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Invoice Guide for PayPal
By onisuu   |   Watch
1K 314 47K (23 Today)
Published: January 13, 2017
© 2017 - 2019 onisuu
reblog on tumblr

screenshots from www.paypal.com

Hello! Since I have received some questions about how to go about using invoices on paypal, I labelled some things from a screen cap of the pages to hopefully guide artists on how to create and send an invoice to their customers/commissioners.

I have a business account on paypal, so I apologize if some of the screenshots look different from what it looks like for a personal account. ^-^

You can hide your address under "My business information": click edit, and under Address, select "Don't show on invoice".

*note* the paypal fee is actually about 4% but I rounded it up to 5% in this guide, because sometimes the fee is a little higher if the customer is outside of your own country so rounding up helps account for those situations. Basically, the take home message is -- increase your advertised prices instead of asking your customer to pay EXTRA on top of what was advertised. It's against the PayPal TOS to make buyers top up and pay the fees as a surcharge on top of a product's price.

reference>> From Section 8 of PayPal User Agreement
"For Purchase Payments, the recipient of the payment will always pay the Fee."

- The artist is the recipient of money from the customer, who is paying for the artist's services.


Also, you can choose to increase your commission prices to even numbers so they look neater and less random. (like $20 instead of $19.73)


Here's a guide to Buying Art with PayPal (paying for a service)
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Comments (289)
Kucimi's avatar
Kucimi|Hobbyist General Artist

hi there! i have a question, what if the people uses kofi and kofi go thru paypal? i have a friend who support me using Kofi . then he used paypal to pay. do i still nid to do the invoice thing? even tho he uses kofi?

Reply  ·  
onisuu's avatar
onisuu|Hobbyist Digital Artist
Just use kofi ^_^ you only do the invoice if they are directly using PayPal with you :3
Reply  ·  
Kucimi's avatar
Kucimi|Hobbyist General Artist

thank you so much :)

Reply  ·  
Nagiyesu's avatar
Nagiyesu|Hobbyist Digital Artist
hii ;u; your tuto help me a lot! but l have a question
now the paypal dont have the option add tracking info or it´s me <¨3 because l dont have that 
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RENNR's avatar
RENNR|Hobbyist Digital Artist
Hello, first of all thank you for the great explanation, i just got my paypal fully verified and this is the first time im using invoice x)

i have 1 question if you dont mind x(,
i've heard story about artist getting a 'penalty' or 'fine' something like that because the costumer filing a report that their good isnt arriving even when the artist already send their commission. I've heard this has something to do with the physical address of the costumer. Since we are selling digital product, is there anyway to prevent these in the first place? and what can we do if this stuff happens?

Thank you once again!
Reply  ·  
onisuu's avatar
onisuu|Hobbyist Digital Artist
I'm happy it's helpful! ^^

I have also heard about it but I never experienced it first hand or talked with someone who had it happen to them. 
The safest approach is to send invoices to your customers. After you complete the commission, I would mark it as "order processed" as outlined in the lower portion of this guide.
Make sure you write in your terms of service that:
1. the customer is paying for "digital art"
2. the customer will not receive any physical item in the mail from this purchase
3. the customer will only receive a digital copy of the artwork that is custom-made to their order
4. When the customer pays this invoice, they acknowledge that they understand and agree to your terms of service

So, if the customer makes a false report against you later on saying they didn't receive the art, you can protect your case by showing proof of the artwork, when it was delivered to the customer, screen shots of the order that they made to you, and screenshots of your invoice and terms of service

These evidences can support your side of the story when you have fulfilled the customer's order and they try to claim money back from you wrongfully after receiving what they ordered.
Reply  ·  
HolliBerry's avatar
I've only started accepting commissions recently and this guide of yours is really helpful!

Thank you for this!
Reply  ·  
onisuu's avatar
onisuu|Hobbyist Digital Artist
I'm glad it helps! ^_^
Reply  ·  
mariam246810's avatar
mariam246810|Hobbyist Digital Artist
thank you ,the tutorial helped me a lot , i did everything you said in the last step ,i choosed order processed but when i entered submit it shows me this message 
We're experiencing technical difficulties

We're sorry for the inconvenience.
do you have a solution for this 
Thank you in advance

Reply  ·  
onisuu's avatar
onisuu|Hobbyist Digital Artist
I'm glad it helped! You'll have to try again later, it could be that Paypal is updating or there is something with the site connection at the moment.
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mariam246810's avatar
mariam246810|Hobbyist Digital Artist
oh ,thank you so much 
Reply  ·  
classycakepops's avatar
I currently have the same the same problem! Someone commissioned me a year ago and I totally forgot to update the order as processed! I tried updating today, but I get the same technical difficulties notice. Were you able to resolve yours, mariam246810
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Pink-dooples's avatar
Pink-dooples|Hobbyist Digital Artist
Is it a requirement to create invoices for digital services? My account has been locked for 21 days just because I received a payment with the recipients address, will I be able to avoid that if I ask others to avoid including it?
Reply  ·  
onisuu's avatar
onisuu|Hobbyist Digital Artist
PayPal informed you that was the reason for locking the account? It seems odd that just having the address included resulted in a lock -- the client didn't file some kind of dispute or anything? If you were previously asking clients to send you the payment, they might have chosen "send money as gift" which could result in a lock if PayPal finds the amount given was actually in exchange for a service (maybe there was a memo included with the money that mentioned the art order)

In any case, it doesn't hurt to send invoices for digital art, and you can also select 'don't show shipping address' after you put in the client email and click the "ship to" button

With invoices, you'll control how the money is requested (and invoices inherently mean the money is for a service or product, and the memo is written by you if you decide to included one)
Reply  ·  
SuperDorkyChick's avatar
SuperDorkyChick|Student Filmographer
I've never asked for clients' address since it's only a digital good/service, but when they pay, but it'll show their address and PayPal gives me the shipping option buttons. I don't select anything but will they fine me for a "non-existent" physical item?
Reply  ·  
onisuu's avatar
onisuu|Hobbyist Digital Artist
They won't fine you unless the client files a report that they didn't receive their purchased item, so pretty much you are not in any risk.

What you can do to further protect yourself (in case such a report actually happens) is to clearly state in your terms of service (which can be added to the invoice in it's own section) that the client is purchasing a custom digital artwork, wherein no physical item will be shipped to the client after completion. The client will only receive a digital file of the art.
Reply  ·  
SuperDorkyChick's avatar
SuperDorkyChick|Student Filmographer
Thank you so much! I just added that part to my invoice but it makes me relieve to know that. 😊
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nanathebananadraws's avatar
nanathebananadraws|Hobbyist Digital Artist
Thank you SO MUCH!! This is such an in depth guide!!
Reply  ·  
Niqua10023's avatar
Niqua10023|Professional Digital Artist
I have a personal one. Can I still sell my work? 
Reply  ·  
onisuu's avatar
onisuu|Hobbyist Digital Artist
Yes, it's fine!
Reply  ·  
Niqua10023's avatar
Niqua10023|Professional Digital Artist
Oh alright. Thank you!
Reply  ·  
dianneconsignado's avatar
Hi! Is it allowed to change the tracking info to "order processed" even though there was no shipment that happened? Is it legal to do that? :)&nbsp;
Reply  ·  
onisuu's avatar
onisuu|Hobbyist Digital Artist
Yes, because once you've finished the art and give it to your client, you have processed the order.
Reply  ·  
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