If you are setting up your Buzzbassador Payout Settings, you may be wondering: what exactly is the "Payout Processing Period", and why do I need to set it? That's what this article is here to explain!
What is the Payout Processing Period?
The Payout Processing Period is the amount of days between when an ambassador generates a sale, and when their commission shows up as payable in your Payout List.
Let's use an example:
The default Payout Processing Period that Buzzbassador sets for your account is 30 days. So let's say you keep the default settings, and go with a Payout Processing Period of 30 days.
When your ambassador's code is used to place an order on your shop, the order will show up in your Orders log page. The app will then calculate the commission that the ambassador earns from that sale based on the commission rules you have set.
BUT, you will not be able to pay the ambassador this payout in Buzzbassador until the 30 day processing period has passed.
After those 30 days have passed, that payout will show up in your "Ready Payouts" list on the "Payout List" page, and you will be able to pay your ambassador that commission.
Why is the Payout Processing Period important?
The main reason the Payout Processing Period comes in handy is the potential of returned/refunded orders. Since all Buzzbassador ambassador payouts are processed via PayPal, once an ambassador is paid commission, there is no way to get that payment back.
So let's say your ambassador's code is used to place an order on your shop, but the customer who placed the order wants to return their item(s) for a refund. Let's say your return/refund policy allows for a 30-day return/refund period. Then you would want to make sure your ambassador's payout doesn't go out until after that 30-day period, just in case the particular order that commission was linked to is refunded.
So, in summary: the main use case for the Payout Processing Period is to prevent your ambassadors to get rewarded for refunded orders (which would cause you to lose money). So, we recommend setting your Payout Processing Period to the same amount of days as your return/refund policy allows for!
If you need any further help, please don't hesitate to send us a chat at the bottom right corner of your app screen, or email us at [email protected].