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Fairly self-explanatory...Google Checkout is offering 0% fees for sellers until December 31st...which is great if you're an online merchant/eBay seller.
See here: https://checkout.google.com/seller/freetransactions.html

It also brings up the possibility that you could "buy" lots of stuff from yourself on your CC and just rack up points/CashBack/whatever.

HOWEVER, Google Checkout does require a Social Security #, so they might report to the IRS. So if you go insane and rack up 500,000 points, the IRS might very well think you're conning them out of hundreds of thousands and come after you. So...it might be risky.

Also, it's blatantly against the terms of service, although technically they can't stop your wife/husband/mother/father/aunt/uncle/nephew/niece from buying stuff from you, lol.

BTW, this marks my first deal post in a looooonnnnngggg time, lol
Edit by Moderator: Thank you for participating in the forums. However, this topic has been covered in a recent post Here.

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Seems like it took them two extra weeks to actually impliment the fees. Dang it, that was a $500 missed opportunity .

Glitch99 (Feb. 18, 2008 @ 10:36p) |

Glitch - did you also get a call from GCO regarding the financial docs? My spouse (GCO seller) got numerous calls from ... (more)

Venturion (Feb. 18, 2008 @ 10:39p) |

I got a call, but he only said that he would be sending me an email about having to submit some financial info and instr... (more)

Glitch99 (Feb. 18, 2008 @ 11:20p) |

Quick Summary is created and edited by users like you... Add FAQ's, Links and other Relevant Information by clicking the edit button in the lower right hand corner of this message.
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Wait until the state comes after you for not paying sales tax on it. I my state that's over 8%!

Snyder81 said: Wait until the state comes after you for not paying sales tax on it. I my state that's over 8%!
Yeah, although I do remember that time when paypal was letting people charge stuff up for free, I charged like an extra 2K or something (but maybe I sent it quasi cash).

And who can forget C2it...

Mostly the problem is the fact that they'll probably report to the IRS, although even then I think they may only report above a certain amount.

Regardless, still a great deal for online merchants at least, only thing is that it's not very easy to use for eBay.

cirrus said: Snyder81 said: Wait until the state comes after you for not paying sales tax on it. I my state that's over 8%!
Yeah, although I do remember that time when paypal was letting people charge stuff up for free, I charged like an extra 2K or something (but maybe I sent it quasi cash).

And who can forget C2it...

Mostly the problem is the fact that they'll probably report to the IRS, although even then I think they may only report above a certain amount.

Regardless, still a great deal for online merchants at least, only thing is that it's not very easy to use for eBay.


This is definitely a topic that needs more discussion, as a huge potential deal. Green for OP.

More info here: https://checkout.google.com/seller/content_policies.html

DO NOT LINK, THANK YOU.

cirrus said: Snyder81 said:
Regardless, still a great deal for online merchants at least, only thing is that it's not very easy to use for eBay.


Any ideas on how to circumvent Fleabay?</blockquote>

wait, so if i start selling stuff i own to other people, i have to report it on my tax return as income ??? wtf? I already paid taxes for it from my wages and when I bought them, why do we need to pay taxes for it when we sell them.

From one of Google's help pages

Your Social Security number and Federal Tax ID/EIN are strictly for Google's use in helping you sign up for Google Checkout. Under normal business circumstances, this information won't be used for governmental tax purposes or other activities outside the scope of the Google Checkout program.

https://checkout.google.com/support/sell/bin/answer.py?answer=25402
DO NOT LINK

More infoWhy is my order displaying a 'Customer review in progress' status?

When Google detects questionable activity related to an order you receive, Google will mark the order with a 'Customer review in progress' status and perform fraud detection checks on the order to reduce your exposure to risk. During this time, you won't be able to charge the order.

In general, we complete reviews within four to six hours. For certain orders posing a higher potential risk to you, Google specialists will perform even more extensive fraud detection checks for your protection. In these rare cases, reviews may require more time.
https://checkout.google.com/support/sell/bin/answer.py?answer=45175
DO NOT LINK

LOOPHOLE said: Snyder81 said:
Regardless, still a great deal for online merchants at least, only thing is that it's not very easy to use for eBay.


