PAYPAL SIGNAL BOOST FOR COMMISSIONERS *updates*

2 min read

Deviation Actions

The-PuddingKing's avatar
Published:
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So, I saw this Paypal violation thing on Tumblr:

EVERYONE needs to start using Invoices. This is very important.
Paypal has recently updated their TOS and it’s something that everyone should pay attention to. 
“10.3h If you violate the PayPal Acceptable Use Policy, … you will be liable to PayPal for the amount of PayPal’s damages caused by your violation … You acknowledge and agree that $2,500.00 USD per violation … is presently a reasonable minimum estimate of PayPal’s actual damages … PayPal may deduct such damages directly from any existing Balance in the offending Account or any other Account you control.”
DO NOT SEND PAYMENTS AS “GIFTS” You will be risking your commissioners account and that is really really bad.
Artists, REQUEST PAYMENT THROUGH INVOICES. It lets YOU control how money is sent.
Commissioners, DO NOT SEND PAYMENT unless you send it through “for goods and services.” If your artist requests ‘send as gifts’ BEFORE you send payment, tell them about the $2,500 fine per violation, as they probably do not know about it.
Yes, paypal fees suck, but it’s better to have a few dollars missing than to get fined $2,500 for a $20 purchase. 


I am not sure if this is true or not but just to be sure that please send payment using through "for goods and services" or maybe I should just use invoices.

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Updated by a tumblr user:

I literally just called Paypal.
The $2,500 fine is real. It has always been against their Acceptable Use Policy to get around the fees, but now they are adding the fine to make people take it seriously.
Sending payment for a service/purchase as a ‘gift’ is fraud. Which is illegal. Which is against their AUP. Sure it might not a big enough fraud for them to report, but if they catch you, they can: Suspend your account, keep you from using paypal in the future, can take legal action against you, and fine you the $2,500.00 USD, among other things.
If you want to verify this for yourself, call their customer service number and ask to speak to an agent. They will confirm it. It literally only took me less than ten minutes to check this.

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Arusuko's avatar
I can't find this line in the policy