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In today’s digital age, art transactions are typically processed through electronic payment methods like Square or PayPal, with records stored online. However, for artists selling directly to customers at fairs or shows, an “old-school” approach to documentation can offer an extra layer of security and help prevent chargebacks and misunderstandings. Simple practices such as taking a photo of the customer with the purchased art piece, collecting customer contact information, and providing handwritten or printed receipts can make all the difference.
Changes in chargeback policies by Square and other payment processors have shifted dispute resolution processes to favor buyers, creating new challenges for artists. Previously, sellers could present evidence to counteract chargeback claims with a reasonable expectation of protection if they followed best practices. Now, however, updated policies and systems prioritize customer satisfaction, making it easier for buyers to dispute and reverse charges—often leaving artists at a disadvantage. By understanding the details of these new policies, we can better prepare to navigate and address the risks involved.
Set Clear Terms and Conditions: Before the show, establish a clear return and refund policy and communicate it to your customers. Whether you post it at your booth or include it on receipts, make sure customers understand your terms. This clarity can prevent misunderstandings about returns or exchanges after the sale.
Offer Personalized Customer Service: Chargebacks can sometimes result from dissatisfaction. By offering a warm, engaging, and helpful customer experience, you can address any concerns before they escalate. Many issues can be resolved with a simple conversation, reducing the likelihood of disputes later.
Use Accurate Descriptions and Transparent Pricing: If you sell pieces that may appear different under various lighting (e.g., jewelry or glasswork), provide customers with detailed descriptions and, if possible, offer natural light viewing. Transparency in materials, dimensions, and pricing avoids surprises and dissatisfaction that could lead to chargebacks. This needs to be documented in a sales receipt.
Document Each Sale; Writing out a receipt might feel old-fashioned, but it provides a clear, physical record of the transaction, including details like the date, artwork title, price, and terms (such as "no returns" or "final sale"). This receipt can be photographed or copied for your records and shared with the customer. In the event of a chargeback, the processor can see a detailed transaction history. A written receipt creates transparency, reduces the risk of misunderstandings, and gives both parties a point of reference.
Clear documentation, including photos of each sold piece, can support your case in a dispute. Photo documentation can show the condition and presentation of the work at the time of the sale, which is valuable if there’s a return or dispute later on.
Collecting Customer Contact Information: Gathering basic contact information (like a phone number or email) from each customer has dual benefits. First, it provides a way to follow up with customers for marketing purposes, such as informing them of future shows or new work. More importantly, it gives you a direct way to reach out in case of a payment dispute or misunderstanding. Having contact details also encourages customers to approach you directly if they have an issue with the piece, rather than filing a chargeback through their bank.
Use Recognizable Payment Descriptions: Make sure the business name that appears on customers’ billing statements matches the name they associate with your work. Using your full name or art business name (rather than a generic descriptor) helps avoid confusion if customers review their statements later.
Provide a Delivery or Pickup Confirmation: For larger pieces that need to be delivered or shipped, use a service with delivery tracking. For items picked up at the show, a written acknowledgment or customer signature can confirm that the buyer received the piece. This evidence can be crucial if a chargeback arises.
Encourage Direct Resolution: If a customer does have a concern, make it clear they can contact you directly for resolution. Adding a “Contact for Questions” note on receipts or business cards encourages customers to reach out, allowing you to address any issues directly rather than through their credit card issuer.
Respond to Disputes with Documentation: In the event of a chargeback, provide the card processor with any supporting documentation, such as proof of the sale, photos of the piece, and records of the transaction. Strong evidence helps establish the legitimacy of the sale and may result in the chargeback being reversed in your favor.
These simple, "old-school" tactics act as safeguards for both artists and customers by building trust, creating a reliable record, and offering clear documentation. Artists must take proactive steps to protect their sales. These small actions can make a significant difference in resolving disputes and preserving the value of your work.
By combining digital tools with traditional record-keeping, you create a balanced approach ensuring every sale is more secure.
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