How do Payouts work?
What are Payouts?
Payouts are bi-monthly money transfers for transactions within a Gigs Connect project that pay 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 transactions from the 1st to the 15th of that month, while payouts on the 1st cover all transactions 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 occurs, such as 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 format. Because of this, it is relatively easy to miscalculate when doing a cross-check on your end.
Payment Export:
As mentioned above, the payment export that you can download from the Gigs dashboard does not include information on 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. Consequently, once the payment is collected, the payment export will likely differ from our events.
Payout Line-Items:
Revenue Line Items
Line Item | Money Flow | Definition | 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 |
Cost Line Items
Line Item | Money Flow | Definition | Calculation |
|---|---|---|---|
Taxes | Debit | Funds collected from users and withheld to cover federal, state, and local taxes and fees. | Taxes * Quantity Sold |
Recovery Fees | Debit | Fees covering administrative, legal, and regulatory costs (e.g., LNP, accessibility programs). | Recovery Fees * Quantity Sold |
Gigs Fees | Debit | The wholesale price for plans, based on contractual agreements. | Gigs Fees * Quantity Sold |
Adjustment Line Items
Line Item | Money Flow | Definition | Calculation |
|---|---|---|---|
Payout before Adjustments | Credit | The amount before refunds, disputes, and dispute fees are deducted. | Collected Payments - Taxes - Recovery Fees - Gigs Fees |
Refund Adjustments | Debit | Excluded refund costs for refunded subscriptions. | Retail Price (refunded) * Quantity Refunded |
Dispute Adjustments | Debit | Excluded costs from disputed subscriptions. | Retail Price (disputed) * Quantity Disputed |
Dispute Fees | Debit | Fees incurred by Gigs for disputed purchases. | $15 * Quantity Disputed |
Finalization Line Items
Line Item | Money Flow | Definition | Calculation |
|---|---|---|---|
Net Payout | Credit | The payout before reserves and manual adjustments. | Payout before Adjustments - Refund Adjustments - Dispute Adjustments - Dispute Fees |
Operations Reserve | Debit | 10% of the net payout held for future refund/dispute protection. | 10% * Net Payout |
Reserve on Hand | Credit | Returns the operations reserve from the previous period. | Last Month’s Operations Reserve |
Manual Adjustment | Credit/Debit | One-off credits or debits for various purposes (e.g. goodwill, unpaid SIMs). | Calculated Ad-Hoc |
Final Payout Amount
Line Item | Money Flow | Definition | Calculation |
|---|---|---|---|
Final Payout Amount | Credit | The final amount sent to your Stripe Connect account. | Net Payout - Operations Reserve + Reserve on Hand + Manual Adjustment |
Line-by-line export request:
If you need a line-by-line export of charges and fee calculations, we can provide this on an ad hoc basis. Please reach out to the Support team at support@gigs.com 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:
