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Warning to artists and comissioners using gift on paypal.
10 years ago
Saw this on Artist Beware today. Thanks a lot to Snobahr for pointing this out.
There's been a change in paypal user policy recently:
8. If you violate the PayPal Acceptable Use Policy, then in addition to the above actions you will be liable to PayPal for the amount of PayPal's damages caused by your violation of the Acceptable Use Policy. You acknowledge and agree that $2,500.00 USD per violation of the Acceptable Use Policy is presently a reasonable minimum estimate of PayPal's actual damages considering all currently existing circumstances, including the relationship of the sum to the range of harm to PayPal that reasonably could be anticipated because, due to the nature of the violations of the Acceptable Use Policy, actual damages would be impractical or extremely difficult to calculate. PayPal may deduct such damages directly from any existing Balance in the offending Account or any other Account you control.
TLDR: If they catch you dodging paypal fees with the gift option when you're paying for services, there's a risk they will charge you $2500 USD per violation. This is a lot of money, but paypal can't be arsed or be sure how much you'd dodged. One thing is for sure- they really want people to stop doing it..!
I'm sure this is used for one big reason. One is that in recent years the IRS has REALLY been slamming the book down on online tax evasion. I know in recent years on Second Life, if you didn't declare your sim donations on your tax returns you'd lose your sims! and a lot of people opted to lose them.. because a LOT of people made tons of money that way, I promise you.
Therefore, using invoices is a really good idea. Thanks to all the people who have comissioned me recently who have allowed me to play around with invoices- and if anyone needs help figuring them out, A_B is often helpful in handling questions and I'm more than willing to help out.
Be safe ya'll.
There's been a change in paypal user policy recently:
8. If you violate the PayPal Acceptable Use Policy, then in addition to the above actions you will be liable to PayPal for the amount of PayPal's damages caused by your violation of the Acceptable Use Policy. You acknowledge and agree that $2,500.00 USD per violation of the Acceptable Use Policy is presently a reasonable minimum estimate of PayPal's actual damages considering all currently existing circumstances, including the relationship of the sum to the range of harm to PayPal that reasonably could be anticipated because, due to the nature of the violations of the Acceptable Use Policy, actual damages would be impractical or extremely difficult to calculate. PayPal may deduct such damages directly from any existing Balance in the offending Account or any other Account you control.
TLDR: If they catch you dodging paypal fees with the gift option when you're paying for services, there's a risk they will charge you $2500 USD per violation. This is a lot of money, but paypal can't be arsed or be sure how much you'd dodged. One thing is for sure- they really want people to stop doing it..!
I'm sure this is used for one big reason. One is that in recent years the IRS has REALLY been slamming the book down on online tax evasion. I know in recent years on Second Life, if you didn't declare your sim donations on your tax returns you'd lose your sims! and a lot of people opted to lose them.. because a LOT of people made tons of money that way, I promise you.
Therefore, using invoices is a really good idea. Thanks to all the people who have comissioned me recently who have allowed me to play around with invoices- and if anyone needs help figuring them out, A_B is often helpful in handling questions and I'm more than willing to help out.
Be safe ya'll.
I understand alot of people dont like loosing a profit on their sales, but Paypal seriously doesn't take that much from you, like $1-$5 or so depending on how much is being transferred. Its a VERY SMALL hit so that paypal can make money and stay alive to offer its wonderful service.
I like invoices myself. It puts it in my paypal and I can pay it whenever I'm ready. :)
I think another important fact for the invoices is that it offers a lot more buyer protection- if you send as a gift and you never get your commission, well you're kind of screwed. I think it's just respectful to the people you're working with as an artist to do it this way.
Yes, honestly I think unless you are sending a concerning amount of payments and gifts, or very large payments as gifts, it isn't going to hurt people who still use gift. At the same time, it's such a small payment to be avoiding for such a big risk. Not just the risk of that fee, but tax evasion and buyer/seller protection too.
If you are a buyer and you send something as a gift, you have absolutely no protection from paypal if someone doesn't deliver what you agreed on. I see so many people getting screwed over by artists and they can't do anything about it because they paid as a gift, and other people who are grateful they sent the payments as services and can dispute it with paypal and get their money back. Anything that offers more security to me or people who commission me is the best method imo.