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Using Paypal for payments?

Okay, newish to this comm and asking for advice, since the original convo that confused me was found here. If you click the "company-Paypal" tag you'll see the one I am talking about.

I've recently begun taking commissions, and I have heard here and elsewhere that proper protocol for accepting payments is to ask the commissioner to use the payment owed option. However in the convo, it seems using that 'too much' can get your account locked, and other people also disagreed with it for some arbitrary reasons I can't discern?

Now, I don't often send payments through paypal myself and when I do there is an invoice so I don't have to really do much except click pay, but I am wondering, am I doing the right thing here? How should I recommend my commissioners send their payments to me if not via the Payment Owed option?

I know that you can NOT ask for payments via the gift option, and as far as I know the Payment Owed option is the only way to ensure that that person would have the ability to file a claim, which I hope never happens, but I want people to have the option to if they feel its necessary.

So, what is the best way to recommend your commissioners send money to you when using Paypal? I don't really care about fees since all my commission money is extra money not bill money as it is for some people, so that is not too much of a concern as long as they don't take like $5 a payment or something.

Once again: I do not care about the fees. I am not trying to get people to cover the fees. I don't know how people started thinking I am. All I want to know is what to recommend they do when they send money to me, and is what I am doing right now, asking them to send it as payment owed, okay.

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( 37 comments — Leave a comment )
Aug. 15th, 2010 06:13 pm (UTC)
I've never heard that using "Payment Owed" too much is a bad thing. I've heard that about the GIFT option, however. I've never seen any official confirmation of this.
Aug. 15th, 2010 06:52 pm (UTC)
gift = doesn't let you ask for your money back if trouble happens.
also It is blocked in certain countries now (my own included).
(no subject) - foxhack - Aug. 15th, 2010 07:01 pm (UTC) - Expand
(no subject) - cesarin - Aug. 15th, 2010 07:14 pm (UTC) - Expand
Aug. 15th, 2010 06:40 pm (UTC)
I've taken a ton of commissions and donations, and have never had any issues with Paypal. The two times in which I've heard a Paypal account was suspended and locked was when the user was accepting pre-order money from customers without having a product yet. In both cases, neither dispute has been resolved despite a lot of talking to Paypal and even providing direct proof that every preorder item had been delivered...

Basically, don't ever do preorders.
Aug. 15th, 2010 06:52 pm (UTC)
One of those situations would be the HINABN books last May, right? I feel so bad that I haven't been able to get the payment for those books to Tessa yet :(
(no subject) - alexds1 - Aug. 15th, 2010 07:17 pm (UTC) - Expand
(no subject) - kyrahlynn - Aug. 16th, 2010 01:00 am (UTC) - Expand
Aug. 15th, 2010 06:44 pm (UTC)
Pretty much, you don't used anything under the "personal options". "Gift" being the worst one. I'm pretty sure all of those take off fees on the artist, or take fees off completely.

When I tell people my paypal, I tell them "Please do not send it as a gift or any personal options". That way they used things like "goods" and "services".