Any ideas on how to circumvent Fleabay?
Do you mean how to use Google Checkout with eBay? To my knowledge it's perfectly within eBay policy to use a non-paypal arrangement for payment. Think of it as sending a check or money order behind eBay's back, so to speak. I think the problem that snyder alluded to was that it's not well integrated with eBay (checkout links, email invoices, etc.). Yet.

sinik said: More infoWhy is my order displaying a 'Customer review in progress' status?

When Google detects questionable activity related to an order you receive, Google will mark the order with a 'Customer review in progress' status and perform fraud detection checks on the order to reduce your exposure to risk. During this time, you won't be able to charge the order.

In general, we complete reviews within four to six hours. For certain orders posing a higher potential risk to you, Google specialists will perform even more extensive fraud detection checks for your protection. In these rare cases, reviews may require more time.
https://checkout.google.com/support/sell/bin/answer.py?answer=45175
DO NOT LINK


As far as fraud is a concern, if it'll work as good as identifying spoof e-mails, I'm expecting it to be way above PayPaI.

But about this deal: how to work it legally and according to GoogIe's rules?
Can I pay, for instance, rent with it? How easy is to set up a withdrawal of GCO funds to checking account ?

Anyone already experienced with that?

sinik said: LOOPHOLE said: Snyder81 said:
Regardless, still a great deal for online merchants at least, only thing is that it's not very easy to use for eBay.


Any ideas on how to circumvent Fleabay?
Do you mean how to use Google Checkout with eBay? To my knowledge it's perfectly within eBay policy to use a non-paypal arrangement for payment. Think of it as sending a check or money order behind eBay's back, so to speak. I think the problem that snyder alluded to was that it's not well integrated with eBay (checkout links, email invoices, etc.). Yet.


I don't really care about integration, I'm concerned that because it's not
Feebay approved, if they find out via customer or whatever, they'll shut me down.
There's alot of idiot customers that might get feebay involved, even accidently.

sinik said: Do you mean how to use Google Checkout with eBay? To my knowledge it's perfectly within eBay policy to use a non-paypal arrangement for payment. Think of it as sending a check or money order behind eBay's back, so to speak. I think the problem that snyder alluded to was that it's not well integrated with eBay (checkout links, email invoices, etc.). Yet.
Your knowledge is incorrect. eBay's Accepted Payments Policy clearly spells out that Google Payments may not be used in conjunction with eBay sales.

Why bother with eBay? Set up a store online with any Web host. No need to pay fees per purchase to anyone. You're just buying from yourself, remember. The store doesn't have to be slick or integrate with any merchant transaction service other than Google. Just make sure your merchant name is different from the name on your credit card.

Your bank may not know why you're suddenly buying lots of stuff from the MegaGalaxy Electronics Company. But that's nothing they'd be concerned about as long as your monthly bill is paid, right?


steveme said: Google Auctions

This can't happen soon enough.

LOOPHOLE said: steveme said: Google Auctions

This can't happen soon enough.



Yes. I am reposting that because since finally google is putting the heat on the checkout for merchants. I would assume once it hits a certain figure of sellers, they will hit eBay HARD one day when they are not looking offering free listings, free fees, free everything to get people over to their service. Hope this comes tomorrow.

CreditGuy said: Why bother with eBay? Set up a store online with any Web host. No need to pay fees per purchase to anyone. You're just buying from yourself, remember. The store doesn't have to be slick or integrate with any merchant transaction service other than Google. Just make sure your merchant name is different from the name on your credit card.

Your bank may not know why you're suddenly buying lots of stuff from the MegaGalaxy Electronics Company. But that's nothing they'd be concerned about as long as your monthly bill is paid, right?


for one reason, I or anyone else would be able to "dilute" the transactions,
I have a lot of CC's, but adding some random ones wouldn't hurt.
I never underestimate the capabilities of companies to "track" things like these.

steveme said: LOOPHOLE said: steveme said: Google Auctions

This can't happen soon enough.



Yes. I am reposting that because since finally google is putting the heat on the checkout for merchants. I would assume once it hits a certain figure of sellers, they will hit eBay HARD one day when they are not looking offering free listings, free fees, free everything to get people over to their service. Hope this comes tomorrow.




The payment wars between PayPal (a feeBay company) and Google Checkout are heating up. In its first move against Google, feeBay has banned its customers from accepting from Google Checkouts, citing that the service does not have a proven track record.

