I'm setting up paypal. There was a startup fee I didn't know about -_- So I looked around more, and found that there are fees for when I sell something, 2.9%. Would that be 29 cents if I sell something for 10 dollars? Any advice? I know it's best to make invoices, I can find out how to do that. Is it worth having paypal, or are there alternatives I can consider for selling my artwork?
The 2.9% fee is basically industry standard for merchant services. Almost any payment processor that you choose will have similar fees.
What was the startup fee that you got charged? What kind of account are you setting up with them?
What was the startup fee that you got charged? What kind of account are you setting up with them?
Even if you're using paypal, it's an extremely good idea to learn how to make an invoice. They don't have to be fancy, for a long time I would just type it out in an email.
You need invoices for:
1) Taxes. An invoice can be used as proof of income, without having to track down the exact transaction in your bank records.
2) Legal protection. An invoice is not legally binding, however in combination with a signed contract it becomes part of the binding agreement. (not a lawyer, just what I know from being a contractor)
3) Professionalism. Even though it isn't legally binding on its own, there is a sense of respect and professionalism that comes with sending an invoice. It can make people more likely to honour an agreement.
As Kim said, Paypal and similar services will have fees for merchant services. The only ways to accept money (that I'm aware of) without incurring fees is through electronic direct deposit banking (some banks let you deposit into someone else's account based on an email address), or asking them to mail a cheque.
You need invoices for:
1) Taxes. An invoice can be used as proof of income, without having to track down the exact transaction in your bank records.
2) Legal protection. An invoice is not legally binding, however in combination with a signed contract it becomes part of the binding agreement. (not a lawyer, just what I know from being a contractor)
3) Professionalism. Even though it isn't legally binding on its own, there is a sense of respect and professionalism that comes with sending an invoice. It can make people more likely to honour an agreement.
As Kim said, Paypal and similar services will have fees for merchant services. The only ways to accept money (that I'm aware of) without incurring fees is through electronic direct deposit banking (some banks let you deposit into someone else's account based on an email address), or asking them to mail a cheque.
Popping in to say that PayPal -- if you're just starting out -- is probably the best thing to get familiar with. However, PayPal has a track record of not treating artists right, which is where the making invoices thing comes into play in order to keep yourself protected.
I am going to put it out there that you should REALLY tread carefully with PayPal, as they will do things for seemingly no reason when you look at it, and (most digital) artists have been some of the easiest people for PayPal to shut down or have people win disputes with because, as PayPal sees it, their work is not 'tangible' and cannot be proven if it has been sent or not.
While I know that there are some precautions to take even there, it's still a possibility that causes artists to have to walk on eggshells.
If you are going to look for alternatives, I would look into Google Wallet (if you live in the states, but that is restricted to the US at current), or look into Skrill -- which seems to be a European based company that works similar to PayPal. I have an account with Skrill, and even joining seems a lot easier to me than PayPal was.
The one reason I recommend this is because Skrill actually allows a lot of currency exchange and whatnot, exactly like PayPal. The downside to Skrill, however, is that people seem to not know as much about it as they do PayPal, so most people would need to make a Skrill account in order to pay you.
I am going to put it out there that you should REALLY tread carefully with PayPal, as they will do things for seemingly no reason when you look at it, and (most digital) artists have been some of the easiest people for PayPal to shut down or have people win disputes with because, as PayPal sees it, their work is not 'tangible' and cannot be proven if it has been sent or not.
While I know that there are some precautions to take even there, it's still a possibility that causes artists to have to walk on eggshells.
If you are going to look for alternatives, I would look into Google Wallet (if you live in the states, but that is restricted to the US at current), or look into Skrill -- which seems to be a European based company that works similar to PayPal. I have an account with Skrill, and even joining seems a lot easier to me than PayPal was.
The one reason I recommend this is because Skrill actually allows a lot of currency exchange and whatnot, exactly like PayPal. The downside to Skrill, however, is that people seem to not know as much about it as they do PayPal, so most people would need to make a Skrill account in order to pay you.
Yup, a fee like that is standard. I've been using Paypal for about a decade to let people pay for my art, both digital and leatherwork. I haven't had a dispute with them yet, but like FJF said, I've heard some bad stories. However, I believe in many of those cases, there wasn't a lot of information included in the Paypal transfer itself. Like, "Person A sent Person B $20" was the extent of it. That's where invoicing comes in. In the invoice you can include a detailed description of what your customer is receiving. I believe there's a "terms and conditions" box for it. I have invoice templates set up and all the ones I have for digital art say "You will be receiving a digital file upon completion--nothing will be mailed to you" or something along those lines. I was pleased with how easy invoicing was with Paypal!
Oh, and also, when a customer is paying an invoice or even just sending you money, they're given the option to input their mailing address, OR choose an option that says "no mailing address needed." I'd encourage your customers to pick the latter!
Oh, and also, when a customer is paying an invoice or even just sending you money, they're given the option to input their mailing address, OR choose an option that says "no mailing address needed." I'd encourage your customers to pick the latter!
Yeah, I knew an artist who had those kind of problems, but Paypal is so widely used. It's good that it doesn't happen with everybody though. Is Google Wallet easy and stuff? Do people need an account to buy from you if you use it?
Reading their FAQ, it seems all you need is their email address for google wallet. It looks like you can request money without them needing an account. One thing I would be wary of, however: google wallet doesn't appear to be designed for business transactions. It's in their terms of service with a cursory read, that "buyers" and "sellers" can use the service, but it seems to be primarily a friends and family focused app. I don't know how that would play out with a potential dispute.
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