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Alternatives to Paypal


Dave A

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I get the feeling that PayPal is going out of business, or will be repurposed. That's because the Feds are launching their own instant payment system in the next few months. It runs on the same network that Zelle uses, and I don't think Zelle does the 1099 thing. It definitely hasn't for me. The plot thickens.

 

https://www.federalreserve.gov/paymentsystems/fednow_about.htm

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18 minutes ago, RealMarkDeneen said:

I don't think there us any recourse with USPS money orders, right? Once mailed, that money is gone.

The USPS M.O. is not mailed.  You physically go to your local post office and plunk down your hundred bucks cash (for example) and you pay about three bucks for the service.  The post office issues you a USPS official check and it's good as gold like a certified bank check.

 

The post office has your hundred bucks and you have a check that can be cashed anywhere by anyone.  I've used them a few times while buying used speakers.

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16 hours ago, babadono said:

I want to make sure I understand...I bought a brand new pair of speakers for $5000 with money I already paid income taxes on. I enjoyed them for 10 years. Being a normal joe wage slave I could not write off any portion of this expense as capital acquisition or depreciate any of it over the years. I sell them for $2000 to some other normal joe and the $2000 is income to me? Sounds more like I had a $3000 loss.

You forgot to add that you paid State Sales tax on those $5000 speakers too. So selling them at a loss should be a tax Deduction against the income, right?

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19 hours ago, JohnJ said:

& who was it that opened police stations in CA and NYC recently?

HTF can that be when they are were foreign to our soil?

Look up the word,  Fascism, the current state of affairs what has evolved in the new millennium since 9/11.

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16 hours ago, babadono said:

I want to make sure I understand...I bought a brand new pair of speakers for $5000 with money I already paid income taxes on. I enjoyed them for 10 years. Being a normal joe wage slave I could not write off any portion of this expense as capital acquisition or depreciate any of it over the years. I sell them for $2000 to some other normal joe and the $2000 is income to me? Sounds more like I had a $3000 loss.

To make sure you understand:  No, it is not taxable income to you.  Sales of a person's items for less than purchase price is not taxable income, per the IRS.  The real issue is that now there may be more paperwork involved to show them that fact.  Basically, it can be described as unnecessary meddling and a nuisance to the honest public.

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13 minutes ago, oldtimer said:

 Basically, it can be described as unnecessary meddling and a nuisance to the honest public.

not really ,  there is also revenue   selling used goods by flipping  for much higher prices on the web ,  and so far these sellers  paid 0 taxes  , take the example of a guy buying a pair of speakers for 6k$ at an auction then flipping the same speakers for 125k$ on Ebay  the new rules are seeking these sellers who used to  get away tax free 

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3 minutes ago, OO1 said:

not really ,  there is also revenue   selling used goods by flipping  for much higher prices on the web ,  and so far these sellers  paid 0 taxes  , take the example of a guy buying a pair of speakers for 6k$ at an auction then flipping the same speakers for 125k$ on Ebay  the new rules are seeking these sellers who used to  get away tax free 

Maybe you missed my use of the word "honest."

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I have been using PP with friends and family with no problems.  The last time I tried to sign in, they demanded my phone number.  So I haven't signed in lately.  They already have the bank account information, why should I provide a mobile number?  So, a heads up for hot sauce fans, of which there will be some soon, I might only take checks, or cash equivalents like MOs.  

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To answer Dave…

 

The online payment systems are subject to the same reporting requirements, but seem to be implementing them at different speeds.

 

Cash F2F is great, but it limits a sales market to those willing to drive.

 

I have used USPS money orders as a customer which are a minor inconvenience, and a mild to moderate risk.  The inconvenience part is that they top out at $1K, so you may need multiples.  They’re about $3 each.  You buy them with cash at a Post Office clerk’s window when it’s open.  It’s not a wire transfer, so you need to mail the check.  You probably want some delivery insurance on the check, too.

 

As a seller, you’ll also need ID to cash it and probably to pick it up.  The seller may want to wait for it to clear, too.  
 

Shipping is a separate process we don’t need to cover here.
 

Once all that’s done there’s the possibility you (customer) get less than you’re expecting.  That includes getting nothing.  One advantage to using the mail is that you have some protection, but it’s slow.  Mail fraud is a pretty big deal, as it’s a federal crime. 

 

Buying via money order isn’t for the faint of heart, but it’s worked out OK for me as a buyer.

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1 hour ago, oldtimer said:

I have been using PP with friends and family with no problems.  The last time I tried to sign in, they demanded my phone number.  So I haven't signed in lately.  They already have the bank account information, why should I provide a mobile number?  So, a heads up for hot sauce fans, of which there will be some soon, I might only take checks, or cash equivalents like MOs.  

Lately PP texts me security codes when I make a payment. So they want your number for your security. 

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Companies wanting your phone number always have pretty much the same motivation: Tracking. Cell providers track and sell surveillance info.

https://www.cnet.com/tech/services-and-software/dont-want-your-phone-carrier-tracking-your-personal-data-you-can-tell-it-to-stop/

 

I imagine most people have no clue that it is even happening. So, there are good odds that providing your phone number will be at least marginally valuable to whomever is wanting it.

 

Unfortunately, "surveillance economics" is a big and permanent aspect of the modern economy.

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Regarding the IRS and companies issuing 1099s

 

The camel's nose is under the tent now. The 1099 process by Esty and Reverb (same company) and others, is just step 1. Once the FED launches its "FEDNow" service in mid '23, I suspect that Etsy will deduct a standard "tax reserve" like 15% or so from your proceeds, and send it directly to the IRS, and you will have to argue it back when you file your return.

 

In California, when you sell a home, the escrow company witholds about 8% of the gross proceeds and sends it directly to the state tax board. Then, the seller has to show when filing taxes that they don't owe the tax, or that they owe less, or whatever. The burden is on the seller to claw back what is owed them - or, I suppose, pay more if that is the case.

 

The "connections" in a fully connected world, are never going to work in the favor of the lowly wage-earner or average powerless citizen.  Of course, this is what the citizens wanted, so, I guess they're ok with it.

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To anyone interested, instead of in the book thread, let me recommend Barry Eisler's "The God's Eye View."  A work of fiction in the action/intrigue genre, but the author gives extensive links for each chapter to real information regarding the surveillance society we live in.  Joe Bob Briggs says "check it out."  

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On 10/14/2022 at 2:20 PM, mike stehr said:

Considering the obnoxious frustration password I set-up for PP, I consider them rather nice letting that password slide....

Ha Ha yes I get that one. In the past when one of ATT's never ending screw up sagas was ongoing I got on telephone support to try and solve the latest mess. The tech asked me what my password was and I said @TTSUCKS!. She busted out laughing and I just can't imagine why.

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