I had the same error on my paypal account for a while. It went away after a month or two. Then this month, after I loaded 2k it popped up again. My guess it's one way to limit.

My SO's account had the same error, but in that account there was something in the resolution center to send in a utility bill to verify identity.
That account has done the 4k load and then debit MO every month even though my account has been out.

Good to know that PP MyCash somehow got missed on the CC reload ban at CVS, I'll have to try a few when my local Rite Aid runs out of PP cards (they always do when I buy them).

Haven't ever loaded once, and theres nothing in resolution center for me :(

Also, lady never submitted ticket for me...not sure what I really expected though :p

Rite Aids are out of my way around here. I have CVS and Walgreen's everywhere. I'll be paying them a visit.

You can buy OV at CVS and use them for MO at grocery store. Very easy.

Data point:

Went to Rite Aid to purchase 2 PayPal Mycash cards @ 500 each. Cashier said because of the high dollar amount transaction, the purchase would have to be split into two transactions. Just last week I was able to purchase $1000+ in the same transaction. I opted to purchase one card as I feared purchasing the second would have set off a fraud alert. Will try again next week and report back.

I concur. However, I'm trying to diversify to make sure I'm ahead of the inevitable shut down of that method.

I think it depends on their training and how much they really care about policy. I've had someone tell me the same thing, then go back the next day and have a cashier I've seen there for as long as I've been going there and he sold me $1000 in one transaction as well.

Yep it's a local thing, the register doesn't care. In my local RA the manager insists on doing separate trans for each card, but most of the cashiers just ring all of them up together. Same when buying MoneyPaks, but for those I would buy them all separately anyway given all the issues with them. PP cards have no issues for me (so far, knock on wood).

1099-K
 

Can anyone confirm from 2013 that went over 200 transactions and over $20k due to My Cash Reloads that they did not receive a 1099-K. Because it specifically states that personal payments are not reported. Personal payments should include transfers to family and friends and My Cash Reloads.

"No. Personal payments that are not payments for the sale of goods or services will not be counted when determining if the IRS thresholds have been reached and will not be included on your Form 1099-K if you exceed the thresholds. However, all payments received for the sale of goods or services will be used to calculate the gross payment volume to be reported. PayPal monitors accounts to ensure that personal payments are not being used for sales of goods and services."

I'm on pace to hit 300 transactions (mostly small) and will only hit around 18k for the sale of goods and services, but around 60k if you include My Cash reloads.

They shouldn't count for your 20k/200 transaction thresholds. You can make sure of this. Not sure how to do it in the new layout of PayPal but in the old layout: under the History tab at the top click Reports. Then click Annual Financial Summary and select 2014 (year to date). Under Sales Activity you should see how much you've done this year thus far, and the Cash Cards shouldn't factor in. They'd be under "Transfers to PayPal Account". I'm pretty sure that's the way it is for me anyway

So I've got a Premier Account and for me they are listed in the Sales Activity. Maybe this is different in Buisness Accounts?

I don't have an answer to that precise question, but here's what happened to me the year before that:

I had invested a bunch in Microplace over the years and I asked for my principal to be returned. They sent it to me via Paypal, because that's how I originally invested it. It came in as a few large payment as each "note" matured. These PP payments were _not_ coded as a goods sale for me, as far as I could tell. Then again, they weren't explicitly "gifts" either. I thought everything was fine, until April of the next year. I got nailed HARD with a 1099-K. Paypal said there was nothing they could do because they were just following the law and their system doesn't differentiate between sales and funds transfers like that. This was a Premier account, by the way.

I think I would be slightly worried. You could always have a non-MS-involved "friend" send them an email and ask if such reloads are treated as a gift or what.

Guys, if you get a 1099 for MyCash loads, I would not be worried. Just bring it to a CPA. I run a small online business, and most of my customers pay via PayPal. PayPal always sends me a 1099 for the complete amount, not my income less shipping charges, so I always pay taxes on an amount smaller than what PayPal has on my 1099. Seriously, just get a CPA. No big deal.

WOW! I sell stuff on eBay a bit, and load 4K, and get payemnts with PP, and I am still not worried of hitting 200 tx. Of course, if you do have a store on eBay or do serious work with PP, then sure, I guess PP MyCash could push you over the top.