Some people don't quite listen, but it ensures most do and makes sure you don't get in trouble.
Aug. 15th, 2010 07:40 pm (UTC)
So is it alright to specifically ask them to use "Payment Owed"? cause I dunno what tab that is under, its been over three months since I sent money on paypal without an invoice.
Aug. 15th, 2010 07:00 pm (UTC)
Paypal fees are, honestly, very small. They're something like $3.30 for a $100 payment. And its againt TOS to take a personal payment for a product, or to charge a customer. It's safest to just accept the fees, or slightly raise your prices across the board, for any payment type accepted.
Aug. 15th, 2010 07:11 pm (UTC)
Asking buyers to use Personal Payments or asking them to pay the Paypal fees is not only against the Paypal TOS, but they have been cracking down on that a lot lately. Which means seizing your funds and your account and not giving the funds in your account back to you if they determine you violated the TOS. And like silverfalln said above, the fees are very small, esp when you compare them to standard mercantile account (credit/debit card) fees which are from 4.25% to 7.5% per transaction. Either eat the fees or charge slightly more for your work to compensate, and make sure your buyers don't use Personal Payment options when sending you money for goods or services (commissions).
Aug. 15th, 2010 07:31 pm (UTC)
I never said I was asking them to do other things, in fact I said I wasn't concerned about paying fees o.O
I just was wondering what option to recommend them to use when they send money to me. I don't know if Payment Owed is under personal or not.
(no subject) - oceandezignz - Aug. 15th, 2010 07:47 pm (UTC) - Expand
(no subject) - astraldescent - Aug. 15th, 2010 07:49 pm (UTC) - Expand
(no subject) - oceandezignz - Aug. 15th, 2010 08:04 pm (UTC) - Expand
(no subject) - astraldescent - Aug. 15th, 2010 08:06 pm (UTC) - Expand
(no subject) - mandyseley - Aug. 15th, 2010 08:18 pm (UTC) - Expand
(no subject) - spiffystuff - Aug. 15th, 2010 09:55 pm (UTC) - Expand
(no subject) - mandyseley - Aug. 15th, 2010 10:32 pm (UTC) - Expand
(no subject) - jurann - Aug. 16th, 2010 06:28 am (UTC) - Expand
(no subject) - silverfalln - Aug. 15th, 2010 11:00 pm (UTC) - Expand
(no subject) - oceandezignz - Aug. 16th, 2010 01:01 am (UTC) - Expand
(no subject) - silverfalln - Aug. 16th, 2010 01:07 am (UTC) - Expand
Aug. 15th, 2010 08:06 pm (UTC)
i'm gonna use examples in my explanation here to make it as clear and easy to understand for anybody else who might wonder; screwing up with paypal can have pretty bad and unwanted consequences of many degrees, let's spare ourselves that, shall we? :)

nothing in the "personal" tab gives you any buyer's protection, as they are not business-oriented options.

let's say you go to the reataurant with a friend one day. oops, you don't have any cash on you, turns out they don't take plastic. friend covers your bill for you, and immediately, you get to a computer and transfer him the amount for the bill from your paypal to his.

admittedly, our two friends here are geeks who make purchases online and both have a paypal. ;)

but see, this example here is a "Payment Owed". the money you're sending him isn't a gift, nor for a product or service you're getting from him. you're just clearing a debt!

the second there is an exchange of goods or services for your money, stick to the appropriate "Business" section. not only is it the proper thing to do according to the big book of paypal's rules, it also puts you under seller/buyer protection for 45 days, were you to one day deal with someone worth talking about in this community. ;)

hope that helps!
Aug. 15th, 2010 08:39 pm (UTC)
Aw, I wouldn't take it too personally that people went off on a tangent. Often the advice threads are also used to share related information as a resource for other community members. I'm sure no one meant any harm by it.

Other than that, looks like you got your answer, so I wish you luck navigating everything.
Aug. 15th, 2010 09:01 pm (UTC)
You know, on a related note:
I commissioned someone who insisted I not pay via the goods/services option and that I not put anything in the notes that would imply a business transaction because she'd get in trouble with PayPal since she doesn't have a Business Account with them.

I haven't been able to find anything on the PayPal site that says anything about not being allowed to receive money for a good/service unless you have a business account. Does anyone know if there's any truth to that? 'Cause I've accepted money for commission work via PayPal and I don't have a business account.
Aug. 15th, 2010 09:56 pm (UTC)
That really doesn't sound right. To my knowledge the only thing a business account lets you do is give out a business name/address instead of your own real name / address :P
(no subject) - wildehund - Aug. 15th, 2010 10:00 pm (UTC) - Expand
(no subject) - silverfalln - Aug. 15th, 2010 10:59 pm (UTC) - Expand
(no subject) - startide - Aug. 16th, 2010 03:42 pm (UTC) - Expand
(no subject) - mandyseley - Aug. 16th, 2010 01:19 am (UTC) - Expand
(no subject) - jurann - Aug. 16th, 2010 06:30 am (UTC) - Expand
(no subject) - wildehund - Aug. 17th, 2010 02:48 am (UTC) - Expand
Aug. 15th, 2010 09:06 pm (UTC)
Digital only commissions: Services
Mailed commissions: Goods

I don't let people send me money any other way unless it actually is a personal transaction.
Aug. 15th, 2010 09:46 pm (UTC)
The safest way was already described above. Tell them to use the purchase option. Some artists adjust their prices accordingly to account for the Paypal fees, usually when they only deal with Paypal so they don't break the TOS.
Aug. 16th, 2010 06:15 am (UTC)
I'm with the above, Goods or Services option only. The only time I've used personal is when it genuinely has been a personal payment (and always to the same person, my friend).
( 37 comments — Leave a comment )


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