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Just a note that the Classifieds Rules have had a slight update/addition.
http://windstoneeditions.com/content/classified-ad-rules-guidelines
The changes, in particular:
9) When using PayPal, you must not request a “personal payment” in exchange for services or goods. Some sellers may feel that this is an easy way to avoid PayPal fees, but it is against PayPal’s Terms Of Service when used to exchange money for physical items or services (i.e. commissions or repairs).
10) When using PayPal, you must not add a SEPARATE, additional cost “to cover PayPal fees” Requesting that a buyer pay fees seperately is against PayPal’s Terms of Service. As a seller, you are responsible for those fees. Examples:
NO: “The dragon is $100, +$10 shipping, +$10 to cover my Paypal Fees.”
YES: “The dragon is $110 +$10 shipping.”
Notice the seller receives the same amount in both situations, but the fees are not listed as a separate cost to the buyer in the acceptable example.While only PayPal has the authority to enforce their Terms of Service, we will not allow listings that break the above rules, for the safety of all (buyers and sellers alike).
And the following suggestion has been added for buyers:
When using PayPal, don’t send “personal payments” when buying goods or services. PayPal only protects you as a buyer if you pay for items by paying for “Goods”. Never send a “personal” payment through PayPal if you are buying an item. It is also a violation of PayPal’s Terms of Service.
Hopefully this will help those that are not familiar with some of the nuances of PayPal to avoid being taken advantage of! You really, really should never send Personal Payments unless you are sending a gift (like: “Happy Birthdy Jimmy, here is $30 so you can eat out tonight!”) or money owed (like: “Here is my half of rent this month, roomie.”). Even if the person you are sending to is a friend or trusted! PayPal can close one’s account if they discover you taking “personal” payments in exchange for items or services.
If you have any questions or concerns, feel free to comment below.
Volunteer mod- I'm here to help! Email me for the best response: nambroth at gmail.com
My art: featherdust.comJennifer wrote “PayPal can close one’s account if they discover you taking “personal” payments in exchange for items or services.” This is true, however people can and do choose to send “personal” payments for items.
Is the seller expected to take any action (such as refuse the payment) in such cases?
Jennifer wrote “PayPal can close one’s account if they discover you taking “personal” payments in exchange for items or services.” This is true, however people can and do choose to send “personal” payments for items.
Is the seller expected to take any action (such as refuse the payment) in such cases?
That is up to the seller. According to the strict interpretation of PayPal’s rules, yes, but what you do in reality is your choice. We aren’t going to police people’s PayPal activity (we can’t even if we wanted to). A good way to avoid this scenario as a seller is to send your buyer an invoice (paypal makes this easy). This is also great for record keeping. I highly recommend it.
Volunteer mod- I'm here to help! Email me for the best response: nambroth at gmail.com
My art: featherdust.comGood to note. Thank you!
You can check out my work on dA & Redbubble!
https://prezaurian.deviantart.com/
https://www.redbubble.com/people/prezaurian?ref=artist_title_nameI’ve always chosen to accept personal payments when a customer chooses to send money that way, though I also always send a note advising them that in the future they shouldn’t do so, for their own protection. So far I haven’t had any problems.
Paypal is unlikely to notice unless the majority of your payments are arriving this way or unless somebody complains after not receiving their items. So as a seller, if you’re being ethical the risks are small. As a buyer, though, it’s a terrible idea and nobody should ever do it!
I never really gave it much thought, but I see the point about the protection for the buyer.
Question: if one is buying an item and wants to send money as “payment for goods or services”, I presume I would use the following formula if the seller had initially asked tor money to be sent “friends and family”?
Asking price + (Asking price x .029) + .30 + shipping and handling cost= total amount to sendThat way, after Paypal deducts seller fees, the seller gets the total amount they initially asked for, correct?
And if selling, to send an invoice, do you simply need their email address in order to create an invoice?
Really it’s on the seller to bundle the Paypal fee INTO their asking price, a seller really has no right to ask that their fees be paid by the buyer. All of this is a HUGE no no in the model horse community. When I see an ad asking that I pay their fees I immediately know that I won’t be doing business with them no matter how much I may like what they’re selling.
