Filling out payout settings
The payout settings of your account, often referred to as "the magic zone," are where you tell Gumroad where to send your money. If you live in a country with ACH payouts, it's also where you get verified by Stripe, our payout partner.
If you live in one of those countries, we can only pay you out via ACH. You can no longer be paid out via PayPal. You will be paid out in your native currency.
Choosing your account type
On the payout settings page, you can choose which kind of account you have - Individual or Business.
Here are the instances in which you would choose these account types:
- You do not have a business, or are selling as yourself
- We are paying you, not your business. In other words, the money we pay you goes to your personal bank or PayPal account, rather than that of your business.
- You are selling as your business
- We are paying your business and your business' PayPal/bank account.
If you choose a business account, you, the account creator, will serve as the "representative" for the account. If you live in a country where we pay out via bank deposits, you will be asked for information to verify your identity. There is no way around this requirement, unfortunately. It is a legal regulation that Stripe requires and also forces Gumroad to follow.
Creators living in the United States
If you live in the United States and are eligible for a 1099-K, you will be sent a 1099 in February or March.
If you set up your account as an individual, the 1099 will be sent to you and filed under your name. If you have created a business account, it will be filed under your business' information. Please make sure that if your address or your business' address changes, you update this information in your payout settings. If you neglect to do this, your 1099 will be sent to the old address.
Identity verification (for bank payouts)
Our payment processor Stripe helps us process credit and debit card payments and also manages our direct deposit payouts. As a result, we are subject to their policies, and the regulations that they are subject to when it comes to paying money directly to bank accounts.
As you may have noticed, the world is a bit of a mess, and the world of online payments is equally chaotic and replete with bad actors. To prevent money laundering, terrorist funding, and other varieties of unpleasantness, Stripe is required to follow Know Your Customer obligations. This means that depending on what country you are based in, they may ask you for different types of information, including but not limited to:
- Your date of birth, legal name, phone number, and address
- Your social security number
- A scan or image of your photo ID (passport, driver's license, or ID). Read why.
- Company Tax ID (if you are selling as a business)
- Your street address - in other words, you cannot enter a PO Box
No matter what kind of account you choose - business or individual, if you live in the US or Canada, you will be asked for your Social Security information because as the representative of the company, you are the person whose verification is needed in order for Stripe to send money to you.
If you live in one of the countries with direct bank payouts, you will at some point be asked for your photo ID, even if you've set up your account as a business. Stripe generally will ask for this information once your account has hit a particular volume (i.e. you've made over a specific amount of money), but they may also do it before your first payout. Stripe can be very persnickety about this stuff, so don't hesitate to email us if you have questions.
We understand that asking you for this kind of information online is not to be taken lightly. Thus, the information is encrypted and tokenized the moment you enter it - we at Gumroad have no access to your personal or banking information beyond the address you enter, and unless you send us a scan of your ID, we will never see it. If your account were somehow compromised, your banking and social security information would not be visible.
If you are in the USA, your Tax ID is usually the Employer Identification Number (EIN) assigned by the IRS. For Individuals/Sole Proprietorships, if you don't have an EIN, you will have to provide your SSN as your Tax ID. For additional information on what name and TIN to provide, please see instructions in the IRS Form W-9.
For other countries, you can go through the list of Tax IDs accepted by our payment processor (Stripe) here.
Problems that may occur
You may be asked for more information from Stripe if:
- The name you have entered into your account does not match the name on your ID. In other words, you are attempting to use a pseudonym, which Stripe does not currently support
- You are under the age of 18. In this case, we advise that you allow a parent or guardian to set up the account under their name, but your bank account.
- The address you entered does not match the address on your ID.
- Your company registration address can not be located on your CRN.
- The company name entered does not match your tax documentation.
- You are using a P.O. box rather than a street address.
- Your phone number is invalid or does not have the correct country code in front of it (i.e. +44, +61, etc).
Rest assured, if there is a problem or your payouts are delayed, we will work directly with Stripe to solve the lapse and get you paid as soon as possible. You might not get paid as quickly as we'd like to pay you, but you will get paid.
Identity verification (for PayPal payouts)
If you live in a country where we do not pay via direct deposits, you can ignore the information above. PayPal does not require any of this - simply your name, address, phone number, and an active PayPal account.
Q: Can I choose not to enter my information into the payout page?
A: You certainly can, but if you choose to do so, we cannot pay you out.
Q: Can you pay me with Payoneer or any means other than direct deposit or PayPal?