PayPal Disputes and Claims Contingencies
Hello, everyone! Lately I’ve been hearing stuff about the use of PayPal Disputes and Claims when it comes to art commissions. After getting feedback from people, including those from PayPal, there are contingencies that the Artist and Client can use to protect themselves during a Dispute and Claim in regards to a digital art commission, the most common form of art commissions nowadays.
Remember, this only applies to Artists and Clients who have good intentions. Artists and Clients who are actually trying to act maliciously, please reevaluate yourselves because that’s rather low. I’m not trying to be biased because anyone can get legitimately screwed over, whether you’re the artist or the client.
Contrary to popular belief, INVOICES ALWAYS ENSURE BUYER PROTECTION TO THE CLIENT, regardless if a shipping address is provided or not. Has been so since 2015 because of the rise in popularity of purchasing digital goods, and it’s on PayPal’s website; plus, a PayPal representative has confirmed that it does so.
A client (the buyer) can file a Dispute to PayPal’s Resolution Center after paying the Invoice but they have 180 days to do so or else they lose that privilege. What happens is that PayPal will hold the payment from the artist in escrow until the Dispute has been fully resolved within 20 days. A Dispute happens before it can escalate into a Claim, which again, can be done within 20 days after opening a Dispute. Basically, a Dispute is giving an ultimatum to the seller (the artist) that, “Hey, we need to figure something out or else we’ll actually have to get PayPal involved.” and it’s immediately alerted to them. It’s PayPal’s way of letting the client and artist sort it out on their website, but they don’t involve themselves in it.
If the Dispute is resolved within 20 days after it has been filed, either by getting a refund, partial refund, or the commission being finished during that timeframe and both parties agree to the terms, then it can be closed and the artist is reimbursed (that is they fulfill the commission). However, if the client or artist is unsatisfied on how to compromise before the Dispute is closed, or if the artist doesn’t respond back in a timely manner, then the client can escalate it into a Claim, as long as they didn’t exceed the 20-day period or else their Dispute is closed and they can’t file for another Dispute or Claim anymore. Remember that this a time-sensitive case. Don’t use it up.
During a Claim, PayPal will intervene and assess the situation. Initial Claim process is 40 days, and seller response is 10 days. Both parties will now provide their evidence during the Claim period. Usually it can take days or even close to a month to resolve, depending on the complexity of the case. PayPal’s Security Experts will review all of the evidence from both parties, and ultimately will side with either the client or the artist based on who was more truthful. Again, a time-sensitive situation.
To start off, I will be addressing on when it’s highly appropriate for clients to file for a Dispute/Claim.
Before I go on, I just want to say, NEVER SEND PAYMENTS THROUGH FRIENDS AND FAMILY TO THE ARTIST BECAUSE YOU WON’T BE ELIGIBLE FOR BUYER PROTECTION, AS WELL AS FILING A DISPUTE/CLAIM!!!!!! Friends and Family is basically giving money to the artist for free with nothing in return, and if you do send it through that method and the artist happens to stiff you in the end, then good luck getting your money back, as callous as it sounds. ONLY DO SO IF YOU COMPLETELY TRUST THE ARTIST BUT KNOW THE RISKS, AND BE WARY OF ARTISTS WHO ONLY ASK FOR PAYMENT THROUGH FRIENDS AND FAMILY!
That’s why Invoices always offer Buyer Protection and the eligibility to file a Dispute/Claim, and it’s the primary method of payment that artists use in online commissions.
Also, clients, please ensure that you contact the artist before deciding to go forward with a Dispute/Claim. That way, you can address your concerns to them, because remember, misunderstandings do occur, and you can possibly work things out with them to reach a solution. Be cooperative, is all. PAYPAL EVEN RECOMMENDS TO CONTACT THE ARTIST BEFORE DECIDING TO FILE A DISPUTE/CLAIM! REMEMBER, YOU HAVE A 180-DAY TIME PERIOD, WHICH IS PLENTY OF TIME!
If you ever file a Dispute/Claim within days, a few weeks, or heck even a few hours after sending the money to the artist, or after the commission is completely finished in a timely manner, then you are pathetic and a schmuck, sorry to say. They dedicated their time and effort on the commission and kept true to their word in a reasonable fashion. Please never do that.
