PayPal goods vs services

thedon23

thedon23

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Hey guys,

Recently I've been receiving some payments through PayPal for some SEO work I'm doing for clients. Now, question is..a few payments I've received, PayPal says the money will not be available for 21 days, or possibly earlier if I ship sooner. My question is, does this mean that my client sent the payment as a "good", not a "service"?

Would this make it easier for him to file a dispute?

Also, is it true that disputes cannot be file on gift payments? If so, seems like it might be a good idea for them to send the payment that way.
 
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Big PayPal user here. I am pretty sure that GIFTS can't be disputed, unless you claim that your whole account was taken over which I'm sure they'd be able to tell.

Sometimes I get a hold on funds if they pay by check, etc. It does seem shady and I'm always curious when it doesn't always go as planned. Cover your butt.
 
What is the difference for PayPal "gifts"? Is it free for the receiver? Charge goes to the sender?

For a while I was under the impression that it was a free way to transfer money (granted you trust the other person)
 
brainstorm1 said:
What is the difference for PayPal "gifts"? Is it free for the receiver? Charge goes to the sender?

For a while I was under the impression that it was a free way to transfer money (granted you trust the other person)
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yup there is no fee at all for payments sent as gift.
 
Thanks guys. So do you think it would be..a bit business practice to ask a client (who has already paid) to resend the payment as a gift, and explain why? I already offer a money back guarantee, and I'm just trying to cover my own ass. They are paying me roughly $300, so if they did a charge back, I'd be out $300..
 
Also, when I receive a payment, is there a way to tell if it was sent as a gift, good, service, etc..?
 
Services sometimes get held for 21 days as well, along with gifts - PayPal seems to flag accounts randomly for the 21 day hold. However, after a couple reputable transactions, the flag usually goes away. To see whether or not whether the client sent you money as a good or service, look at the details of the transaction - if it says "print shipping label", then they've sent you the money as a good, which isn't good if you're billing for SEO services. You need them to send you the money as a service because you're not shipping physical deliverables, and consequently have no tracking to back up the purchase if they decide to dispute.
 
InfinityAI said:
Services sometimes get held for 21 days as well, along with gifts - PayPal seems to flag accounts randomly for the 21 day hold. However, after a couple reputable transactions, the flag usually goes away. To see whether or not whether the client sent you money as a good or service, look at the details of the transaction - if it says "print shipping label", then they've sent you the money as a good, which isn't good if you're billing for SEO services. You need them to send you the money as a service because you're not shipping physical deliverables, and consequently have no tracking to back up the purchase if they decide to dispute.
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Thanks buddy. If he sent it as a gift, it would show the fee as "$0.00" correct? I had him sent it as that, cause I think even if he sent it as a "Service", it'd be to do easy for him to file a dispute and win.
 
It is not your account that triggers this, it is the account the money is sent from. Never do gifts if you are paying as you will not have any recourse. If you are a seller, never refund a different payment process. So do not send the money back via WU if they paid via paypal or send to another paypal account as a claim can still be filed on the original payment. Protect your ass on this. You just have to have enough budgeted to balance this out and be prepared for PayPal to just reverse the money. Another way is that you can send them a PayPal invoice and have them pay that.
 
TNphoneman said:
It is not your account that triggers this, it is the account the money is sent from. Never do gifts if you are paying as you will not have any recourse. If you are a seller, never refund a different payment process. So do not send the money back via WU if they paid via paypal or send to another paypal account as a claim can still be filed on the original payment. Protect your ass on this. You just have to have enough budgeted to balance this out and be prepared for PayPal to just reverse the money. Another way is that you can send them a PayPal invoice and have them pay that.
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Thanks bro. Ya no worries, I would never send money as a gift, as there is no way to recover that money. But with a few new clients, I've had them send the money as a gift so that they cannot file a dispute one month in and say that I never delivered the services I promised.
 
thedon23 said:
Thanks guys. So do you think it would be..a bit business practice to ask a client (who has already paid) to resend the payment as a gift, and explain why? I already offer a money back guarantee, and I'm just trying to cover my own ass. They are paying me roughly $300, so if they did a charge back, I'd be out $300..
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They can't file a dispute if they send payment as a "gift".
 
My question is a little bit off topic, but can i get my accaunt blocked or limited if i have disputs in future? Or how many disputs can make me troubles? I cant take the decision which way is better for receiving money from seo services - direct PayPal or 2co. What is the direct PayPal negative side?
 
GunzZ said:
My question is a little bit off topic, but can i get my accaunt blocked or limited if i have disputs in future? Or how many disputs can make me troubles? I cant take the decision which way is better for receiving money from seo services - direct PayPal or 2co. What is the direct PayPal negative side?
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You will lose any and all disputes, for any reason.
 
brysi said:
yup there is no fee at all for payments sent as gift.
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Paypal's fee is applied to to gifts as well. With gift payments, either the seller or the buyer pays the fee.
 
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