You can pay for the gift card using PayPal or a debit or credit card. You must also enter your full name and the email address where Facebook will send the digital gift card within 24 hours. If you want to send the gift card as a present, enter the full name and email address of the recipient.
Will Facebook Credits become the next PayPal? Recent moves are bringing the nascent virtual currency closer into competition with payment providers like the eBay-owned site, as well as Apple and Amazon.
how to buy facebook credits with paypal
Last week, Facebook and Zynga announced that the five-year deal over Credits they had signed last May was an exclusive one, meaning Zynga's games on the site will exclusively use Facbook's coinage. Facebook has set up similar deals with all the other major social game developers like CrowdStar, Disney's Playdom and RockYou. Electronic Arts' Playfish has been testing Credits as well, and will probably follow suit. But Zynga is certainly the biggest, with an estimated revenue run-rate of around $600 million, according to Business Insider.
This isn't the first time the idea of Credits as a major competitor to payment providers has surfaced. Former PayPal executives debated over the question-and-answer site Quora in June about whether Credits could replace PayPal. But with this latest announcement with Zynga, it looks like Credits has its ducks lined up in a row.
Sales of virtual goods in 2010 will be about $1.6 billion in the U.S., Inside Facebook estimates in a report, with $835 million of that coming from social games. The vast majority of that $835 million is likely coming from Facebook games. Now that the social network has most of the virtual goods sales from social games using Credits, $700-800 million in annual virtual good sales could be conducted now through Credits. (Worth clarifying here is that Facebook's actual cut of sales of Credits is 30%, leaving the developers the rest.) Analysts expect virtual goods sales to continue to grow, so Facebook could close in on $1 billion in Credits transactions soon. In comparison, Apple's iTunes, which sells digital music, movies and other media, topped $1 billion in sales last quarter. But iTunes has been around since 2003, far longer than Credits.
Another arrow in Facebook's payment quiver: Facebook Connect. Connect's application programming interfaces (APIs) have extended the social network beyond its own site onto other sites and applications across the Web. Basically, your user credentials from Facebook travel with you while you're visiting Connect-enabled sites. Combined with Connect, Credits could enable the holy grail of payment providers -- allowing convenient, trusted, one-click transactions across the Web. This is something even PayPal can't do, as users must authentic themselves on its system each time they make a transaction on a third-party site.
Former PayPal chief operating officer David O. Sacks is doubtful that Facebook will replace PayPal. He argued on Quora that PayPal is a low-cost payments provider because most of its payments are funded from a PayPal balance or bank account, cutting out the funding costs incurred by credit card transactions. Facebook doesn't have all those bank accounts, so it has higher costs associated with transactions. In addition, Facebook takes a 30% cut of all Credit transactions. All this adds up to lower margins for businesses on Facebook.
But Terry Angelos, co-founder and chief product officer of TrialPay, disagrees. "That's like saying that credit cards can't compete with cash because cash is a low-cost provider. Why did over $1 trillion move through Visa, then? Merchants accept Visa not because it's the low cost provider but because it brings them more sales, and consumers use it because it's more convenient." TrialPay is an advertiser network provider built around online payments and is used by Facebook Credits.
Another criticism leveled against Facebook as a payments provider is its lack of experience or expertise in building and running the infrastructure needed to support such systems, especially with regards to fraud detection.
Yishan Wong, a former engineer at Facebook, said on Quora that he "left Facebook after recruiting all the critical people to Facebook necessary for Facebook to duplicate and supplant PayPal. The necessary expertise is now there, I can tell you. It is more a matter of whether Facebook wants to deal with the headache of managing fraud itself, or if it wants to simply pay PayPal to continue doing it for them."
Currently, PayPal is one of the methods you can use to purchase Credits. But Facebook allows users to purchase Credits through major credit cards as well. The company even recently announced it would sell gift cards at Target stores starting this holiday season, so consumers will effectively be able to pay for Credits directly with cash.
