Service marketplace payments
Configuring payments for a service marketplace on Servable is surprisingly straightforward. There are a only a few terms you need to understand, and you can always edit your payments settings later.
Rate Type: Choose between hourly billing and daily billing. Most services are based on hourly billing, but Servable offers daily billing because some services are charged by the day (or half-day) rate instead of by the hour.
Hourly rate or daily rate: Depending on your rate type, you'll choose the hourly rate that users pay for the services they receive.
Minimum fare: The default minimum fare is $1 to prevent users from making requests that are too small to cover processing fees. You can either leave the minimum fare at the $1 default, or For service requests that require only a small amount of time, it’s helpful to specify a minimum fare to charge for these quick requests. Otherwise, service providers may not want to claim small requests. For example, if you’re hourly rate is $20.00, a request that takes 10 minutes to complete would only pay $3.33. You might decide that’s okay, or you might consider setting the minimum fare at $10.00. It’s up to you!
Booking fee: The booking fee is a fixed fee added to each transaction in your service marketplace, and as the service owner, you earn 100% of the booking fee. If you don’t want to take a booking fee, just leave this at $0.00. Consider using the booking fee to cover your fixed cost of moderating each service request in the service marketplace.
Service fee: The service fee is the percentage of each transaction you will earn in this service marketplace. Keep in mind that your service providers will see the amount you are earning on each transaction, so make sure you strike the right balance and take a fair percentage in return for your effort managing the service marketplace, moderating requests, bringing users to the marketplace, and maintaining a high level of service provider quality.
Transaction fee: The transaction fee is the total processing fee for each transaction, and is fixed at 3.9% plus $0.30 per transaction. This fee is inclusive of any non-subscription fees charged by Servable and is removed prior to payouts.
How Service Marketplace Payments Work
Now that we've covered the important elements, here's how payments work in a service marketplace on Servable:
When you setup your service marketplace, you connect a PayPal account where you'll receive your earnings as the owner and manager of the service marketplace
When users join, they select a payment method to pay for their service requests
When service providers join, they select a payout method to receive their earnigns for providing services
Users create requests, service providers claim requests and provide service, and then the request is completed after the user has rated their experience (and, in services with two-way ratings, after the service provider has also rated their experience)
When a request is completed, the user's payment method is charged. The transaction fee is removed, along with your booking fee (if any) and your service fee percentage. Right away, the service provider's earnings are processed as a payout - but, it can take up to several days before the service provider's earnings appear in their preferred payout account.
Meanwhile, Servable initiates a transfer to your connected PayPal account, which is subject to a $0.25 fee per transfer. These transfers can take up to 7 days to appear in your PayPal account.
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