So, here’s a scenario of when it’s highly appropriate to file a Dispute/Claim within the 180-day time period:
Say you’ve paid for an art commission that entailed to a full body *insert character* with detailed colors through an Invoice, and a week later you get a sketch as the update. Things go well, and the artist says that they’ll update you again soon. However, a month goes by and you receive no update or word back from the artist, and you noticed that they’ve been doing their own art along with accepting new commissions even though you were prioritized first as agreed upon. At that point, contact the artist, but remember to be polite and respectful, and say,
“Hello there! I was just wondering about the status of the commission because it’s been a month after getting a word back from you, even though I was told that I’d be updated again shortly. If you can respond to me at the earliest convenience then that’d be much appreciated! Thank you for understanding!”
Give the artist some time, like say a week or two, but if they still don’t respond to you after trying to get ahold of them, try one more time.
“I don’t know what’s been going on in your life but I really want to know about the status of the commission since I’ve waited patiently enough, and it looks like that you’ve been doing your own thing during that time. Please try to contact me as soon as you can because I don’t want to take this up with PayPal, truly.”
If you don’t get a response after a week or so, then now it’s the time to file a Dispute.
Again, should the Dispute resolve your case with the artist before the 20-day period ends, then alright, but if it doesn’t because the artist is blatantly ignoring you, refusing to work with you, or in extreme cases, blocking you, then it’s appropriate to file a Claim so as long as it didn’t pass 20 days.
Make sure to have all of the conversations regarding on the commission, the description in the Invoice, due dates, inconveniences, delays, what you’ve specified for, and where the visual descriptions of the status of the commission is being given to you since it’s a digital good (email). Paypal will now review the case and analyze all of the evidence that was provided. If they side with you, then you get your money back, and the artist in question may possibly be penalized depending on the severity of the case, especially if they have other Disputes/Claims held against them.
Also, make sure that the email in which you’re getting the status or finished product of the commission is also the same one in which you did the Invoice payment.
Others scenarios such as the artist not even doing any progress of the commission after months of waiting patiently, contacting you but continuing to dodge you afterwards when you’ve voiced your concerns or blocking you will strengthen the success rate of your Dispute/Claim. Again, you’ve paid them for a service that they promised to fulfill in a timely manner, just be sure that you don’t jump to conclusions so suddenly. HEAR THE ARTIST OUT FIRST!
To recap, give the artist enough time to progress on the commission (a month wait for example, and possibly more for good measure but don’t let it reach close to the end of the 180-day period), contact the artist before filing a Dispute/Claim, give them time to respond, and take action if they’re doing things that you find highly unsettling during that time.
Do not file an unfair Dispute/Claim on the artist, please! It’s bad enough that clients have a bad rep in art commissions as it is.
Artists: Should you ever get a Dispute/Claim filed against you, even though you’ve been consistent in communicating with your client and updating them on the progress of the commission, or have finished it in a properly manner, do not fret or be discouraged because YOU CAN FIGHT BACK AGAINST A DISPUTE/CLAIM! I’ve contacted a PayPal representative and she informed me that if the artist has enough credible evidence that they were true to their word, then the Claim against them CAN BE COUNTERED!
Here’s a scenario of when that’s the case:
A commission is still in progress, and the client has agreed to getting the updates through their email, consenting to changes in the timeframe of the commission, agreeing to your terms of service, being consistent with the communication, and so far, they’ve only gotten the simple sketch with colors. But then you get a notification from PayPal that the client is filing a Dispute against you because you took too long. The client then decides to go with a Claim, even though you promised to be cooperative, and PayPal is then involved in the situation. Because you’ve provided enough evidence that the client has agreed to all of your terms and shown them visual progress, PayPal will then possibly revoke the Claim and you get your money back.
Another scenario is finishing the commission but the client says that they didn’t get it. If PayPal sees that the client has consented to getting the commission through email, and it shows that they did receive it (a screenshot of the client saying that they got the email and saw the commission and had no issues afterwards), then again, PayPal will side with you.
Always keep the conversations of the commission, how it’s going to be sent to the client since it’s a digital good, updates, due dates, timeframe, the Invoice, consent of anything during the commission, your Terms of Service of your Commissions Info, screenshots of them getting the updates or finished product of the commission, etc. Save them in a separate file and do not get rid of them until the 180-day period or Dispute/Claim period is done. Always be prepared for the worst. BE VERY SPECIFIC WITH YOUR PROPER DISCLOSURES, PROVIDE EVERYTHING!
NEVER GO EMPTY-HANDED DURING A DISPUTE/CLAIM!
For NSFW art commissions, it’s a bit tricky to deal with according to a PayPal rep because of possible content being flagged, but as long as you have a screenshot of the attachment file of the commission in an email and it gets sent to the client with their acknowledgement and agreement that they liked the final product with no other issues, then you should be fine. Again, tread carefully, though.
Please be very specific in the description of what the client is getting when you send them the Invoice. “Full-body, detailed colors *insert character* x *insert character* Commission” is a better description than “*insert character* x *insert character* Commission” because an improper description is enough for PayPal to side with the client. Also, because it’s a digital good, OMIT THE SHIPPING ADDRESS OPTION! Again, proper disclosure is a key factor.
Even if you have good intentions and are being true to your word, please be cautious in engaging in things that may cause the client to have enough reason to file a Dispute/Claim against you. Always update them on the status of the commission as consistently as you can, let them know of delays ahead of time and get their acknowledgement for anything, and try not to do your own art or accept new commissions unless you’ve told the client about it in advance or before the commission had started. That’s why communication is key, and honestly, not a lot of people are aware of that. Again, misunderstandings can occur.
Make sure that your Terms of Service in your Commissions Info entails on what’s to be expected during the commission. Again, be very specific. That way, your client knows on what they had agreed upon and got themselves into in the beginning, especially on how complex the art commission will take to do.
When a Dispute is filed against you, they take the funds off of your PayPal account until it’s resolved, so ensure that you don’t have low funds to the point of having a negative balance, if possible.
Don’t cut off all forms of communication or delay too long in responding to your client because it’s enough for PayPal to, again, side with the client. BLOCKING THE CLIENT FROM ALL PLATFORMS OF COMMUNICATION WILL SEAL THE DEAL AGAINST YOU!!!!!
Even PayPal has it where it says that a Good Communication from both parties is imperative in preventing Disputes/Claims from occurring. Artists and Clients can be culpable depending on how they handle the situation. The Disputes and Claims rep has told me that, again, Proper Communication from both parties is CRUCIAL NO MATTER WHAT!
I’m not trying to scaremonger to the point of dissuading potential clients from wanting to commission artists, or artists who want to do commissions but are wary of the Invoice method. I just want those to be careful, is all. Remember, always be prepared because these types of situations do occur. It sucks to deal with, I know, but it does happen. As long as you are prepared should it ever occur to you, you know on how to handle it as calm and collected as possible.
I understand that art takes time and dedication to do, believe me. I’ve commissioned various artists, and so far, aside from 3 artists, nearly all of them have been successful with no issues whatsoever. Whether it was a few days, a few weeks, or even a few months to update and complete, I was highly okay with it because THERE WAS PROPER COMMUNICATION BETWEEN ME AND THE ARTIST! But please consider that artists are not inculpable of their questionable actions. Again, SIMPLE COMMUNICATION IS KEY!
Clients, again, please only file a Dispute/Claim when you’ve tried to contact the artist but have met with no success, especially after waiting a month or more for a proper response. DO SO AS A VERY LAST RESORT! Again, TRY TO WORK THINGS OUT WITH THE ARTIST AS BEST AS YOU CAN BEFORE CONSIDERING THAT LAST RESORT!
Remember, whether you’re the Artist or the Client, YOU HAVE CONTINGENCIES!
For those doubtful on this post, you can always contact PayPal through their website or by their Customer Service Phone Line for more info. Just expect a long waiting period, is all. Also, you’ll need to set up an account before calling because they also want you to input a password that’s needed to call them; it’s provided on their website. Honestly, you’ll get more info from their representatives than through their website. I didn’t spend an hour being on hold for nothing.
Thank you for reading and stay safe out there!
Paypal Customer Service Line:
1-888-221-1161 (U.S. Only) Hours are 5am to 10pm PT
1-402-935-2050 (if calling from outside the U.S.)
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