Meanwhile, how many of Facebook's 500 million users are payment accounts? More than half of Facebook users say they play social games according to a survey by market research firm Lightspeed Research. In an average social game, only 1-3% of users buy virtual goods, according to Inside Facebook. But Facebook thinks with Credits, that figure can grow to 20%. Doing some back-of-envelope math, Credits may have around 2.5-7.5 million payment accounts. If it can indeed get 20% of users buying virtual goods, which is debatable, then based on current numbers, Facebook could grow to 50 million accounts. Again, for comparison, PayPal currently has more than 100 million accounts.
But even if Facebook doesn't get such high rates of users buying virtual goods, there are other sources of potential growth. Credits is used in other apps on Facebook besides social games, such as on charity pages. In addition, Facebook has an ever-growing population of small business owners supplying credit card information to purchase advertising space on the site. Facebook became the largest display advertiser in the first quarter of this year, with 176.3 billion display ads according to comScore, pulling ahead of rival Yahoo for the first time. Still, if Facebook does get serious about being a payment provider, it will have to do a big push to get users to provide payment information to the social network. That might be tricky given some of the privacy problems it's faced over the past year.
Adam Zagoria is a Basketball and Tennis insider who contributes to The New York Times, NJ Advance Media and newspapers nationwide.He is the author of two books and an award-winning filmmaker. He lives in Manhattan with his family and their dog.
If you use an app that interacts with your orders, then you might experience issues processing orders placed using Checkout on Facebook and Instagram. Your app might need to be updated to use this feature. Learn more about processing orders from Checkout on Facebook and Instagram.
When an order is placed on Facebook and Instagram, a hold is placed on the order and an on hold status displays next to the order in your Shopify admin. This hold allows for Facebook's payment authorization, and fraud analysis, and you can't fulfill the order until the hold is removed. The hold is typically removed within 5 minutes, but might be in place for up to 24 hours.
Regardless of the reason for payment, the scam follows a certain formula: The victim receives a call instilling panic and urgency to make a payment by purchasing Apple Gift Cards, App Store & iTunes Gift Cards, or Apple Store Gift Cards from the nearest retailer (convenience store, electronics retailer, etc.). After the cards have been purchased, the victim is asked to pay by sharing the code(s) on the back of the card with the caller over the phone.
The transition period announced today delays the reporting of transactions in excess of $600 to transactions that occur after calendar year 2022 and the IRS will issue Form 1099-K to taxpayers who have $20,000 in payments from over 200 transactions processed in tax year 2022(the taxes you file in 2023). The transition period is intended to facilitate an orderly transition for TPSO tax compliance, as well as individual payee compliance with income tax reporting. A participating payee, in the case of a third-party network transaction, is any person who accepts payment from a third-party settlement organization for a business transaction.
Additional details on the delay will be available in the near future along with additional information to help taxpayers and the industry. For taxpayers who may have already received a 1099-K as a result of the statutory changes, the IRS is working rapidly to provide instructions and clarity so that taxpayers understand what to do. Check back with the TurboTax blog for more information. There are a lot of rumors and misinformation going around about payment apps such as Venmo, Cashapp or Zelle, specifically when it comes to the IRS and what you will have to pay taxes on.
No, splitting the dinner bill with a friend using a payment app will not result in you having to pay taxes on that money. If you received money as a gift through a payment app you will not be subject to 1099-K reporting.
This is not true, you should still report your self-employment income earned from your online seller business as self-employed were always required to do. If you earn a net income of $400 or more of self-employment income you are required to file a schedule SE reporting your self-employment taxes, which gets filed with your Schedule C and your personal taxes.
Wrong! The change under the American Rescue Plan was to take effect beginning with tax year 2022 taxes but on December 23, 2022 the IRS announced a delay in reporting thresholds for third-party settlement organizations like Venmo and PayPal set to take effect for the upcoming tax filing season. As a result of this delay, third-party settlement organizations will not be required to report tax year 2022 transactions on a Form 1099-K to the IRS or the payee for the lower, $600 threshold amount enacted as part of the American Rescue Plan of 2021. 2ff7e9595c
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