Seven Day Hold
Understanding payment holdings and their effects
When it comes to fan or cam sites there can be a communication divide between creators and the companies, especially when it comes to payouts. Running an adult company is difficult especially when it comes to payment regulation. Quite often these regulations impact creators; however, companies do not always do a good job at explaining why this is, and who is impacting this. As a result, the relationship between creators and companies becomes further fragmented and strained.
One of the things that can frustrate creators and companies is payment holdings. When a creator makes a payout it can take several days for the money to enter their account. This is not because the company is being difficult and trying to hold money (as some argue) but is a standard banking procedure that needs to be understood.
Firstly, what is a payout?
When you receive funds the payment gateway service makes payouts to your bank account.
Payouts can take a couple days to happen. That’s why, as a performer, it may take 7 days for your funds to become available.
This isn’t Freyja being shady, we’re not hiding your money! This is because the payouts must be processed, and this can take longer especially when they are high-risk.
The payout also depends on the location of your bank.
What if you receive a payout that is negative?
Your payout will reflect the available account balance at the time it was created.
Therefore, you may have a negative account balance.
E.g. you make £500, but had to refund £600 so you have a negative balance.
What happens if the payout fails?
If your account cannot receive a payout, your bank sends the funds back to the payment gateway service.
It can take a couple business days for the bank to return the payout and provide a reason as to why this failed.
You may have to re-enter your bank accounts in your site settings to make the transaction go through.
Always make sure that your bank account information is correct and up to date.
Overall, companies need to do a better job at explaining different regulations, and procedures to creators to reduce and unnecessary misunderstandings, and creators need to also keep up to date on industry regulations and the company positions.