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 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.

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

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 Shop 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.


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 back to you.
    • Stripe Processing Fee: Stripe does not refund their processing fee (2.9% + $0.30).

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.

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


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.