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onisuu — Invoice Guide for PayPal
#guide #invoice #paypal #how
Published: 2017-01-13 06:37:20 +0000 UTC; Views: 148218; Favourites: 2020; Downloads: 767
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reblog on tumblrscreenshots from www.paypal.com
Hello! Since I have received some questions about how to go about using invoices on paypal, I labelled some things from a screen cap of the pages to hopefully guide artists on how to create and send an invoice to their customers/commissioners.
I have a business account on paypal, so I apologize if some of the screenshots look different from what it looks like for a personal account. ^-^
You can hide your address under "My business information": click edit, and under Address, select "Don't show on invoice".
*note* the paypal fee is actually about 4% but I rounded it up to 5% in this guide, because sometimes the fee is a little higher if the customer is outside of your own country so rounding up helps account for those situations. Basically, the take home message is -- increase your advertised prices instead of asking your customer to pay EXTRA on top of what was advertised. It's against the PayPal TOS to make buyers top up and pay the fees as a surcharge on top of a product's price.
reference>> From Section 8 of PayPal User Agreement
"For Purchase Payments, the recipient of the payment will always pay the Fee."
- The artist is the recipient of money from the customer, who is paying for the artist's services.
Also, you can choose to increase your commission prices to even numbers so they look neater and less random. (like $20 instead of $19.73)
Here's a guide to Buying Art with PayPal (paying for a service)
Related content
Comments: 358
I'm happy it's helpful! ^^
I have also heard about it but I never experienced it first hand or talked with someone who had it happen to them.
The safest approach is to send invoices to your customers. After you complete the commission, I would mark it as "order processed" as outlined in the lower portion of this guide.
Make sure you write in your terms of service that:
1. the customer is paying for "digital art"
2. the customer will not receive any physical item in the mail from this purchase
3. the customer will only receive a digital copy of the artwork that is custom-made to their order
4. When the customer pays this invoice, they acknowledge that they understand and agree to your terms of service
So, if the customer makes a false report against you later on saying they didn't receive the art, you can protect your case by showing proof of the artwork, when it was delivered to the customer, screen shots of the order that they made to you, and screenshots of your invoice and terms of service
These evidences can support your side of the story when you have fulfilled the customer's order and they try to claim money back from you wrongfully after receiving what they ordered.
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I've only started accepting commissions recently and this guide of yours is really helpful!
Thank you for this!
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thank you ,the tutorial helped me a lot , i did everything you said in the last step ,i choosed order processed but when i entered submit it shows me this message
We're experiencing technical difficulties
We're sorry for the inconvenience.
do you have a solution for this
Thank you in advance
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I'm glad it helped! You'll have to try again later, it could be that Paypal is updating or there is something with the site connection at the moment.
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I currently have the same the same problem! Someone commissioned me a year ago and I totally forgot to update the order as processed! I tried updating today, but I get the same technical difficulties notice. Were you able to resolve yours, mariam246810 ?
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i could't solve it at the beginning,i talked with paypal staff for a few days but nothing worked ,until i received a new commission and when i tried to change the order statue it worked with no problem ,i don't know why yet ,try to talk to the staff they may solve it
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Is it a requirement to create invoices for digital services? My account has been locked for 21 days just because I received a payment with the recipients address, will I be able to avoid that if I ask others to avoid including it?
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PayPal informed you that was the reason for locking the account? It seems odd that just having the address included resulted in a lock -- the client didn't file some kind of dispute or anything? If you were previously asking clients to send you the payment, they might have chosen "send money as gift" which could result in a lock if PayPal finds the amount given was actually in exchange for a service (maybe there was a memo included with the money that mentioned the art order)
In any case, it doesn't hurt to send invoices for digital art, and you can also select 'don't show shipping address' after you put in the client email and click the "ship to" button
With invoices, you'll control how the money is requested (and invoices inherently mean the money is for a service or product, and the memo is written by you if you decide to included one)
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I've never asked for clients' address since it's only a digital good/service, but when they pay, but it'll show their address and PayPal gives me the shipping option buttons. I don't select anything but will they fine me for a "non-existent" physical item?
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They won't fine you unless the client files a report that they didn't receive their purchased item, so pretty much you are not in any risk.
What you can do to further protect yourself (in case such a report actually happens) is to clearly state in your terms of service (which can be added to the invoice in it's own section) that the client is purchasing a custom digital artwork, wherein no physical item will be shipped to the client after completion. The client will only receive a digital file of the art.
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Thank you so much! I just added that part to my invoice but it makes me relieve to know that. 😊
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Thank you SO MUCH!! This is such an in depth guide!!
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I have a personal one. Can I still sell my work?
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Hi! Is it allowed to change the tracking info to "order processed" even though there was no shipment that happened? Is it legal to do that? 
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Yes, because once you've finished the art and give it to your client, you have processed the order.
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There is no "No shipment required" option when I create an invoice, and recently a payment was on temporary hold by PayPal because they are reviewing the shipment details ((Super inconvenient)). I just want to solve this invoicing problem 
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Question about the last item. Let's say I followed the instructions. How can I check that the tracking information has been saved and everything is OK? It's important. Thank you in advance!
