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 forfeiture mechanism for unpaid earnings when creators change their payout country or payout method. Under the revised policy, unpaid amounts held in third-party payment accounts specific to a payout country cannot be transferred to a different country's account and will be forfeited when the change takes effect. Amounts held in Gumroad's own accounts are not subject to forfeiture. Gumroad will notify creators of any amount that would be forfeited and require confirmation before processing the change. You can review the notification Gumroad provides before confirming a payout country or method change to understand what amounts, if any, would be affected.
View change record →The updated terms authorize Gumroad to place holds on supplier funds in its sole discretion for reasons including suspected violations, elevated chargeback risk, misleading content, pending reviews, or payment partner requirements. Held funds remain in the supplier's account balance but have no fixed or maximum hold period; Gumroad will release them only when the basis for the hold is resolved to Gumroad's reasonable satisfaction and payment partners permit the payout. The terms state that any published hold timeline is an estimate and not a commitment, and that Gumroad may limit or delay notice of holds where notice would compromise investigations or risk controls.
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
the Service Provider becomes insolvent or is genuinely unable to honor your booking – in which case we'll do our best to arrange alternative transportation (and we'll refund you in full if we can't)
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In the event of any such termination, Anyscale will refund to Customer a pro-rata portion of the Fees that have been prepaid but unused for the applicable Platform Services.
"If Supplier (or Gumroad, when selling a specific Supplier's Products) 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 or not yet paid to you (as applicable) 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 172 platforms. See the full comparison.
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