Google Checkout is amongst 39 other payment services not allowed on feeBay.

Google spokeswoman Megan Lamb said in an e-mailed statement that the company has offered billing and payments as part of its advertising software for years. The new service was rigorously tested before it was released, she said.

Many long time feeBay customers are angry. They don’t want feeBay dictating what kinds of payments they can and cannot receive. Many sellers denounced feeBay’s decision on the feeBay message boards, making such statements as “Bad, bad feeBay. feeBay wants to squeeze every last penny out of the sellers. I hope this comes back to bite them.”

It sounds like feeBay is afraid of the competition.

LOOPHOLE said: steveme said: LOOPHOLE said: steveme said: Google Auctions

This can't happen soon enough.



Yes. I am reposting that because since finally google is putting the heat on the checkout for merchants. I would assume once it hits a certain figure of sellers, they will hit eBay HARD one day when they are not looking offering free listings, free fees, free everything to get people over to their service. Hope this comes tomorrow.




The payment wars between PayPal (a feeBay company) and Google Checkout are heating up. In its first move against Google, feeBay has banned its customers from accepting from Google Checkouts, citing that the service does not have a proven track record.

Google Checkout is amongst 39 other payment services not allowed on feeBay.

Google spokeswoman Megan Lamb said in an e-mailed statement that the company has offered billing and payments as part of its advertising software for years. The new service was rigorously tested before it was released, she said.

Many long time feeBay customers are angry. They don’t want feeBay dictating what kinds of payments they can and cannot receive. Many sellers denounced feeBay’s decision on the feeBay message boards, making such statements as “Bad, bad feeBay. feeBay wants to squeeze every last penny out of the sellers. I hope this comes back to bite them.”

It sounds like feeBay is afraid of the competition.


They are. An inside source I know at eBay has said they are very worried about buyers no longer coming to eBay. Notice the surge of IT commercials lately? All the eBay express ads, etc. They did a market study along with numbers decreasing, and buyers are just not coming to eBay like they used to. They are very scared, which is why they are squeezing sellers for all the money they can right now, as they know the future will never be this good for their business model.

tlaxson said: eBay's Accepted Payments Policy clearly spells out that Google Payments may not be used in conjunction with eBay sales.

In addition to various banking regs, it seems that eBay/Paypal think they are immune to the Sherman Antitrust Act. Maybe if 50,000 people file complaints with the FTC, something might be done about it. I wouldn't hold my breath.

Here's my joke of the day:
"Why does eBay have this policy?

Safety and convenience are at the core of eBay’s policies toward payments. This policy is designed to promote safe online shopping, and to encourage online payment methods that are safe, easy to use, reliable, and offer high levels of protection for users. The policy also attempts to preserve some flexibility for users that still prefer offline payment methods."

This policy "encourages the use of safe online payment systems" (funny, there is exactly ONE online payment system allowed) while still, grudgingly, allowing traditional payments (check, money order, credit card). Sure sounds like a setup that's prosecutable under Sherman.

tlaxson said: Your knowledge is incorrect. eBay's Accepted Payments Policy clearly spells out that Google Payments may not be used in conjunction with eBay sales.

You're right. I stand corrected:Payment Services permitted on eBay: Allpay.net, Bidpay, cash2india, CertaPay, Checkfree.com, hyperwallet.com, Moneybookers.com, Nochex.com, Ozpay.biz, Paymate.com.au, Propay.com, XOOM

Payment Services not permitted on eBay: AlertPay.com, anypay.com, AuctionChex.com, BillPay.ie, ecount.com, cardserviceinternational.com, CCAvenue, ecount, e-gold, eHotPay.com, ePassporte.com, EuroGiro, FastCash.com, Google Checkout, gcash, GearPay, Goldmoney.com, graphcard.com, (forbidden by FW).com, ikobo.com, Liberty Dollars, Moneygram.com, neteller.com, Netpay.com, paychest.com, payingfast.com, Payko.com, paypay, Postepay, Qchex.com, rupay.com, sendmoneyorder.com, stamps, Stormpay, wmtransfer.com, xcoin.com
Source (link away!)

I have been using google checkout now since it's inception. i have a simple website i use to refer eBay customers to. everything is going smooth.

i want to rack up some AMEX points. i have another credit card not in my name. can i set up another google checkout account using this card and buy 100k worth of "stuff?"

im also really excited google checkout now has a send invoice function!