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After you have finished the commission, click on the transaction details and you can choose to edit the tracking info. Then choose order processed and click save. When you look at tracking info again from the transaction details page, you can see it still shows order processed ^_^
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Oh, I did not notice it at first, now I see. I heard that if you do not fulfill the last point («order processed»), there will be some serious consequences. I was overly worried. Now I calmed down a bit, thank you for the help!
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I think it's best to use an invoice for any amount, since the invoice will 1) request the exact amount to send to the artist, 2)outline any terms of service from the artist prior to you paying for their services 3) the artist may allow you to do partial payments if it's an especially large amount to pay - a setting that is available for invoices
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Hello!~ I've been meaning to start commissions for a while but then I always get held back when I start thinking too deeply and question a lot of things.
Like, right now, my main question/concern is, how do you deal with international/(clients who live out of country) money on paypal,? Like literally, just tell me everything you know.
Some certain questions about it specifically is, if the client is international and commissions/pays us, what happens? If we're using invoice, is their money automatically converted? How is the paypal fee dealt with? What about paypal.me, I recall that you can set up the type of currency, like (USD)? //I dont really know how else to word the questions better, I apologize. I just get really overly-anxious and start questioning things. Just tell me everything you know
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Hi!
With an invoice, you can set the type of currency that you want to receive.
So if you use USD, just put USD as the currency. Any conversions will be done on the client's end, and you just receive the amount that you listed on the invoice (minus paypal fees)
The paypal fee will vary slightly depending which country the client is paying from, but generally, the amount that will be taken from the payment sent is about 4.5% - 4.9% (approx 5%)
So if someone paid a $1 invoice, you will receive $1 - (5% of $1) = $0.95
Sending an invoice to a client anywhere in the world is exactly the same process -- you just need their email so you can send it to them.
You can start doing commissions that are smaller to test the waters first
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Thank you, your explanation helped me a lot and yes, I will do small ones to see how things turn out ^^
Also, what if we want to refund a client?
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You can issue refunds from paid invoices ^_^
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Thank you alot! I got a question, will this invoice protect us from scammers? Like some buyers did receive our art, but they claim that they didn't and ask paypal to refund the money, will paypal refund them or not?
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Hi ^^ I put together a journal about all the charge backs scammers I've been hearing about recently, and was wondering if the "Order Processed/Service Rendered" really protects against these from going through since digital goods aren't protected by PayPal
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hi, I can't say for sure that just marking the invoice as "order processed/service rendered" protects against chargebacks, but it's good form to have your transactions properly marked as processed as soon as you finish them.
In the case of a chargeback, you will need evidence to back your counterclaim.
You should be able to provide screenshots of the transaction agreement between you and the client in case a chargeback does happen.
You should be able to show that the client provided their paypal email to you for the purpose of receiving the invoice,
the invoice should have a Terms of Conditions written out outlining that the payment is for a digital art work that is custom made according to their order and no physical item will be shipped to the client,
and when the client pays for the invoice, your TOS should say they are agreeing to your terms and conditions
The Terms should also outline your Refund policies and how they will be handled.
If a charge back happens, I think paypal will process that first (so you lose the money) and then you have to contact PayPal to counterclaim.
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Thank you very much! I will be certain to keep all of this in mind ^^
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ahh i hope this is still accurate! im starting my commissions again and i really wanted to know how the tracking stuff effects me
thank you!
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ok nice!! ^^ It's current to the layout you'll see!
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Thank you so much for this! I'm literally using it to make an invoice right now. ^_^;;;
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This is my first time doing a digital art commision. If its digital art do you send it as an attatch file in the invoice? Or you send it through email?
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hi! generally, you could send the art the same way that the commissioner contacted you for the art. Email is always a great option
The invoice is only for the payment, not for sending art work ^_^
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Hello! I'm having the same problem with the comment below
I remember the add tracking info was there but it suddenly disappeared?
Does it still appear on yours?
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hi moon! i'll try taking a new commission and see if the option is still there. I'll get back to you asap ^_^
On my older transactions, it still shows tracking info, but I'm gonna see how a new transaction looks :3
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Same on my older transactions I used to have that but the newer ones are just gone...
and I think I found it ;;A;;
after a bit of panicking and frustration over why paypal has to do this updates @>@
> I couldn't get a screenshot of what's the next page but it has a "Add Tracking Info" near the name of the buyer.
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Aw gosh they just change stuff all the time @_@
Ah good I'm glad you could find it again after clicking those links! I'll try it on my next transaction ^^
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Hello! I have a question QwQ
I can't seem to find the add tracking info in the transaction details;;;
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Hiya if you go down to edit tracking info it should prompt you the page of the order information go down to the bottom of the page and it should say edit tracking info once more this will prompt the order to change to shipping and order processed once you select and enable the tracking not needed you'll be all set
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hi! has the client paid for the invoice yet?
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Ah so strange, I tried looking for a way to view the invoice details with the old classic PayPal layout but there are no links for that now *_*
Well, as long as you've sent the art to your client then you'll be okay (you can provide a screenshot/link to the finished art in case there is a chargeback issue /which is very unlikely ^_^ ) hopefully for the next transaction it'll show the tracking info link *0* ))
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