Set Up Teachable Payments

This article goes over how to set up Teachable Payments for schools operating within the US and Canada. Teachable uses Stripe Express to process credit card transactions. This allows school owners to receive their payouts faster and set their own payout schedules.

Eligibility

Teachable Payments is available for schools operating within the United States or Canada.

If you think you are eligible for Teachable Payments but are not able to go access it—or vice versa—you may have to change your country in your General Settings:

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Setting Up Teachable Payments

Primary owners can set up how they accept credit card payments and receive payouts in the Settings > Payments section of their school admin. To set up Teachable Payments, complete this process:

  1. Log in to your Teachable school.
  2. Click on Settings in the admin sidebar and navigate to the Payments section.
  3. Enter your phone number and click Set up Teachable Payments to start onboarding. You’ll be prompted to enter more details about your business, including your tax filing status, estimated earnings, etc. You’ll also have the option of opting-in to BackOffice during onboarding.

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NOTE: If your school is ineligible for Teachable Payments or you have not set up Teachable Payments, then your school’s payments will be processed by the Monthly Payment Gateway.

Payouts

On Teachable Payments, credit card transactions are paid out by Stripe based on the payout frequency (daily, weekly, monthly) set by the primary owner of your school. Teachable charges a $0.25 fee for each payout sent to your Stripe account. All transactions processed by Teachable Payments are paid out in USD; for example, if you price your course in Euros, you'll still be paid out in USD. 

NOTE: Once you make your first sale on Teachable Payments, it will take 7 - 14 business days to receive your first payout. This is to ensure that new Teachable Payments users are in accordance with Teachable's Terms of Use. Once you receive your first payout, any subsequent payout will occur in accordance with the schedule you've specified (i.e daily, weekly, or monthly).

If you’ve enabled PayPal as a payment option for your students, any payment processed by PayPal will not be subject to a payout fee, however, the payout frequency cannot be customized. PayPal payments will be paid out every 30 days (on the first business day of the month). Payouts for PayPal payments will be in USD.

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Credit Card Payments

Credit card payments processed by Teachable Payments are paid out via Stripe based on the payout frequency (daily, weekly, monthly) set by the primary owner of your school. Payouts are distributed on business days (excluding weekends and US banking holidays).

  • Daily - Earnings and unlocked reserves are distributed daily, however, transactions are processed on a 2-day (business) rolling period. For example, payments received on a Tuesday are paid out by Thursday, and payments received on a Friday are paid out by Tuesday.
  • Weekly - Earnings and unlocked reserves are distributed every Thursday.
  • Monthly - Earnings and unlocked reserves are distributed every 30 days on the first business day of the month.

NOTE: Teachable uses UTC to calculate when a transaction is placed. For example, transactions made at approximately 10 p.m. ET (US Eastern Time) on January 31st counts in our system as taking place early morning on February 1 in UTC. You can compare time zones here.

Authors and Affiliates

Primary owners receive author and affiliate commissions every 30 days on the first business day of the month. As a result, it’s up to them to distribute the appropriate payouts to your school’s authors and affiliates. School owners can use their school’s transaction reports to determine how much to pay out each author and affiliate.

Alternatively, if you opt-in to BackOffice, then Teachable automatically distributes payouts to your authors and affiliates for you. On BackOffice, Teachable will also automatically collect the necessary tax forms from your authors and affiliates.

Reserves

In order to account for refunds, chargebacks, and fraudulent charges, Teachable withholds a 10% reserve of each credit card transaction (after all fees and commissions). Reserves ensure that your school will not be in debt if chargebacks or refunds are issued.

In accordance with your school’s payout frequency, reserves are paid out to your primary owner 45 days after the transaction took place. For example, if your school’s payout frequency is weekly, then reserves that have been released will be paid out in the next upcoming weekly payment.

In the case of a refund or chargeback, Teachable will deduct the amount of the transaction from your school’s reserves and from your next payout (if your reserves do not cover the refunded transaction). In the case of a chargeback, Teachable will also deduct a $15 chargeback fee, along with the amount of the original transaction.

You can view when each reserve is due to be paid out in the Sales > Reserves page:

  • Total Withheld Reserves- The total amount of reserves that will be paid out incrementally over the course of the next 45 days. This is a rolling number, and assuming your school continues to have sales, will continue to change daily.
  • Reserves Unlocked Today- The total amount of reserves unlocked today that will be paid out to your school in your next payout.
  • Reserves Unlocked The total number of reserves that have been unlocked on that date.
  • Unlocked Amount - The total amount, in USD, of the reserves that have been unlocked and paid out on that date.

Transaction Fees

If your student pays using a credit card, then their payment will be processed by Stripe. Depending on whether or not you’ve opted-in to BackOffice (available on Basic plans and up), each transaction processed by Teachable Payments is subject to the following transaction fees:

 

Free

Basic

Professional

Business

Processing Fees

Payout Fees

Teachable Payments

10% + $1

5%

0%

0%

2.9% + 30¢
(US PayPal/credit card fee)

3.9% + 30¢
(International credit card fee)

4.4% + 30¢
(International PayPal fee)

25¢ per payout

Teachable Payments
With BackOffice

10% + $1 + 2%

5% + 2%

2%

2%

2.9% + 30¢
(US PayPal/credit card fee)

3.9% + 30¢
(International credit card fee)

4.4% + 30¢
(International PayPal fee)

25¢ per payout

Enabling PayPal Payments

There are two ways that you can offer PayPal as a payment option for your students on Teachable Payments: enabling PayPal through BackOffice or setting up PayPal as a custom payment gateway.

Enabling PayPal Using the Monthly Payment Gateway (Basic plan and up)

You can allow students to make purchases using PayPal by enabling the PayPal using the Monthly Payment Gateway. All PayPal payments processed by Teachable’s Monthly Payment Gateway, therefore, primary owners are paid out to their PayPal account every 30 days (on the first business day of the month). In order to enable the PayPal, ensure that you’ve opted-in to BackOffice and then complete the following steps:

  1. Log in to your Teachable school.
  2. Click on Settings in the admin sidebar and navigate to the Payments section.
  3. In the Accept PayPal Payments section, turn on the Allow students to make purchases using PayPal toggle.
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  4. Enter your PayPal email address and click Save.

Enabling PayPal Using Custom Payment Gateways (Professional plan and up)

Alternatively, if you are on the Professional plan and up, you can set up PayPal as a custom payment gateway in addition to processing credit card payments through Teachable Payments. You’ll be paid out directly by PayPal and will be subject to their fees and stipulations.

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