Understanding Payment Processing

How Payments Work on Local Collab

Local Collab uses a secure escrow system to protect both brands and creators. When a brand creates a campaign and selects creators, the payment is held securely until the work is completed and approved.

Payment Flow Overview

1. Campaign Creation: Brand creates campaign and sets budget
2. Creator Selection: Brand selects creators and confirms collaboration
3. Payment Hold: Brand's payment method is charged and funds are held in escrow
4. Work Completion: Creator completes and delivers the agreed work
5. Review Period: Brand reviews and approves the deliverables
6. Payment Release: Funds are released to the creator's account
7. Platform Fee: 15% automatically deducted from creator payment

For Creators: Getting Paid

Setting Up Your Payment Account

To receive payments, creators must set up a Stripe Connect account:

• Go to your Creator Dashboard
• Navigate to "Payout Settings"
• Click "Connect Stripe Account"
• Complete the Stripe onboarding process
• Verify your identity and bank account

When You Get Paid

Creators receive payment after:

• Completing all agreed deliverables
• Brand approves the work (or 7-day auto-approval period expires)
• Stripe processes the transfer (2-3 business days)

Payment Timeline

• Immediate: Funds released from escrow upon approval
• 2-3 Business Days: Standard bank transfer processing time
• Weekends/Holidays: May add additional processing time

For Brands: Making Payments

Accepted Payment Methods

Brands can pay using:

• Credit Cards: Visa, Mastercard, American Express, Discover
• Debit Cards: Most major debit cards
• Bank Transfers: ACH transfers (US only)
• Digital Wallets: Apple Pay, Google Pay (where available)

When You're Charged

Your payment method is charged when:

• You confirm creator selection for a campaign
• The exact campaign amount you agreed to pay
• No additional platform fees for brands

Payment Security

Your payment information is protected by:

• PCI DSS compliance
• 256-bit SSL encryption
• Stripe's fraud detection systems
• Two-factor authentication options

Platform Fees

Fee Calculation Example

No Hidden Fees

Complete transparency with no surprise charges:

• Brands: Pay only the campaign amounts you agree to
• Creators: Keep 85% with automatic 15% deduction
• No setup fees, monthly fees, or withdrawal fees for anyone
• No currency conversion fees (for USD transactions)

Payment Disputes and Resolution

Dispute Process

If there's a disagreement about payment:

1. Direct Communication: Try to resolve with the other party first
2. Platform Mediation: Contact Local Collab support for assistance
3. Evidence Review: Provide documentation and evidence
4. Resolution: Local Collab makes a final decision based on evidence

Common Dispute Reasons

• Work not delivered as agreed
• Quality doesn't meet expectations
• Missed deadlines
• Communication breakdown

Protecting Yourself

For Creators:

• Document all work and communications
• Follow campaign briefs exactly
• Communicate proactively about any issues
• Deliver work on time

For Brands:

• Provide clear, detailed campaign briefs
• Communicate expectations upfront
• Review work promptly
• Provide constructive feedback

International Payments

Supported Countries

Local Collab currently supports payments in countries where Stripe Connect is available. This includes:

• United States
• Canada
• United Kingdom
• European Union countries
• Australia
• And many others

Currency Considerations

• All campaigns are priced in USD
• International creators receive payments in their local currency
• Exchange rates are determined by Stripe at the time of transfer
• No additional currency conversion fees from Local Collab

Tax Considerations

For Creators

Important tax information for creators:

• Creator earnings are considered taxable income
• You're responsible for reporting earnings to tax authorities
• Local Collab provides annual earning summaries
• Consider consulting a tax professional

For Brands

Business tax considerations:

• Campaign expenses are typically tax-deductible business expenses
• Keep records of all campaign payments
• Local Collab provides detailed payment receipts
• Consult your accountant for specific guidance