Why doesn't Google delete all eBay results from their searches? Whereas feebay says Google Checkout has an "unproven record" (yeah, like Buy.com), I think feebay has a pretty proven record of allowing fraud, so there's better reason to block them.

I cannot believe feebay is allowed to act as it does.

arun21 said: i want to rack up some AMEX points. i have another credit card not in my name. can i set up another google checkout account using this card and buy 100k worth of "stuff?"

Check the T&Cs when signing up. If this is not mentioned explicitly, I am sure it goes against the "spirit" of the T&Cs.

Here's a fun exercise. Complete the Google analogy: Clicking your own ads on Google Adsense is to banned account as charging your own credit cards on Google Checkout is to ________ _________.

Is anyone actually planning on doing this to get Cash Back or points? While it seems possible that they would report to the IRS, couldn't it be easily proven that you were buying stuff from yourself? I don't know tax code whatsoever but it seems like this shouldn't be taxable at the end of the day. But then again, even racking up $1,000,000 at 1% cash-back is $10,000. Assuming its not technically taxable, that almost might be worth the audit...

walletfart said: Why doesn't Google delete all eBay results from their searches?I would love to see that happen, but that would be stooping to their level more or less. Plus who knows, maybe google gets referral money for those links.

Either way, with a little competition (okay, big competition from the "G"), eBay will be forced to clean up its act or fold.

I believe most new accounts have a Pay Out limit of $500.00. See the info below for an explination of their monthly payout limit:

A monthly payout limit is a restriction on the total amount of earnings you can receive at one time.

When you process transactions through Google Checkout, your payouts are sent to you according to the standard payout schedule. With a monthly payout limit, however, your earnings will be paid to you over a longer period. For example, say you have a monthly payout limit of $500. If your total sales in July equal $600, only $500 will be paid to you in July; the remaining $100 will be carried over to your August payouts.

Not all sellers have monthly payout limits. If you have a payout limit, the limit amount will appear on your Payout Summary page, Payout Summary Details page, and payment settings page. On these pages, you may also see a notification message asking if you'd like to remove your monthly payout limit. By clicking the link in the message, you can request that Google perform a simple review and remove your monthly payout limit so you can receive your payouts more quickly. (If you don't see these notification messages, you aren't currently eligible to have your monthly payout limit removed.)

I dont have a payout limit. I really don't want to jeopordize my Google status so Im going to leave it alone until I hear further of what other people may be doing.

Durzy also said that, theoretically, a seller could accept Google Checkout if a buyer requests it. "There is no way for us to monitor it. We are not a middleman,...there's no way for us to know. We are concerned about sellers marketing inappropriate or unsafe payment methods."

Text

for paypal , I do not get points or Cash Back.
How about google? WIll you get points or Cash Back for google?

You know, I was thinking this over and even if the IRS really wanted to come after you, if you're actually buying something from yourself for resale you don't have to charge yourself sales tax.

So essentially you could buy a $3000 item "for resale" from yourself. Then resell it to yourself for resale without charging yourself sales taxes...rinse, repeat, etc. Or rather you and a friend could do this back and forth and just rack up sales. Then eventually you could do one not for resale and just pay the sales taxes on that once. You wouldn't even have to pay income tax since you'd be selling it at cost.

Then you could make totally legitimate paperwork-except it'd be very hard to explain to the IRS wtf you were doing, since it would also look a lot like money laundering. Of course you could probably clear it up, especially if you were using electronic money that was already clean or whatever. It'd look funny but technically I don't think they could really do anything about it.

I think the real problem with doing this legitimately is that you'd have to file paperwork to your state that would show that you had like, $900,000 of revenue and didn't charge sales tax on anything, lol.

Anyways if you don't go overboard with this, and just charge up a few thousand bucks nobody's going to come after you. Heck, even if you charged up like $30,000 it's very unlikely that you'd have profited $30,000 since your margin could have been just 10%. So it wouldn't even really be worth the IRS' time to come after you even if you were really selling it to someone. Only real problem is whether Google would let this through.

