The client asks to refund the money for digital services.

[smogl7]

Hi, recently I did digital artwork for one client online.

The work was approved, completed and paid according with company policy.

And suddenly, weeks later, I've received an e-mail where the client asks to refund the money.

It never happened before. How can I handle this situation and protect my interests?

The concern is that PayPal don't have any consideration for sellers of “Intangible purchases like services, digital goods, etc.”.

Thanks in advance.

[smogl7]

Yes, your assumptions are correct. A few days ago I asked him

to send me the detailed descriptions on all flaws he’s found to fix 

and also suggest to print the files in our lab, he doesn’t respond to me yet.

If it was an initial intention for having the work done for free, I actually can

do nothing, except to send the money back. It’s his right to file a dispute…
and $20 chargeback fee is a change compare to the sum... 

[DPCreations]

I only deal with tangible goods and quickly come up with a deal when the buyer is not quite satisfied.  I'll loose some, but the buyer is happy and I now it's part of business to build a cushion for that.

I did find that a phone call and person-to-person discussion can be quite helpful in an effort to listen to the real problem and then work on an offer.  If I have an offer I'll then make sure it is all documented by from the buyer.  I attempt to interpret what the buyer really wants or doesn't like; it's not possible to do that by email.  I do my best to salvage something out of the deal.

My responses my help you forumulate a logical procedure that works with your business.

[smogl7]

Thank you for your help, but yes, it's different compare to the “tangibles”.

[MJMayo · Accepted solution]

In the future, always prepare an estimate for your client to sign that outlines the scope of work, desciption of services and estimated cost, payment schedule, kill fee and an errors and ommissions clause that states

It is the CLIENT’s responsibility to check initial and printer proofs for content accuracy before releasing final product to press. YOUR NAME is not liable for errors or omissions on the part of the CLIENT. YOUR NAME cannot be held responsible for errors under either or both of the following conditions: if the CLIENT has failed to indicate changes at the proof stage or if the CLIENT has instructed YOUR NAME to proceed to press without approval of proofs. For printed pieces, a reasonable variation of color between proofs and the completed job shall constitute acceptable delivery.

If however, the issue is you did not properly format the item for press, which rendered the item undeliverable (in other words, you created something at low resolution, without bleeds, wrong color space, etc.) and the client could not use it for the purpose that they hired you, you should refund their money. Especially if it was designed for use at a specific time and that time has passed. 

[smogl7]

  Thank you for the advice. It’s really helpful and I'll try this out for sure.  

[Whac-A-Mole]

I will offer you a piece of advice you should not forget.

If you dont want to work for free,find another payment method-

cash,check,money order,wiretranfer,western union, moneygram.

all those terms and agreement between you and the other party means zilch if you dont have the legal resources to pursue.

it means totally crap ifyou cant enforce it.

[smogl7]

Thank you, and I agree with you. When it’s possible I use other payment methods,

but, unfortunately, sometimes it just doesn’t work out.

[Whac-A-Mole]

On Ebay motors,there is no seller protection but they do not have to accept paypal,but what sellers usually do is accept a non refundable Paypal deposit and the rest is cash or cashier check.

You can do the same,but I sense these days those who provide services and goods online do not have much bargaining power,so what you can do to protect yourself is to mail him a hard copy of your work with tracking,cost is $2.61 for 2 ounces,USPS FIRST CLASS.

It may not work,but you never know,the worst is that he has to spend 2.61 to return something,