Groupon’s New Merchant Terms Delay Payout

By  |  May 7, 2012
 | 

Groupon is changing its merchant terms to reduce its risk exposure by paying out revenues from deals more slowly.

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    U.S. merchants who use Groupon for deal offers are paid at three separate times: they receive one-third of the deal’s revenues at the deal’s close; another third 30 days later; and the balance 60 days later. According to VentureBeat, Groupon is now changing its terms to pay one-fourth of deal revenues at close; another quarter after 30 days; and the remaining 50 percent balance after 60 days.

    The new terms also include a refund reserve to cover losses, VentureBeat’s Rocky Agrawal says.

    Read the full story here.


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