends now showing as sales in business account

stlrnut30
Contributor
Contributor

Hi, I recently changed my PayPal account to a business account as I have a small side business. Now it seems that anytime a friend has transferred money to me (not a sale), it is showing as a sale on my account. The last transfer even had fees taken out. Why is this occurring? Isn't there a way to distinguish transactions? I have a very low tax reporting limit in MA and now will most likely not be able to use my able to use my PayPal Here scanner.

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2 REPLIES 2

Anonymous_User
Not applicable

If someone sends you money using the Send Money feature and chooses the option for "Goods and Services", you will be charged a fee.   Goods and Services is intended for selling unlike "Friends and Family".     Assuming both the sending and receiving account are in the same country and the sender selects "Friends and Family" and uses money from their PayPal Account Balance or their bank account, there are no fees.   Fees are explained here.

 

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stlrnut30
Contributor
Contributor

I get the fee on that one transaction as the person set it up wrong, but why do other normal money transfers without fees count toward my annual sales amount? Thanks

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