Payments


Understand fees, payouts, and financial management for your OpenDay business.


Overview

OpenDay uses Stripe Connect for all payment processing, ensuring secure transactions and reliable payouts. This guide explains how money flows from a customer to your bank account, details the fees involved, and outlines how to manage your finances.

How Payments Work

When a customer makes a purchase, the payment process follows these steps:


  1. A customer places an order in your shop.
  2. Stripe securely processes the payment (credit card, digital wallet, etc.).
  3. OpenDay's platform commission (based on your tier) is deducted.
  4. Stripe's processing fee (2.9% + $0.30) is deducted.
  5. The remaining net balance is added to your pending payout.
  6. Your payout is processed to your bank account on your chosen schedule.

Example Transaction

Here is a breakdown of a typical order:


  • Product price: $50.00
  • Shipping: $5.00
  • Tax: $4.00
  • Total charged to customer: $59.00

Your revenue:


  • Gross sale: $59.00
    • Platform commission (e.g., 5% Business tier): -$2.95
    • Stripe processing (2.9% + $0.30): -$2.01
  • = Net payout: $54.04

Note: You set the product price and shipping. Platform and payment fees are deducted automatically.

Fee Structure

1. Platform Commission

This fee is based on your subscription tier:


Tier Commission
Creator Launchpad 8%
Business Accelerator 5%
Enterprise Scale 2%
  • Applied to: The gross order total (product price + shipping).
  • Not applied to: Taxes collected.
  • Refunds: If you refund an order, your commission for that order is also refunded to you.

2. Payment Processing Fees

Stripe charges a standard fee for processing all payments:


  • Standard Rate: 2.9% + $0.30 per transaction.
  • International Cards: An additional 1.5% fee for non-US cards.
  • Currency Conversion: An additional 1% fee if currency conversion is required.

3. Subscription Fees

This is your monthly or annual fee for using the OpenDay platform.


  • Creator Launchpad: $39/month or $374/year (save 20%)
  • Business Accelerator: $149/month or $1,430/year (save 20%)
  • Enterprise Scale: $499/month or $1,790/year (save 20%)

Billing occurs on your signup date and is prorated if you upgrade or downgrade.

Understanding Your Revenue

  • Gross Revenue: The total amount of money collected from customers before any fees are deducted.
  • Net Revenue: The amount you receive after all fees (platform commission, payment processing) and refunds have been deducted. This is the amount paid out to you.

Payouts

Payout Schedule

You can choose how often you receive your money from your Stripe Dashboard:


  • Daily (Default): Payouts are processed every business day. This is the fastest way to get your money.
  • Weekly: Receive one consolidated payout per week on your chosen day.
  • Monthly: Receive one payout per month on your chosen date. This simplifies accounting.

Payout Timeline

From the moment of sale, funds move through several stages:


  1. Pending (2-7 days): Funds from recent sales are held by Stripe to protect against fraud and disputes. They are not yet available for payout.
  2. Available: The funds are clear and will be included in your next scheduled payout.
  3. In Transit (2-5 business days): The payout has been sent from Stripe to your bank.
  4. Paid: The funds have arrived in your bank account.

Total time from sale to bank: Typically 4-12 business days.


Payout Methods

  • Bank Account (ACH): The standard, free method. Takes 2-5 business days to land in your account once sent.
  • Instant Payouts (Debit Card): If your account is eligible, you can send a payout to a debit card within 30 minutes for a 1% fee (capped at $10).

Your Stripe Dashboard

You can access your Stripe Dashboard from your OpenDay Settings → Payouts. This is your hub for all financial management.


What you can do in Stripe:

  • View transactions: See all payments, refunds, and disputes.
  • Manage payouts: Change your payout schedule and update bank accounts.
  • Run reports: Export detailed revenue, balance, and transfer data.
  • Access tax documents: Download your 1099-K form (if applicable).
  • Manage disputes: Respond to chargebacks and upload evidence.
  • Update settings: Change your business information and notifications.

Tax Considerations

Disclaimer: OpenDay is not a tax advisor. The following information is for guidance only. Please consult a qualified tax professional to ensure compliance.


Sales Tax

You are solely responsible for collecting, filing, and remitting sales tax to the proper authorities.


  • OpenDay does not automatically calculate, file, or remit sales tax on your behalf.
  • You must determine where you have "nexus" (an obligation to collect tax) and set up your tax rates accordingly.

Income Tax

You are responsible for reporting your business income on your federal and state tax returns. Stripe will provide a Form 1099-K (if you process over $600 in a year) to help you report your gross revenue.


Your subscription fees, platform commissions, and payment processing fees are all tax-deductible business expenses.

Refund Management

Processing Refunds

You can issue a refund directly from the order details page in OpenDay.


  • The customer receives their money back in 5-10 business days.
  • Fee implications:
    • Platform Commission: OpenDay refunds your commission (e.g., 5%) back to you.
    • Stripe Processing Fee: Stripe does not refund their processing fee (2.9% + $0.30).

Example: You issue a $50 refund. The $2.50 platform commission is returned to you, but the $1.75 Stripe fee is not. This means the refund costs your business $1.75.


Partial Refunds

You can also refund a partial amount, which is useful if a customer returns one item from a larger order or as a goodwill gesture. The fee implications work the same way

Financial Best Practices

Record Keeping

Use accounting software (like QuickBooks, Xero, or Wave) to track your finances. Connect your Stripe account to automatically import all transactions. This will make tax time significantly easier.


Subscription Tier Optimization

When should you upgrade your plan? Upgrading saves you money on commissions as your sales grow.


  • Creator → Business (8% to 5%)
    • Break-even: $3,667/month in sales.

    • If you sell more than $3,667 a month, the 3% you save in commissions is greater than the increased subscription cost.

      Business → Enterprise (5% to 2%)

    • Break-even: $11,667/month in sales.
    • If you sell more than $11,667 a month, you will save money by upgrading to the Enterprise tier.

Handling Payment Issues

  • Failed Payments: If a customer's card is declined (insufficient funds, expired card, etc.), the order is not created, and no action is needed from you. The customer must retry with a valid payment method.
  • Chargebacks (Disputes): A chargeback occurs when a customer disputes a charge with their bank.
    • Stripe will notify you and temporarily pull the funds from your account.
    • You must submit evidence through your Stripe Dashboard by the deadline (e.g., shipping tracking, customer communication) to fight the dispute.
    • How to prevent: Provide clear product descriptions, ship items promptly with tracking, and offer excellent customer service.

Frequently Asked Questions

When do I get paid?

Typically 4-14 days after the sale. This includes Stripe's 2-7 day pending period, your payout schedule (daily, weekly, etc.), and the 2-5 day bank transfer time.


Can I get paid faster?

Yes, if your account is eligible for Instant Payouts, you can transfer funds to a debit card in minutes for a 1% fee.


Do I pay fees on shipping charges?

Yes. Platform commissions and processing fees apply to the total order value, which includes the product price and any shipping fees you charge.


Do I pay fees on taxes collected?

No. Platform commissions are not applied to the sales tax you collect.


What happens to fees when I issue a refund?

OpenDay refunds your platform commission, but Stripe keeps their original processing fee.