How do Payouts work?
What are Payouts?
Payouts are bi-monthly money transfers for transactions within a Gigs Connect project, that pays funds to your Stripe Connect account.
We send payouts on the 1st and 16th of each month, covering the previous 15 days. For instance:
Payouts on the 16th include all transaction from the 1st to the 15th of that month
Payouts on the 1st cover all transaction from the 15th to the end of the previous month
How are Payouts calculated?
Payout logic:
It's important to note that payouts are calculated based on the exact time when an event takes place. Such as the exact time when a payment succeeds, when a payment is refunded, or when a dispute is lost. These exact times are pulled from our event data, but are not currently relayed in an exportable fashion.
Because of this, it's relatively easy to miscalculate when doing a crosscheck on your end.
Payment Export:
As mentioned above, the payment export that you're able to download from the Gigs dashboard does not hold information on the when a payment succeeded. This is due to the fact that we have payment retry logic in place, and we only pay out once payment is collected. In turn, this means that once the payment is collected, the payment export will very likely differ from our events.
Payout Line-Items:
Line Item | Money Flow | Defintion | Calculation |
Total Retail Amount Sold | Credit | The total amount sold, excluding discounts. | Retail Price * Quantity Sold |
Discounts | Debit | The total amount of discounts given through vouchers. | Discounts * Quantity Sold |
Collected Payments | Credit | The total amount collected by Gigs. | Total Retail Amount Sold - Discounts |
Taxes | Debit | Funds collected from users and therefore withheld from the payout to cover federal, state, and local rules, including collecting and filing regulatory fees and taxes. | Taxes * Quantity Sold |
Recovery Fees | Debit | A charge imposed to recover costs incurred by Gigs for charges associated with administrative, legal and other costs, fees and expenditures, including charges associated with the sight and hearing impaired, local number portability and North American Numbering Plan. | Recovery Fees * Quantity Sold |
Gigs Fees | Debit | The sum of the contractually agreed upon wholesale price for plans. | Gigs Fees * Quantity Sold |
Payout before Adjustments | Credit | The payout amount before refunds, disputes and dispute fees are taken into account. | Collected Payments - Taxes - Recovery Fees - Gigs Fees |
Refund Adjustments | Debit | The excluded refund costs of subscriptions. | Retail Price (of the refunded transaction) * Quantity Refunded |
Dispute Adjustments | Debit | The excluded dispute costs of subscriptions. | Retail Price (of the disputed transaction) * Quantity Disputed |
Dispute Fees | Debit | The excluded fees incurred by Gigs for a disputed purchase. | $15 per dispute (or the currency of the transaction) * Quantity Disputed |
Net Payout | Credit | The payout amount before the operations reserve, reserve on hand, and (if any) manual adjustments are taken into account. | Payout before Adjustments - Refund Adjustments - Dispute Adjustments - Dispute Fees |
Operations Reserve | Debit | 10% of the net payout held for future refunds and disputes. This reduces Gigs risk of exposure to excessive refunds in the future period. | 10% * Net Payout |
Reserve on Hand | Credit | Returning of last periods Operations Reserve. | Last months operations reserve |
Manual Adjustment | Credit/Debit | One off additions or subtractions from the net payout amount. These adjustments could be put in place for a variety of reasons, including: discounts, goodwill, unpaid invoices for SIM orders, etc. | Calculated on an ad-hoc basis |
Final Payout Amount | Credit | The amount to be paid out to your Stripe Connect account. | Net Payout - Operations Reserve + Reserve on Hand + Manual Adjustment |
Line-by-line export request:
If you're needing a line-by-line export of charges and fee calculations, we can provide these on an adhoc basis. Please reach out to the Support team at [email protected] to make this request.
How are Payouts communicated?
An email will be generated that includes a Payout Note PDF (similar to a credit note). This email will be sent to the email address associated with your Stripe Connect Account:
