Vendor Payout and Settlement Policy

Overview

This Policy describes when and how a vendor’s marketplace earnings are settled to the vendor’s chosen payout account. All settlement is performed by Upmos through our regulated payment processor (currently Stripe Inc. operating Stripe Connect). The terms below are designed to balance vendor cash-flow needs with consumer protection (refunds, chargebacks) and risk management.

Payout Account Requirements

Before receiving the first payout, each vendor must:

• Complete Seller Onboarding & Verification, including ID.me, Plaid bank-account verification, and OFAC screening;
• Submit a current and accurate IRS Form W-9 (U.S. persons) or W-8BEN/W-8BEN-E (non-U.S. persons) — see 1099-K Reporting Policy;
• Accept the MPA and confirm the payout-account banking details;
• Pass all applicable sanctions screening.

Standard Payout Schedule

The default payout schedule is weekly, with funds released to the vendor every Tuesday for the prior Monday-Sunday cycle. Vendors with consistent positive performance may apply for the daily payout schedule at sole discretion; very-new vendors begin on a 14-day rolling schedule for the first 90 days.

Hold Period Per Transaction

Each individual transaction is held for a minimum of:

• Seven (7) days from the date of delivery confirmation for physical goods, to allow time for buyer inspection and same-day return claims;
• Three (3) days from the date of payment for digital goods and services where no delivery confirmation is applicable;
• Thirty (30) days for orders flagged as high-risk by our fraud detection system pending manual review.

“Funds available for payout” reflects only transactions that have completed the applicable hold period.

Rolling Reserve

Upmos maintains a rolling reserve equal to seven percent (7%) of trailing-30-day gross sales in the vendor’s settlement account. The reserve protects against chargebacks, refund obligations, and other contingent liabilities. Reserve percentages may be increased to up to thirty percent (30%) for high-risk product categories (custom goods, event tickets, subscription services with cancellation rights, dietary supplements).

Reserves are reviewed quarterly and adjusted based on observed performance.

Net Settlement Calculation

Each payout is calculated as:

Gross Sales (eligible for payout)
− Marketplace facilitator sales tax remitted on vendor’s behalf
− Upmos referral and fulfillment fees
− Refunds issued in the period
− Chargebacks and chargeback fees
− Reserves established or increased
− 1099-K backup withholding (if applicable)
+ Reserve releases
= Net Payout

Vendors receive a settlement report showing each line for the period.

Currency and Fees

Payouts are made in the same currency as the vendor’s settlement account. For multi-currency vendors, FX is performed at Stripe’s then-current FX rate (typically 1% above the wholesale interbank rate). Wire-transfer fees, returned-deposit fees, and bank-imposed receiving fees are deducted from the payout. Stripe’s standard processing fee (currently 2.9% + $0.30 per successful card charge for US-issued cards) is included in the Upmos referral fee structure.

Disputed and Held Funds

Funds may be held beyond the standard schedule when:

• A buyer initiates a refund, return, or A-to-Z claim (held until disposition);
• A chargeback is filed (held for the duration of the chargeback dispute window plus 15 days);
• An IP rights-holder issues a credible takedown notice involving the seller (held pending DMCA counter-notification);
• A sanctions-list, AML, or fraud investigation is underway (held until investigation completes);
• A court order, garnishment, levy, or other lawful process requires it;
• The vendor’s account is suspended or terminated (see Termination Policy).

Held funds accrue no interest in favor of the vendor. Held funds released following resolution are credited to the next scheduled payout.

Failed Payouts

If a payout fails (e.g., closed bank account, name mismatch, ACH return), the funds are returned to the vendor’s settlement account and the next scheduled payout is paused. The vendor is notified and asked to update the payout-account details. Repeated failures may incur a $25 per-failure administrative fee.

Statements and Reporting

Vendors may download the following reports at any time:

• Daily settlement statement;
• Monthly summary of fees, refunds, and chargebacks;
• Annual Form 1099-K (calendar year basis);
• Per-state marketplace-facilitator tax-collection summary.

Disputes Concerning Payouts

To dispute a calculation on a settlement statement, contact payouts@upmos.com within sixty (60) days of the statement. Disputes after sixty days are entertained at our discretion but are not guaranteed.

Contact

Email: payouts@upmos.com

How Can You Contact Us About This Policy?

If you have any further questions or comments or wish to report any problematic Content or Contribution, you may contact us by:

General Contact

• Phone: 1(855)637-2433 (Mon–Fri, 9 AM–5 PM CST)
• General Support: support@upmos.com
• Report Issue: upmos.com/report
• Send Feedback: upmos.com/feedback

Department Directory

Mailing Address

Upmos Inc.
9896 Bissonnet St
Houston, TX 77036
United States