Ongoing Scare with Paypal
There is a post circulating regarding Paypal’s freezing of business accounts connected to projects and / or zines. We would like to address these concerns.
First, we are aware of Paypal’s policies. There is a default 20-day shipping period, but it can be overridden in the customized shipping options in the profile. We have set ours to a 30- to 90- day shipping period to cover pre-orders, production, and any incidental needs.
Second, the two points of 200+ orders / $20,000 USD gross income has been in place prior to June. This is not the amount at which Paypal will freeze a business account; this is the amount at which Paypal is obligated to report a business account to the owner’s country’s tax system, in which a business (or zine) is obligated to pay taxes based on the individual’s income. I have always set aside enough to cover taxes in my projects because whether we reach Paypal’s threshold or not, it is illegal to not report income when operating like a business / using a business account.
Third, the account this post speaks of was likely frozen for:
failing to modify shipping date ranges, or delivering products past said shipping date ranges;
pushing business transactions as personal / friends transactions, which bypasses / alters Paypal fees and is considered an illegal transaction;
the business failed to pay taxes on that business account in previous years.
Paypal will indeed look at an account if it passes both thresholds (200+ orders AND $20,000 USD income) to verify it is not money laundering or a scam. As long as an account has been making active purchases of products suitable to the businesses’ needs, it will not be frozen.
TL;DR: We are aware of Paypal’s policies and have followed all legal steps and precautions prior to this scare. We will continue using Paypal.
If you know of any projects receiving this scare, you are welcome to forward this post to them. If another project does not want to get tangled in the mess, they should follow these steps:
modify shipping date ranges in the profile
attach a legal bank account to the Paypal account
make several early purchases of shipping and / or packing supplies, so that if Paypal does raise a flag, you can prove intent to ship products even while in the pre-order / production period
Thank you, and we hope this eases all the concerns!
prguitarman
baratheonpilled
dailybridgerton
pixelskylines
yousharknotpass
izzy806
