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By now you've probably heard of the Paypal Chargeback Scams (and if not, you should really read about them, in especial if you are thinking of using online banks like paypal to receive payment for your art)

The reason why this scam is working so well -unfortunately- is basically this: "Digital Goods" (like digital illustrations, webs, etc.) aren't considered a THING by Paypal -and other online banks-, so they won't listen to you if you get scammed and, believe me, the paypal chargeback scam works 99% of the time according to experts. Anything that isn't physical and that can't be shipped to a physical address isn't considered proof by Paypal unless you have serious documentation that proves otherwise -external to Paypal, mostly, like electronic contracts and stuff-. 

Read more about that first paragraph here: www.e-crimeexpert.com/scams/ar…

Now, that link helps you understand why this is happening doesn't cover very well what to do if you have already been scammed (for digital art or such services). So you should really read this other journal for very useful info to help you fight (and next time, prevent) this issue mdizzle-designs.deviantart.com…
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:iconajshim:
ajshim Featured By Owner Aug 13, 2014  Hobbyist Digital Artist
I am glad that I haven't used PayPal for any of my work. Thanks for the heads up.
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:iconcarmenmcs:
CarmenMCS Featured By Owner Aug 14, 2014  Hobbyist General Artist
Using paypal is ok and better than most other online banks really. This kindo f scam happens because some clients are heartless but also more clever and informed than the sellers and know the system doesn't currently cover digital goods especially if the seller is an idiot and doesn't care to get enough info and legal proof of their transactions. It is also partly paypal's fault for making it so easy for the client to get their chargebacks and not considering digital goods as proof, but it is ALSO the sellers/artists fault for not going about their business properly.

Specially until Paypal and other online banks make it easier for the seller to protect their digital goods sells by default, the sellers need to realize that if you are not being professional, you are going to lose ALL the chargebacks case (not only that, you can't even fight the case). Send invoices with terms and conditions the client is going to accept and that works are proof of your, request a few common personal info (when you send packages, you request it, so why would it be different with other kind of business!). Most DA artist simply talk a few times on mail, ask for money, get it, and that's it that's all the proof you have and it's not even fucking legal mind you, so the seller is being a mini criminal... and I am pretty sure most of the DA artists don't pay any taxes based on the money they make online, so it's even more considered black money.

So please don't get this wrong... this one scam is happening because EVERYONE is being irresponsible as fuck, plain as that. Paypal is so convenient and many ask the money from their clients as if they were asking for money from their parents, and that's the problem. Paypal actually allows you to choose to send invoices, they have templates and all, so it's the artists' problem and choice not to send them to their client and instead just send a mail saying "please send this money here" without legal proof of anything related to the business.

You can't ask Pyapal to do all the work either, in all "normal" banks and in all other business there are problems and special cases and all because not absolutely everything can be regulated, and it's not going to please everyone either.
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:iconmarikokitty:
Marikokitty Featured By Owner Aug 13, 2014  Student Traditional Artist
I just heard about this today >.>; this is terrible, hearing that this has happened to so many artists
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:iconcarmenmcs:
CarmenMCS Featured By Owner Aug 14, 2014  Hobbyist General Artist
Well, it's partly their fault for not being more serious about their online business (I mean, it shouldn't happen if some clients weren't heartless and took advantage of the system, but this is why we have laws and why you must run your business properly, to avoid these situations as much as possible)

In any case, Paypal doesn't help either. Even in the case of fighting chargebacks for PHYSICAL items, they'll still freeze the sellers account for like half a year, even if you win. This is ridiculous and abusive. Also, apparently filling a chargeback can be from very easy to very difficult, depending on your bank's credit card (which has nothing to do with paypal, your bank is the one allowing the chargeback). I understand that it depends little on Paypal, but if they are mediating, how do they allow to just take money from the sellers account BEFORE THE CHARGEBACK IS EVEN WON ON THE OTHER PART and also freeze the sellers account until the case is solved in someone's favor? This needs to change, because imagine if this supposed little 15 years old girl who has been scamming those DA artists is the daughter of someone at a bank who makes it possible to always fill the chargebacks too easily and cause problems for sellers/artists even if they don't win at the end, they still get their accounts frozen for quite a long time.

So yeah, people need to realize that making business needs proper contracts, proper proof that the client accepts your terms and condiitons, etc.
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:iconmarikokitty:
Marikokitty Featured By Owner Aug 14, 2014  Student Traditional Artist
Mmm very true >.>;
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:icondivides:
Divides Featured By Owner Aug 13, 2014  Hobbyist General Artist
Thank you for drawing all this to my attention ^_^. 
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