The grey zone created in the European legislation following the diffusion of the resell phenomenon has started to create major problems to many users. Because it’s impossible to track and tax the transaction throughout Paypal, they had to take action to avoid complications. After announcing to remove the buyer protection for reselling products, Paypal decided to take another step forward to protect itself from fines and controls. Many accounts were closed for the suspected activity of buying and selling for commercial purposes.
After this drastic choice, StockX, the commercial partner of Paypal, decided to introduce new functions to their marketplace, by implementing new payment methods and payout tracking. StockX will launch a new platform supported by Hyperwallet, a service still in partnership with Paypal. For accessing these new functions, coming up in the upcoming weeks, the users will have to verify their payout information if they want to be paid straight away. In this way StockX is protected from the European regulations on the recycling of money. What about private sellers? After reaching €2.500 of payout StockX request to upload a picture to prove your address.
