This analysis describes what Gumroad's agreement states, permits, or reserves. It does not constitute a legal determination about enforceability. Regulatory applicability and practical outcomes may vary by jurisdiction, enforcement context, and individual circumstances. Read our methodology
A rolling 90-day reserve on 25% of funds can materially delay a Supplier's access to a significant portion of their earnings whenever the refund rate threshold is crossed.
The updated terms establish a more permissive multi-account structure: users may now hold multiple accounts for genuinely separate brands or businesses, provided registration data is true and accurate for each account. However, the revised policy strengthens enforcement against account evasion by explicitly prohibiting multiple accounts created to evade suspension, termination, or enforcement action, or to misrepresent identity or conceal that controlled accounts are related. Users with existing multiple accounts are required to identify them to Gumroad on reasonable request; Gumroad also requires that any additional accounts created through Gumroad's account-creation feature be used to maintain account association in its records.
View change record →The updated terms authorize Gumroad to place holds on supplier earnings indefinitely based on suspected violations, elevated chargeback risk, misleading marketing, incomplete identity verification, or payment partner requirements—without specifying a maximum hold period or guaranteed release timeline. Held funds remain in account balances but do not accrue interest and are not applied to Gumroad's benefit. The company will notify suppliers where practicable, but may withhold notice if it would compromise investigations or risk controls. Suppliers retain the ability to continue selling even while funds are held, but cannot access those earnings until Gumroad determines the basis for the hold has been resolved to its reasonable satisfaction.
View change record →A Supplier whose refund rate exceeds 15% will have 25% of their funds pending settlement withheld by Gumroad for 90 days on a rolling basis.
How other platforms handle this
For subscribers and purchasers of Virtual Items residing in the Republic of Korea: in accordance with local law, you are entitled to a full refund of your subscription and/or unused Virtual Items during the 7 days following the purchase.
If you are on a paid subscription and we discontinue the Service you are using during your subscription...if we're unable to do so, we will provide you a pro-rata refund of fees prepaid for the remaining period of your subscription.
The refund will cover the relevant subscription fee prorated from the date you request cancellation to the end of the relevant subscription period you have paid for.
"If Supplier...experiences a refund rate in excess of 15%, Supplier hereby authorizes us to hold in reserve an amount equal to 25% of Supplier's funds pending settlement...for 90 days on a rolling basisExcerpt from Gumroad's Terms of Service
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A rolling 90-day reserve on 25% of funds can materially delay a Supplier's access to a significant portion of their earnings whenever the refund rate threshold is crossed.
A Supplier whose refund rate exceeds 15% will have 25% of their funds pending settlement withheld by Gumroad for 90 days on a rolling basis.
ConductAtlas has identified this type of provision across 178 platforms. See the full comparison.
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