> For the complete documentation index, see [llms.txt](https://help.palmstreet.app/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://help.palmstreet.app/seller/wallet-and-payment-management/how-to-use-pay-with-earnings.md).
# How to use Pay with Earnings
**Pay with Earnings** lets you use your **sales earnings** to pay for certain actions on Palmstreet — even if your current balance is low. This helps you **buy shipping labels and issue refunds** without waiting for your earnings to be released.
When you use Pay with Earnings, Palmstreet will:
1. Use your **available balance first**
2. Use your **Pay with Earnings limit** if needed
3. Charge your **backup payment method only if the limit is exceeded**
### When Sellers Use Pay with Earnings
Most sellers use Pay with Earnings when they need to **buy shipping labels before their earnings are released**.
Example:
* You sell an item for **$50**
* Your current balance is **$0**
* You need to buy a **$8 shipping label**
With Pay with Earnings:
* Palmstreet covers the **$8 shipping label**
* When your **$50 earnings are released**, the **$8 is automatically deducted**
This allows you to **ship orders immediately**.
### How to Set Up Pay with Earnings
When purchasing shipping labels, you will see a payment option called **Sales Earnings**. To set it up:
1. Select **Sales Earnings** as your payment method
2. Add a **backup payment method**
Once set up, you can start using **Pay with Earnings**.
You can also add or update your backup payment method anytime under **Profile → Settings → Earnings**
### Your Pay with Earnings Limit
Your **Pay with Earnings limit** is the maximum amount Palmstreet can temporarily cover before your earnings are released. Your limit depends on your **seller plan**, **pending shipping fees**, and **pending balance**.
Palmstreet calculates your limit based on whichever amount is highest:
* **Your plan base limit**
* **Your pending shipping fees**
* **30% of your pending balance**
However, your limit cannot be higher than your total pending balance. If you do not have a pending balance, your Pay with Earnings limit is $0.
{% hint style="info" %}
**What Changed**
We updated Pay with Earnings so your available limit can better match your shipping needs. In addition to your seller plan and shipping fees, your limit may now also increase based on **your pending sales volume**. This helps sellers continue buying shipping labels without waiting for earnings to be released.
{% endhint %}
Foundation Sellers
Foundation Sellers have a plan base limit of **$500**.
Examples:
| Situation | Pending shipping fees | Pending balance | Your limit |
| ---------------------- | --------------------- | --------------- | ------------------------------------- |
| Low shipping | $80 | $1,000 | $500 (base limit applies) |
| Higher pending balance | $80 | $3,000 | $900 (30% of pending balance applies) |
| High shipping fees | $1,500 | $3,000 | $1,500 (shipping fees apply) |
| Low pending balance | $80 | $300 | $300 (limited by pending balance) |
All Other Sellers
All other sellers have a plan base limit of **$200**.
Examples:
| Situation | Pending shipping fees | Pending balance | Your limit |
| ---------------------- | --------------------- | --------------- | ------------------------------------- |
| Low shipping | $80 | $500 | $200 (base limit applies) |
| Higher pending balance | $80 | $1,000 | $300 (30% of pending balance applies) |
| High shipping fees | $350 | $1,000 | $350 (shipping fees apply) |
| Low pending balance | $80 | $50 | $50 (limited by pending balance) |
### When Your Backup Payment Method Is Charged
Your **backup payment method** will be used if:
* The order total is **higher than your Pay with Earnings limit**, or
* Your **pending earnings cannot cover the payment**.
### Update Your Backup Payment Method
You can update or remove your backup payment method at any time.
1. Tap **Repayment history**
2. Tap the **settings icon** in the top right corner.
3. On the **Payment settings** page, tap the **edit icon.**
### View Pay with Earnings Activity
To see how Pay with Earnings was used, go to **Profile → Settings → Earnings:**
1. Tap **Repayment history**
2. Select a statement to see the transaction details
3. Tap **Show transactions** to view the breakdown of charges
### FAQs
Can my Pay with Earnings limit go above my plan base limit?
Yes. Your plan base limit is $200 for most sellers or $500 for Foundation Sellers, but your final limit can be higher if your pending shipping fees or 30% of your pending balance is higher than your plan base limit.
Can my limit exceed my pending balance?
No. Your Pay with Earnings limit cannot be higher than your total pending balance. If your total pending balance is lower than your plan base limit, your limit may also be lower than the plan base limit.
Why did my limit change?
Your limit is dynamic and may change as your pending shipping fees, pending balance, or seller plan status changes. For example, your limit may increase when eligible new sales add to your pending balance, or decrease after earnings are released from your pending balance.