DaoPay Blog

As you might probably know, our standard payout terms are End-Of-Month + 60 days, in some countries it’s even +90 days, which, without doubt, is a pretty long time if you’re eager to receive your hard-earned money. I know from some support e-mails and  personal discussions that to some folks, it appears as if we’re keeping our merchants’ money idling on our bank accounts to make a buck from the interest. Nothing is further from the truth, and I’d like to shed a little light on this issue:

We would love to pay merchants at the end of each month without any additional delays and we are always working on ways to reduce payout delays as much as possible. There are a couple of obstacles though that we need to resolve, and while some issues are easier to solve than others, a few are just unchangeable facts of life, two of them being fraud and defaults.

Without getting into too many of the messy details: in almost all countries, governments try to reduce the risk of fraud with Consumer Protection Laws. These laws usually allow consumers to reverse or object transactions within a period of 40 or more days. During this period, a consumer can demand his or her money back, which means that even though the recipient might have received money on their bank account, they can’t be sure that they can actually keep it. In other words, phone carriers can not release funds to us until this period has passed and all funds are safe. This is the same reason why credit card companies usually pay merchants after 60 days.

Summary

• Consumer Protection Laws allow 40 days or more for chargebacks
• Carriers pay us after they have received payments and the Consumer Protection period has passed
• Once we’ve received the funds from carriers, we pay merchants as soon as possible
• daopay pays out almost as quickly as most leading credit card processors

Zero-Chargebacks Guarantee

The positive side of all of this is that we are able to employ a zero-chargeback guarantee in most countries. You don’t have to handle any of the administrative and financial hassles of chargebacks yourself – it’s been taken care of for you.

I hope this helps clarify things a little. The telecom business is utterly complex – just remember how difficult it is to choose a phone plan. We try to do our best to shield merchants and developers from all this complexity in 200 countries and hundreds of providers. Of course, we’re always open for suggestions. If you have feedback or ideas how we can effectively reduce payout delays, please get in touch with us – we’d like to hear from you and welcome your comments