⭐ Seller Payout Policy

🧾 Overview

Class Threads processes all customer payments securely at checkout. Sellers are paid directly by Class Threads according to the payout schedule below. Payouts are issued only after the refund window for each order has closed and after any applicable adjustments have been processed.

This policy ensures predictable payouts, clean accounting, and a smooth experience for all sellers.

🧩 How Payouts Work

  • Customers pay Class Threads at checkout.

  • Seller earnings are calculated for each completed order: item price + delivery credit (if applicable) – marketplace commission

  • Payouts are issued after the refund window closes for all orders included in that payout cycle.

  • Sellers receive payouts based on their assigned payout tier.

  • Payouts are sent via the seller’s chosen method: ACH bank transfer (recommended), PayPal (seller pays fees), or paper check ($1.50 fee).

  • Sellers can view their earnings and payout history in their Seller Dashboard.

💳 Payout Method Fees

Some payout methods charge processing or handling fees. When a seller chooses a payout method that includes fees (such as PayPal or paper checks), these fees are deducted from the seller’s payout.

This ensures:

  • predictable payouts

  • clean accounting

  • no unexpected costs for Class Threads

Sellers can avoid payout fees by selecting a fee‑free payout method such as ACH bank transfer.

For full details on platform fees and payout‑related deductions, please see the Fee Policy.

🏦 Supported Payout Methods

1. ACH Bank Transfer (Recommended — No Fees)

ACH is the default and preferred payout method. Sellers enter their bank information securely through Bill Pay during their first payout window. Class Threads never sees or stores bank account details.

Fee: $0 Best for: All sellers who want the full payout amount with no deductions.

2. PayPal (Optional — Seller Pays Fees)

Sellers may choose to receive payouts via PayPal.

PayPal deducts 2.99% + $0.49 from each payout. These fees are paid by the seller and are not reimbursed by Class Threads.

Fee: 2.99% + $0.49 (deducted by PayPal) Best for: Sellers who prefer PayPal and accept the fees.

3. Paper Check (Optional — $1.50 Fee)

Sellers may request a paper check instead of ACH or PayPal.

A $1.50 processing fee is deducted from the payout amount.

Fee: $1.50 Best for: Sellers who prefer physical mail and accept the fee and slower delivery time.

🚫 Not Supported — Venmo

Venmo requires a Venmo Business Profile to receive payments for goods and services. To avoid seller friction and additional fees, Venmo is not supported at this time.

🌱 Payout Tiers

Sellers are automatically assigned to a payout tier based on their completed monthly order volume. Tiers are reviewed on the 1st of each month.

Tier 1 — Low‑Volume Sellers

0–10 orders per month Payout Frequency: Monthly Payout Date: 1st business day of each month

This tier includes most parent, student, and casual alumni sellers. Monthly payouts keep the process simple and predictable.

Tier 2 — Medium‑Volume Sellers

10–50 orders per month Payout Frequency: Biweekly Payout Dates: 1st and 15th of each month

This tier is for active sellers who list regularly and maintain consistent sales.

Tier 3 — High‑Volume Sellers

50+ orders per month Payout Frequency: Weekly Payout Day: Every Friday

This tier is reserved for high‑volume sellers who require more frequent payouts. Weekly payouts may transition to automated payouts in future phases.

🔍 Order Verification Before Payout

To protect buyers and sellers, Class Threads verifies:

  • order payment status

  • cancellations

  • refunds

  • disputes or chargebacks

  • fulfillment issues

Orders with unresolved issues may be held until the next payout cycle.

⏳ Refund Window Requirement

Payouts are issued only after the refund window has fully closed for all orders included in the payout.

This ensures:

  • buyers have time to report issues

  • sellers are protected from negative balances

  • payouts remain clean and final

If an order’s refund window extends past a seller’s normal payout date, that order will roll into the next eligible payout.

📦 Delivery & Local Pickup Earnings

Sellers receive:

  • 100% of the item price minus marketplace commission

  • The delivery credit (if the buyer selected delivery)

  • 100% of local pickup earnings

The delivery credit is included in the payout for delivered orders.

🧮 Commissions

Marketplace commission is deducted automatically from each order before payout. Commission rates are published in the Seller Fee Policy.

🗓️ Payout Calendar

Payout windows occur on a predictable schedule based on your payout tier. Exact dates may vary slightly due to weekends, holidays, or refund windows.

🛑 Payout Holds

Payouts may be temporarily held if:

  • seller payout information is incomplete

  • an order is under review

  • a dispute or chargeback is pending

  • fraudulent activity is suspected

Sellers will be notified if a hold is placed and what steps are required to resolve it.

📣 Communication

Sellers receive an email confirmation each time a payout is issued. Payout history is always available in the Seller Dashboard.

🧭 Future Automation

As the marketplace grows, Tier 3 sellers may be eligible for automated payouts through PayPal Payouts or other supported methods. Additional automation may be introduced for Tier 2 sellers in later phases. Sellers will be notified before any changes take effect.