[identity profile] ritz-bitz25.livejournal.com posting in [community profile] artists_beware
WHO: I am an artist that goes by Ritz_Bitz on FA. I was commissioned by Touya_Vulpes on FA.

WHERE: During my livestream art session.

WHAT: I was livestreaming $10 shaded headshots done traditionally. People could have them laminated and mailed for $1 more. He was the first to order and got his art that night. 2 days later, on December 5th, I recieved an email that the funds were on hold and I needed to take action in the resolution center. I responded saying "He got his art that night, its intangible goods but he has the file already so I cannot offer a refund". Today, the 19th, I got an email saying the payment was reversed and given back to him. Turns out I'm not covered as a seller of goods unless the item is shipped, so he was able to make a claim he never recieved it and I lost my case because I couldn't ship this intangible good.

WHEN: Livestream took place on December 3rd and he recieved his art the same night.

PROOF:
Photobucket
Photobucket
Photobucket


EXPLAIN: When the hold was placed, I was confused but figured something wasnt verified with his account or such. I didn't contact him at this point, I answered the case in the resolution center and waited. Today I got an email that the payment was reversed, and I saw that the $10 had been sent back to him from my account. Upset and irritated, I noted him about it and he said "Oh I've been having issues with paypal for the past couple weeks. I don't know what it is." I told him he needed to resend the money or I was gonna delete the art and go through paypal for a resolution. He acted slightly irritated, saying "*sigh* fine just delete the art". I already completed the work, so obviously I wanted to be paid for it. I called paypal and spoke with their customer service.
It turns out he filed the claim that he never got what he paid for, and I had no defense with it being 'intangible goods' that I did not ship. This is why I lost the case.


I DID get my money back, however I am extremely displeased with the way the commissioner acted, trying to get his money AND have the art. He has been blacklisted now and I have changed my commission policy to having all the work I do shipped out so I can protect myself.

(frozen)

Date: 2012-12-20 08:22 pm (UTC)
From: [identity profile] snapcat.livejournal.com
You are correct. PayPal is a business and they collect fees on every transaction. Even the big non profits pay 2.2% opposed to the standard 2.9%.
When a donation button is placed and funds are received via others using it, PayPal's compliance department assesses each situation differently. If its an artist's tip jar, usually its left alone. If they say they are raising money for cancer research, thats when paperwork has to be requested. Plus if the paypal account owner upgrades to a business account and selects that they are a non-profit account then paperwork is asked for. I worked for PayPal for 3 years dealing with issues just like this. I also was one to freeze people's accounts and tell them their money was held for 180 days. I know what I am talking about.

(frozen)

Date: 2012-12-20 08:32 pm (UTC)
From: [identity profile] ritsukaao.livejournal.com
This is one of the few cases I've heard of this: The Alzheimer's donation drive and the toys for kids drive. I'm sure this was a case by case judgement that ended badly for the person running the drive. However, why would they close the personal account of the person? It has no bearing on the "business" account yet they closed it anyway. No snark but how can you explain that?

Do you believe that Paypal has done wrong in this case?

(frozen)

Date: 2012-12-20 08:38 pm (UTC)
From: [identity profile] snapcat.livejournal.com
When Hurricane Katrina happened in 2005, so may people set up accounts soliciting donations for those in need. A lot of the accounts were fake set up by scammers to make a lot of money quickly. They pocketed the $ and those in need never got it. This is when the government stepped in requiring all payment processors to ensure legitimacy of those soliciting donations. To make sure PayPal is following government regulations, sometimes accounts need to be put on temporary holds to complete the compliance process. Most accounts can still receive donations while the paperwork is being handled. Some, if receiving thousands in a short amount of time, need to be completely paused.
Its the same story.. due to some scammers and bad people, now those wishing to do GOOD for others are regulated.

(frozen)

Date: 2012-12-20 08:43 pm (UTC)
From: [identity profile] ritsukaao.livejournal.com
Wouldn't it make sense in both legitimate and scam accounts to freeze the account AND block any further donations? I mean, Paypal can only collect more money on a frozen account that is still receiving money while the both scammers and legit people can only watch from the sidelines.

I actually forgot about the Katrina incident, my bad.

eta: Also, they mostly freeze them in the thousands, what about scammers only in the hundreds?
Edited Date: 2012-12-20 08:46 pm (UTC)

(frozen)

Date: 2012-12-20 08:51 pm (UTC)
From: [identity profile] snapcat.livejournal.com
we can play 'what if' all day.
I think I explained it well enough :)

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