Did Gumroad just get dumped by PayPal?

RN

Email received on Wed, 16 Oct 2024 22:11:34 (UTC)

In case the image above doesn't load, here's a transcript:

Important: Update Your Payout Method on Gumroad

Hello (...),
We wanted to inform you that PayPal has suspended Gumroad's use of their service.
As a result, we can no longer process payouts to PayPal accounts.

We've invested heavily in direct bank transfers for nearly every country. We encourage you to connect a bank account directly to your Gumroad account to ensure uninterrupted payouts.

To update your payout method:

1. Log in to your Gumroad account
2. Go to Settings > Payments
3. Choose "Bank Account" under "Payout method"
4. Enter your bank account details and submit

If you're based in a country where we don't yet support direct bank transfers (such as (...)), you can change your country to one where you have identity verification and a bank account. This will allow you to receive payouts through direct bank transfer.

We apologize for any inconvenience this may cause. Our team is working diligently to ensure smooth payouts for all our creators.

If you have any questions or need assistance, please don't hesitate to contact our support team.

Thank you for your understanding and continued support.
Best regards, The Gumroad Team

548 Market St, San Francisco, CA 94104-5401, USA

Powered by GUMROAD

zetheros

Gumroad had it coming. Always telling Paypal they were 'just on a business trip with colleagues', that they're just 'old friends' with credit cards. Glad Paypal has gotten it through their heads that Gumroad was just playing them, messing with their feelings and treating them no better than an IOU note or a Domino's coupon for a buy 1 free 1 personal sized pizza.

Hope Paypal can move on from this mess, godspeed

Zack Maxwell

This has me wondering if it's a good idea to drop my own assets from Gumroad. I've never made much from it anyway, and they're sure to make less now. But this paints Gumroad in a real suspicious light as well.
Anyone know why they were dropped by PayPal?

RN

Zack Maxwell said:

This has me wondering if it's a good idea to drop my own assets from Gumroad.

I was writing that "you probably should, just for the sake of it", but their website got a UX makeover and made things very confusing (and I personally find their UI not very pretty). Their homepage has no link to a help section anymore, it's now an infinite-scroll of their top selling stuff. You need to click the "Start Selling" button to get to their actual documentation: https://gumroad.com/about

They still have Stripe as an alternative payment option, and from that email it seems there's also a direct bank deposit option for some countries, which is probably ideal if your country is supported (mine isn't).

Note that they require you to have accumulated at least $10 in your balance before a payout happens, and for brand new accounts there's a 1 ~ 2 week verification period. And they might ask for tax information (personal info etc.), which some people have complained about.

...other than that, do it

ryonaln

Zack Maxwell said:

This has me wondering if it's a good idea to drop my own assets from Gumroad. I've never made much from it anyway, and they're sure to make less now. But this paints Gumroad in a real suspicious light as well.
Anyone know why they were dropped by PayPal?

My sincere advice is to give up on them, I have 2 gumroad accounts selling 2 different items, before they were removed by paypal, they locked my 2 accounts. I asked the reason and got no answer, the money in the account they said they would pay but they banned me from accessing to change payment method, so it can be considered that they stole my money )

RN

That's messed up, sorry to hear that. 

PolyHertz

Gumroad has never given me issues as a seller, but Paypal did back when I sold stuff through ebay. Never linked them as a result, but I am curious exactly why the two companies split ways.

Zack Maxwell

RN said:

Zack Maxwell said:

This has me wondering if it's a good idea to drop my own assets from Gumroad.

I was writing that "you probably should, just for the sake of it", but their website got a UX makeover and made things very confusing (and I personally find their UI not very pretty). Their homepage has no link to a help section anymore, it's now an infinite-scroll of their top selling stuff. You need to click the "Start Selling" button to get to their actual documentation: https://gumroad.com/about

They still have Stripe as an alternative payment option, and from that email it seems there's also a direct bank deposit option for some countries, which is probably ideal if your country is supported (mine isn't).

Note that they require you to have accumulated at least $10 in your balance before a payout happens, and for brand new accounts there's a 1 ~ 2 week verification period. And they might ask for tax information (personal info etc.), which some people have complained about.

...other than that, do it

I think you misunderstood. Or maybe I've misunderstood you.
I've had assets up on Gumroad for years, but it averages less than a tenth of the sales Artstation gets me and has higher royalties.
If I have to worry about them doing shady crap and potentially screwing me over somehow, it doesn't seem worth it.

RN

@Zack Maxwell I was definitely the one that misunderstood. I thought you wrote "drop my own assets ON Gumroad", as in, putting them up for sale heh
Interesting to know about Artstation store.

@PolyHertz I also don't know why it happened. Gumroad used to have some NSFW-friendly policies and then changed their stance on that (Reddit thread link), so now I have no guesses what the cause could be.