I’m new to this forum and I just came here for asking on of my doubt which I’m facing from some days. I’m a freelancer doing work for my client for writing article. This client is paying me via paypal. How should I came to know whether he is paying me for Goods or Services? I came to know from one of the website that if there is some print slip is there, then he is paying you for Goods. I think he is paying for that only. Now the question arises for me is he is humble and he don’t have any combat with me. I came to know from that website only that it is not good for accepting payment of freelancing as “Goods”. If in future he put dispute against me that he didn’t get the Goods, whether I will lose? Is it possible that PP will take away amount directly from my account (because the whole amount of PP is in my bank account) ? What proofs I can show them for my work? However, we are just conversing via chats not E-MAILS, so I don’t think so snapshots can play a crucial role? I will surely thanks the people for their humble advices for me.
Personally, I wouldn’t accept such payments via PayPal. If you have a written agreement with the client, and send an invoice, and keep your emails, you’ll have a lot of evidence that services were provided if there happens to be a dispute.
You are correct in being cautious when accepting payments via Paypal for ‘services’ as it is more complicated to prove ‘delivery’ and officially, Paypal offer no protection in such cases. So really, you take your chances. I have read cases on these forums where developers were successful in fighting Paypal reversals for services, so make sure you retain all communications and have the client sign a final ‘approval’ form before you hand over the site (have then scan and email it to you).
Personally, I’d use bank transfer, I don’t believe it’s possible to ‘reverse’ one of those.
[FONT=verdana]In addition to the good advice given by Ralph and Shadowbox, I would avoid PayPal because it doesn’t look professional in the client’s eyes. PayPal is fine for selling one-off items on eBay, but not for proper commercial transactions.
You should invoice the client for the work you do. The invoice should clearly state what goods or services you are charging for. It should also include your bank account details, so that the client can pay directly into your account if he wishes. You should also make it clear that you will accept a cheque or money order if that’s what the client prefers,
Keep in mind too that PayPal probably works out more expensive for the client than other methods of payment, plus his accounting systems might not be geared up to using it.
An invoice is a piece of paper (or a digital equivalent) stating what goods were supplied and the price that needs to be paid. You can either give this to a customer before or after the money has been paid. If the money has already been paid, it’s good to indicate this on the invoice.
We don’t exchange e-mail
PayPal will have emailed the customer to confirm payment. That email will include your email address.
What does the below image means {find attached} ? whether he paid me for goods or services?
Yes, it is a message to you that the money has been paid and that you should send the product to the customer. PayPal doen’t know that you are not selling a physical product. It’s a kind of generic reply, I presume.
Is there actually a dispute, or is this just a theoretical question? If you send him an invoice for payment and he pays that money to PayPal, I think it is pretty obvious what that money was for if a dispute arises. (However, this is opinion only. Speak to a proper legal person if you are really worried.)
Make sure to send an official invoice with the amount to be paid and listing the services given. If he pays that amount to you (any you will have a record of that) I would think he’d be in a weak position if he complained.
If you want to be a freelancer, you’ll need to learn at least the bare basics of running a business. Your customers need to be invoiced, and you must keep a record of that invoice for accounting purposes and for when you file your tax return. The tax man may also request a copy of your invoices if he’s investigating your tax affairs. I’m not going to explain what an invoice is as TBH, a quick search on Google will provide you with plenty of excellent resources. I also suggest you do some more research about the basics of running your own business/being self employed, there will be information specific for your country, most likely on your government web sites.
As shadowbox said, you should Google it. But when you yourself pay for something, like a computer, the store will give you a piece of paper with their logo on it, a list of the item(s) you bought, and the amount you paid (or the amount you owe them). As a service provider yourself, you should do that too.
In addition to the good advice given by Ralph and Shadowbox, I would avoid PayPal because it doesn’t look professional in the client’s eyes. PayPal is fine for selling one-off items on eBay, but not for proper commercial transactions.
GoDaddy, newegg.com and many other well-known on-line businesses accept paypal payments.
Quite honestly, if someone is setting up in business, and they need to use Google to find out what an invoice is, something is wrong. They need to either (i) spend some time on learning how to run a business; or (ii) find someone trustworthy to take on all the business admin; or (iii) don’t attempt to run their own business. Sinmply looking up a word on Google is not going to cut it. Mike
I think ‘spending time learning how to run a business’ would initially fall under the ‘Google it’ advice. You should be able to learn all the ‘technical stuff’ from a few good business resource sites - certainly enough to get the ball rolling, and the rest you learn from experience.
I would avoid PayPal because it doesn’t look professional in the client’s eyes. PayPal is fine for selling one-off items on eBay, but not for proper commercial transactions.
Maybe 10 years ago, but these days Paypal is used by a large number of big ecommerce players, and is a godsend to small businesses who cannot afford the costs associated with merchant accounts and payment gateways. And thanks to ebay, most people already have a Paypal account so it’s really quite accepted.
