# 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, issue refunds, or keep your seller plan active** 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**

<figure><img src="/files/Bx8xTRLlRUIQpeCKJjh9" alt=""><figcaption></figcaption></figure>

### Your Pay with Earnings Limit

Your **Pay with Earnings limit** determines how much Palmstreet can temporarily cover before your earnings are released.

Your limit depends on your **seller plan**, **pending shipping fees**, and **pending earnings**.

<details>

<summary><strong>Foundation Sellers</strong></summary>

Your limit is **$500 or your pending shipping fees — whichever is higher.**

Example:

* If your shipping fees are **$80**, your limit is **$500**.
* If your shipping fees increase to **$1,500**, your limit automatically increases to **$1,500** to cover them.

| Situation     | Pending shipping fees | Plan base limit | Your limit                   |
| ------------- | --------------------- | --------------- | ---------------------------- |
| Low shipping  | $80                   | $500            | $500 (plan limit applies)    |
| High shipping | $1,500                | $500            | $1,500 (shipping fees apply) |

</details>

<details>

<summary><strong>All Other Sellers</strong></summary>

For most sellers, your Pay with Earnings limit depends on three factors:

* A **minimum limit of $200**
* Your **pending shipping fees**
* Your **total pending earnings**

Palmstreet calculates your limit like this:

* Your limit is the higher of $200 or your pending shipping fees, but it cannot be higher than your total pending earnings.

Example:

* If your **total pending earnings are $50**, your Pay with Earnings limit will be **$50**, even though the minimum limit is normally $200.

| Situation            | Pending shipping fees | Plan base limit | Pending earnings | Your limit                   |
| -------------------- | --------------------- | --------------- | ---------------- | ---------------------------- |
| Low shipping         | $80                   | $200            | $500             | $200 (minimum limit applies) |
| High shipping        | $350                  | $200            | $800             | $350 (shipping fees apply)   |
| Low pending earnings | $30                   | $200            | $50              | $50 (limited by earnings)    |

</details>

### 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.**

<figure><img src="/files/DvIOyrsGdyie4TfdEgvZ" alt=""><figcaption></figcaption></figure>

### 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

<figure><img src="/files/DGD1PGbMy0PDTMmvJX33" alt=""><figcaption></figcaption></figure>

### FAQ

<details>

<summary>Why is my Pay with Earnings limit higher than $200 or $500?</summary>

If your Pending Balance includes **shipping fees** that are **higher than your plan limit** ($200 or $500), your Pay with Earnings limit will automatically match the **higher shipping-fee amount** instead of the plan-based limit.

**Example:** If your Pending Balance includes $2,000 in shipping fees, your overdraft limit becomes $2,000.

</details>


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