Payment - FAQ
At BuyGoods, we understand that having payment clarity in important. Please use this article to address any questions you may have regarding thresholds, fees, and reporting. If you have any further questions, please reach out to your Account Manager or [email protected].
Setting Up Payment Options
From the home dashboard, click on your name/account name and select Payment details
Fill out the following details accordingly. Supported payment methods and associated fees:
- 1. Check (US only, FREE)
- 2. ACH (US only, FREE)
- 3. Wire transfer ($40 fee)
Please note that ACH and Wire payments are processed once the Commission(s) earned hits $100 or more (for Affiliates 1st time payment generated only after sales to 5 different customers)
Whenever a payment is processed, you will receive an email, letting you know that payment is on the way.
IMPORTANT: Be very careful when entering bank information. Make sure that the Account Number is accurate. Do not enter spaces between number (or letters for some international banks). For US banks the bank routing number must be 9 digits – INCLUDING leading zeros. Double check the swift code for international wires. ALWAYS DOUBLE CHECK YOUR ENTRIES to avoid returned payments.
Make sure that your bank account is setup to accept ACH or Wires.
Hit save before exiting the screen.
Frequency
Payments are processed once a week by default. More frequent payouts are available based on volume, detailed below:
FOR AFFILIATES
- 1x per week (Wednesday): default, if revenue falls below $15,000 a month
- 2x per week (Monday/Wednesday): if revenue is between $15,000 and $29,999 a month
- 3x per week (Monday/Wednesday/Friday): if revenue is $30,000+ a month
FOR VENDORS
- 1x per week (Wednesday) if prior week sales are < $400,000
- 2x per week (Monday/Wednesday) if prior week sales are < $600,000
- 3x per week (Monday/Wednesday/Friday) if prior week sales are > $600,000
If you want to be paid once every other week, or once a month, you can manage that under the "Payment Delay" section.
Pay Period End Time
Weekly (Wednesday) Payments: The pay period ends at 12:00 am EST the previous Wednesday.
Twice a week (Monday and Wednesday): The pay period for Monday's payment ends at 12:00 am EST on Wednesday the previous week. The pay period for Wednesday's payment ends at 12:00 am EST on Friday the previous week.
Three times a week (Monday, Wednesday, Friday): The pay period for Monday's payment ends at 12:00 am EST on Wednesday the previous week. The pay period for Wednesday's payment ends at 12:00 am EST on Friday the previous week. The pay period for Friday’s payment ends at 12:00 am EST Sunday the previous week.
Processing Time
Check payments take 5-10 business days to arrive at your mailbox after they are processed (see schedule above). Check payments are only supported in the United States.
Wire transfers take 1 business day to clear in the United States and 2-5 business days to clear for international wires.
ACH transfers take 1-2 business days to clear in the United States.
Payoneer payments (for qualified affiliates only) take 3 business days to show up in your Payoneer account. If you have questions about being paid via Payoneer, please speak with your affiliate manager.
Payment Threshold
You can set a minimum payment threshold amount within your account to avoid paying processing fees, unless your payment is above a configured number.
Payment Threshold is initially limited to 30 days delay from first commission earned. Within 30 days from earning the first commission, you will have the option of adjusting the payment threshold to your preference.
Initial Payment
BuyGoods will withhold payment of any balance (regardless of the indicated threshold) until the first offer for an affiliate is more than 30 days old.
In addition, you must have five (5) unique purchases under one offer as part of our Initial Payment requirement.
Allowance Reserve (Does not apply to CPA affiliates)
What is an allowance reserve? An allowance reserve is an amount we temporarily hold from your current payment amount, in order to reserve for future refunds and chargebacks.
Customers have at least a 60 days under the BuyGoods standard refund policy (vendors may extend that depending on their own policy). Customer can have up to 180 days to initiate a chargeback with their bank. As the retailer, we are fully liable when that happens and need to finance all of these refunds and chargebacks.
Your allowance reserve balance can change on a daily basis depending on your activity (actual sales, refunds, and chargebacks). BuyGoods continually reconciles your account for new sales, refunds, and chargebacks to ensure that your payments and allowance balances are accurate at every point in time. For every sale, you will receive the correct amount with the understanding that refunds/chargeback allowance reserve is a timing and reconciliation issue.
You can check your allowance for the past 90 days on the Payments tab.
Calculating size of the allowance reserve
The allowance reserve is designed to support refunds and chargebacks that will come in during 6 months (180 days) from an order date.
The allowance rate will be set to 10%, regardless of your refund and chargeback rates. Every time we pay you, 10% of your gross sales will be added towards the security deposit. As soon as the security deposit represents 10% of your gross sales over a 6 month (180 day) window, as long as your volume doesn't increase significantly, no further allowance will be held. The goal is to keep a fixed 10% of our risk exposure over the last 6 months (180 days), which is the duration customers can initiate chargebacks with their bank.
Benefits:
- No more than 10% held every month
- Predictable cash flow
- Easy to reconcile
- After 6 months, or as soon as the security deposit is funded, no allowance is ever subtracted from your monthly sales volume (unless your sales increase significantly, at which point our risk exposure increases as well)
- Total allowance held (the "security deposit") will never exceed 10% of the last 6 months, representing our risk exposure.
How are commissions and fees removed from sales?
From each sale, the BuyGoods fee is taken out and any affiliate commissions, the remainder is the vendor net. From the vendor net amount, any other allowances (ex: RevShare commission) and fees are taken out if applicable before being paid to the vendor.
Example:
$100 sale
- $10 BuyGoods fee
- $60 Affiliate commission
- If it’s a RevShare commission, $6 of an allowance is taken from the affiliate’s $60 to hold
= $30 vendor net
- From these $30 vendor pays any allowance if commission was RevShare, chargeback fees, taxes are also debited from the vendor's cut.
- For RevShare in this case the allowance would be $4 since the initial affiliate/vendor breakdown of the original sale is $60/$40.
Payments Tab
More information on the Payments Tab can be found here.