I’m glad this has been addressed, people should know it’s in their own interest to always send their money through the goods and services(If they’re buying something that is), that way if something goes wrong Paypal can help them with a refund, if needed.
*Formerly meowmix101
Not currently open for PYO commissions.^^^ Hopefully, this will become the standard operating procedure going forward in the classifieds. All sellers include their cost in the asking price and, while not technically necessary, I can’t see a downside to sending an invoice. It just seems so logical.
Actually, I just thought of another advantage to sending invoices. That way there is NO possibility of a buyer messing up an email address and sending the money to the wrong person. I am always just a smidge paranoid about that. 😉
One thing I never have been clear about – how does receiving payments affect your PayPal account classification?
I have heard that you must switch to a business account if you receive more than a certain amount in payments for “Goods and Services”, but I have not been able to verify that.Thanks for these clarifications and comments… I’ve only really used the PayPal ‘send to’ feature for mainly items I’ve bought from this forum. All my other PayPal dealings have been in conjunction with eBay purchases.
IN SEARCH OF MY NEXT GRAILS:
Black Peacock & Butternut Adult Poads
Kickstarter 'Rainbow Tiger' Bantam Dragon*~*~*~* Ela_Hara: The DragonKeeper *~*~*~*
*** Come visit me on deviantArt at http://ela-hara.deviantart.comAnd if selling, to send an invoice, do you simply need their email address in order to create an invoice?
Correct. If you do send an invoice to the wrong email, the only thing you need to do is double check with your buyer and re-send it. The worst case is that the invoice goes astray with the wrong email. Flip the situation and the MONEY can go to the wrong place– that’s a nightmare. I’ve done that before. Yikes! Invoices are much safer. They are, as mentioned, really great for record keeping too, especially those of us that are self employed and pay income taxes on these transactions.
Volunteer mod- I'm here to help! Email me for the best response: nambroth at gmail.com
My art: featherdust.comQuestion: if one is buying an item and wants to send money as “payment for goods or services”, I presume I would use the following formula if the seller had initially asked tor money to be sent “friends and family”?
Asking price + (Asking price x .029) + .30 + shipping and handling cost= total amount to sendThat way, after Paypal deducts seller fees, the seller gets the total amount they initially asked for, correct?
That would be very generous of a buyer, but no. It is the SELLER’s responsibility to roll their fees into their asking price.
This is the same principle as going shopping at a store with your credit card. The place that you buy from is paying merchant fees on every transaction, but they have adjusted their product markup so that they don’t lose money on those fees. Could you imagine how awful it would be if you stood at the checkout and had to get charged an additional % for your transaction?Really it’s on the seller to bundle the Paypal fee INTO their asking price, a seller really has no right to ask that their fees be paid by the buyer.
Correct!!
Volunteer mod- I'm here to help! Email me for the best response: nambroth at gmail.com
My art: featherdust.comOne thing I never have been clear about – how does receiving payments affect your PayPal account classification?
I have heard that you must switch to a business account if you receive more than a certain amount in payments for “Goods and Services”, but I have not been able to verify that.That’s possible… I regret that it’s been so long since I’ve had to deal with this, that things may have changed. You’d probably have to search the FAQ on PayPal’s official page to find out. I don’t think so though; I do a healthy amount of business on mine, but understand that business accounts are more for businesses with more than one (self-employed) employee. From their site:
PayPal account types – Personal account
Shop, receive money, or just pay someone back for lunch. All without sharing your payment info., a Personal account is probably for you.
You can use a Personal account to:
Repay a friend for your share of lunch.
Buy a book online.
Accept debit or credit cards.
Apply for the PayPal Debit Card.
Accept PayPal for the items you sell on eBay.PayPal account types – Business account
Accept all major credit cards online or at the register. Send secure invoices to your customers. We recommend Business accounts for online merchants who operate under a company or group name.
A Business account has all the features of a Premier account and more. With a Business account, you can:
Operate under your company or business name.
Accept debit card, credit card, and bank account payments for a low fee.
Allow up to 200 employees limited access to your account.
Sign up for PayPal products that meet your business needs, such as Express Checkout.
Set up a separate email address for your customer service issues.Volunteer mod- I'm here to help! Email me for the best response: nambroth at gmail.com
My art: featherdust.com
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