This article shows you how to set up payments in your Teachable School.
Finding the Payments Area
Understanding Payment Options
You have two basic options when it comes to processing student payments and receiving your earnings: go through Teachable’s default payment gateway, or set up a custom gateway.
Teachable Payment Gateway
When you use Teachable’s payment gateway, we handle all payment processing and distribute payouts. We distribute payouts to owners, authors, and affiliates on the 1st of each month, unless that falls on a weekend or holiday. Note that due to Teachable’s 30-day refund policy, we must hold funds for at least 30 days before releasing them to you; for instance, if you make a sale on June 15th, you’ll be paid for it on August 1 (or the next closest business day).
Additionally, when you use Teachable’s gateway, we will automatically deduct a transaction fee (2.9% + 30 cents), as well as author payments, affiliate commissions, etc. before issuing payment.
Custom Payment Gateways
When you set up a custom gateway, you process student payments and are paid directly, receiving earnings instantly. Rather than paying Teachable’s transaction fees, you pay transaction fees directly to Stripe or PayPal.
Since payments over custom gateways never touch our accounts, we cannot make deductions from them to pay your authors and/or affiliates. Instead, we record the amounts that you owe them in the transactions report so you can make the payments on your own.
Setting Up the Teachable Gateway
When you set up your Teachable school, the default payment method is for Teachable to process payments using our own gateway.
NOTE: At this time, Teachable only distributes payouts via PayPal. To receive payouts, you must input your PayPal email address.
To receive payouts from Teachable, complete this process:
- Enter your email address in Settings > Payouts in the Teachable Payouts section:
- Click Save.
- A notification will appear at the bottom right-hand side of your screen letting you know changes have been saved.
Setting Up Custom Gateways
Custom gateways allow you to receive payouts instantly as a school owner.
NOTE: Setting up custom gateways is for professional plans or higher. Learn about Teachable’s pricing here.
Teachable accepts student payments through either Stripe (credit/debit cards) or PayPal (USD purchases only). Therefore, to be paid for credit/debit card purchases instantly, you must link a Stripe account. If you want to be paid for PayPal purchases instantly, you must link a PayPal account. Stripe and PayPal payment gateways can be added independently of each other.
Connecting Your Stripe Account With Teachable
Here is how to set up your Stripe account, step by step.
- Inside Settings > Payments, click Switch to Custom Gateways.
- Click Connect with Stripe button.
- You will be redirected to a new webpage on Stripe where you can log into an existing Stripe account or create a new one.
- If you’re creating a new account, fill out the required information. When you’re done, click Authorize access to this account.
- Otherwise, log into your existing account to connect with Stripe.
- Upon successful connection, you will see an alert at the bottom of your screen reading Stripe Connect gateway has been successfully set up.
- Inside the Stripe area, you will also see your Client ID and API Key.
Connecting Your PayPal Account With Teachable
Connecting your PayPal account with Teachable is a slightly more cumbersome process. PayPal uses API credentials to identify each account, and these credentials are needed to verify that a request is being made through a valid PayPal account. Also be aware that students can only pay with PayPal when courses are priced in USD.
NOTE: To successfully connect your PayPal account to Teachable, you must have a PayPal business account.
- Go to PayPal Developer. Keep in mind that this is different from the normal PayPal site, so please ensure that you are on the right page before starting.
- Sign into your PayPal account
- Click Dashboard in the top right corner.
- From there, visit My Apps & Credentials in the Dashboard.
- Scroll down to REST API apps and click Create App.
- Fill out the appropriate information. The App Name doesn't matter, but we do recommend calling it “Teachable” so it’s easier to keep track. The Sandbox developer account should automatically populate. If not, you may need to create one. This is done in Sandbox > Accounts on the lefthand tab.
- Click Create App.
- Make sure to click Live instead of Sandbox in the top right corner of the app.
- In the Live API Credentials section, you’ll see your PayPal account email, Client ID, and Secret (aka API) key. Again, if you do not have a PayPal business account, this information will not be shown.
- Return to Teachable and copy this information to the PayPal section of Payment Gateways.
- Click Save, and you’re done.
A few extra notes to keep in mind:
- You can only add a Stripe account if you’re able to create one. Stripe only works in select countries. Visit Stripe's website to see if you’re able to create a Stripe merchant account.
- You'll need to set up both Stripe AND Paypal custom gateways to get paid out instantly and avoid us putting a partial hold on your funds.
- Payments through your Stripe account will be charged a transaction fee by Stripe (see Stripe's pricing): 2.9% plus 30 cents per transaction, in addition to a small fee if the payment involves currency conversions. This means that a custom gateway for Stripe doesn’t save you money compared with Teachable’s default gateway.
- Payments through PayPal could be charged more or less than Teachable’s fee, depending on the transaction fee you have worked out with them.
- It is important that you handle refunding students only through the Teachable Admin interface. If you refund students directly via Stripe or PayPal, the transactions will not show as refunded on Teachable.
- PayPal will not display as a payment option for courses that have recurring pricing plans and/or are priced in a currency other than USD.
- If you set up a custom gateway using only PayPal, you will still be listed as under the Teachable gateway. This is because PayPal only processes one time payments in USD. If Stripe is not setup, any payment that does not go through PayPal (course subscriptions, payments in non-USD, etc.) will be processed through the Teachable payment gateway, and therefore be subject to transaction fees.