In order to avoid F&F payments, simply offer to 'gross up' the payment. Some people mess up the math for this by thinking you can just add 2.9% to the purchase price. Instead, divide the purchase price by 97.1% or 0.971 (100% - 2.9 % or 1 - 0.029).
So, for example, if the seller wants $100, pay him $102.99 ($100/0.971). PayPal will charge 102.98 * 2.9% or $2.99 which makes him whole for the $100.
- Glenn W9IQ
Nice thought. Doesn't always work, though.
A few months back, I saw an ad for a particular Alinco mobile that I was looking for. Price was good, exchanged emails, agreed on a price with shipping... but the seller wanted a F&F payment. So I figured the cost to him for PP fees, rounded up, and sent that amount via PP. NOT PP F&F.
An hour later, I got my payment refunded. No explanation. Seller ghosted me since.
Was he trying to avoid having the sale reported to the IRS, if his total sales for the year exceeded the new $600 limit?
Or was he a scammer trying for a fast buck and no recourse for me... and when I called his bluff, so to speak, he had no other recourse.
Or... well, whatever. No matter what, I think I dodged a bullet on this one.