EDIT: lol, I just thought of a good idea to explain this to the IRS/state. Just tell them that you were testing your new checkout system to see if it would be a good replacement for your previous processor. So you kept paying yourself to see if there would be any problems, how chargebacks would be handled (just for fun you could file a chargeback on yourself), etc. Absolutely nothing illegal about that actually. Then just show them all your credit card bills showing that you're just paying yourself, and voila.

Hc000 said: wait, so if i start selling stuff i own to other people, i have to report it on my tax return as income ??? wtf? I already paid taxes for it from my wages and when I bought them, why do we need to pay taxes for it when we sell them.


You have to report and pay taxes on the business income from every sale (the total).

The business income is the amount you received from the sale minus what it cost you to make that sale -- which includes what it cost you to obtain the item, and the portion of any transaction fee/CC payment fee/other expense that you had to incur in order to make that sale.


You need to retain records that prove the exact cost of that sale, otherwise, the IRS may assume that cost is $0, should they question it.


If you repeatedly "buy" and "sell" the exact same thing for the exact same price on both buy&sell side, with the same friend, this is a total wash.


Keep the receipts from every transaction, with adequate notes to explain why you are executing this series of transactions on "Google's system" with no net effect, and you should be fine, I suspect, account for every penny.

After all, none of these are 'really intended to be sales', or transfer of title, assuming you wind up still owning the item and you and your friend both have the same amount of cash afterwards, that a "sale happened" is just what you are allowing the payment processor to believe.

This may get you in trouble with the payment processor (if they find out that you didn't actually sell anything, just sent money back and forth), but the revenue service is not commissioned to look out for the payment processors' business interests.


Now if you are earning points from every transaction, the act of earning the points will give you some income that you have to report (the value of the points you get when you buy may have to be treated as a reduction in the cost of the next sale, OR it may be separate income entirely).

Does Google allow the merchant to choose the coding of the transaction through Visa/MC? (i.e., Gas Station, Grocery, etc)

Has anybody received Chase or Citi points for a Google Checkout purchase?

yes I have receive points from google checkout

Dracolith said: Hc000 said:

Now if you are earning points from every transaction, the act of earning the points will give you some income that you have to report (the value of the points you get when you buy may have to be treated as a reduction in the cost of the next sale, OR it may be separate income entirely).


all point/miles programs states that points/miles have no cash value. so I assume that only the fact that one accumulates points does not trigger taxation. However, when one redeems points for a flight/hotel state/ GC this event may trigger taxation on the value of the received benefit. the way around it is to sell point to a friend for $1, pay tax on that $1. points can be used as usually </blockquote>

taxmantoo said: Does Google allow the merchant to choose the coding of the transaction through Visa/MC? (i.e., Gas Station, Grocery, etc)

I may have answered my own question:
Google FAQ

Why do I need to provide a primary product type?

By providing your primary product type, you can help Google provide the most accurate merchant classification code for your business to the appropriate credit card associations.


all point/miles programs states that points/miles have no cash value.


Which has nothing to do with whether these points you are earning actually do have taxable value or not; what the program terms are stating is you can't redeem the points for some certain amount of cash, I.E. "X points" isn't fixed at a value of "$Y" -- you may still need a word from your tax advisor about the value of these points.

For tax purposes, the fair market value has to be determined in a reasonable way -- if you are able to sell points, I.E. there is a market out there for these points, then the points have value (what a buyer would be willing to pay and a seller would be willing to sell the item for, where buyer and seller have no obligation to complete the transaction, and no special relationship exists between the two).


Selling all the points to your friend for $1 does not change that fair market value -- this may be no better than trying to sell some gold to a friend to avoid booking the capital gain, or trying to sell a house for $1.

The transaction is simply fraudulent.

In my best estimation, "what a friend is willing to pay for your points", is not likely to be regarded as a reasonable determination of the fair market value.

Skipping 213 Messages...
Venturion said: Glitch - did you also get a call from GCO regarding the financial docs? My spouse (GCO seller) got numerous calls from (562) area code, if I recall correctly. Spouse never answered and don't believe we ever got the e-mail.I got a call, but he only said that he would be sending me an email about having to submit some financial info and instructions on how to do so (and I mean it was the ONLY thing he said, there was no other discussion). This did happen on 2/1, immediately following having $100k processed in Jan, which might have been the trigger. And I believe the call came from a blocked/unavailable number if I remember correctly.



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