Is PAYPAL restricting your account?

[Buttercookies]

Hi guys,

Quick question. Have you ever been asked by Paypal to issue Tax ID? and if you don't confirm your ID, what features did they take away from you?
I tried googling this, but I can't find the answer.

I had an incoming F&F transfer more than a week now but still on "pending" status. It also said that the money will be going into my "PayPal Balance" rather than the bank of my choice. I'm wondering if this is what they meant by restricting some feature. Strange because I'm able to send F&F fine.

 

[pearlsngems]

But can't you transfer the money out of your PayPal balance to your linked bank?

 

[Karl_K]

It has to do with taxes and failure to provide it can lead to locking your account and freezing the balance.
This is for the US but other countries have similar rules.

New U.S. Tax Reporting Requirements: Your Questions Answered

How these new tax reporting changes may impact you when paying or accepting payments with PayPal and Venmo for goods and services.

newsroom.paypal-corp.com

 

[Slickk]

I just completed a sale via PP and the funds were transferred to my account. I’ve not been asked for any documentation yet… hope it continues.

Have you called them? I’ve had luck with issues in the past via phone call. F&F should definitely go through!! Good luck.

 

[Buttercookies]

But can't you transfer the money out of your PayPal balance to your linked bank?

I can't even see the Paypal Balance. There is actually no feature to "Accept the Fund" either.

 

[Buttercookies]

I just completed a sale via PP and the funds were transferred to my account. I’ve not been asked for any documentation yet… hope it continues.

Have you called them? I’ve had luck with issues in the past via phone call. F&F should definitely go through!! Good luck.

I think it's okay as long as you don't accept the fund as "good and services". I had crossed the $600 once and it seems everything was fine. They kept asking for my SSN or Tax ID and I just ignore them. I guess now they are really blocking me.

 

[Buttercookies]

It has to do with taxes and failure to provide it can lead to locking your account and freezing the balance.
This is for the US but other countries have similar rules.

New U.S. Tax Reporting Requirements: Your Questions Answered

How these new tax reporting changes may impact you when paying or accepting payments with PayPal and Venmo for goods and services.

newsroom.paypal-corp.com

Dammit. I'm going to open Venmo and see if I can do through that instead.

 

[Slickk]

I think it's okay as long as you don't accept the fund as "good and services". I had crossed the $600 once and it seems everything was fine. They kept asking for my SSN or Tax ID and I just ignore them. I guess now they are really blocking me.

My funds were goods and services though as my person wasn’t familiar. And it was over that amount as well. Ugh!! Sorry!! Makes one not want to rehome goodies anymore! Which will definitely change what is purchased! #firstworldproblems I know.

 

[Karl_K]

Dammit. I'm going to open Venmo and see if I can do through that instead.

same tax rules apply.

 

[Nikki1415]

Another restriction starting this month is that paypal business accounts can't send or accept Friends/Family anymore. I was told by my friend who has a small business.

 

[Karl_K]

Another restriction starting this month is that paypal business accounts can't send or accept Friends/Family anymore. I was told by my friend who has a small business.

To many tax cheats, they are either being forced to or are trying to get ahead of new restrictions.
I suspect there is something in the new crypto rules that also applies to them.

 

[Buttercookies]

Update. So they finally release the fund or they call it “echeck” this morning. I’m confused but happy. Praying that the next several payments will be fine as well.

 

[Karl_K]

Wierd as echeck would not make a difference on having tax information:

Why is my incoming eCheck pending?  | PayPal US

An eCheck is an electronic payment funded by the sender's bank account. It usually takes between 4-7 business days to clear, but sometimes it may take longer...

www.paypal.com

 

[Nikki1415]

Update. So they finally release the fund or they call it “echeck” this morning. I’m confused but happy. Praying that the next several payments will be fine as well.

Echeck gets sent instead of instant transfer when the person sending the funds doesn't have credit cards linked to their account. I had that happen when I sold something and had to figure out why as I was supposed to ship the item but couldn't until the funds clear. I had the person add a credit card and re-send the money (which went through right away since they added the card) and a week later refunded the E-check when it finally went through.

 

[AnastasiaBeaverhausen]

It has to do with taxes and failure to provide it can lead to locking your account and freezing the balance.
This is for the US but other countries have similar rules.

New U.S. Tax Reporting Requirements: Your Questions Answered

How these new tax reporting changes may impact you when paying or accepting payments with PayPal and Venmo for goods and services.

newsroom.paypal-corp.com

*shakes fist in air*

 

[Rockdiamond]

Call me a skeptic….. I understand the tax issues…..I think they’re using it to their advantage.
The same PayPal email also announced a rate increase. It’s couched in an announcement that they are also removing a .49cent per transaction fee. This will result in lower fees for small transactions, but larger transactions ( like diamonds and jewelry) will cost more. The increase is small- but it’s a trend.
Like cracking down on F&F payments. And the reversal of fees in the case of a refund.
When there’s no competition, this is what you get. Sad