Key Points:

• Seller payouts are determined by monthly performance reviews, which set both your payout timing (Settlement Tier) and the portion of funds held in reserve.
• Reserve funds are held for 30 days to cover potential returns or refunds, and any unused reserves are released to you after this period.
• TikTok Shop may adjust your payout schedule or reserve level at any time based on account status or security checks.

Purpose and Scope

The Dynamic Settlement and Reserve Policy is here to help you get paid quickly and reliably, while making sure everything follows platform guidelines. It has two main parts:

1. Settlement Tiers – This determines when your earnings (minus any reserves) are paid out, based on successful order delivery and your performance as a seller.
2. Reserve Levels – A portion of your funds is held temporarily to cover possible returns or refunds. If these reserve funds aren’t needed, they’ll be released and made available to you after 30 days.

The normal payout will be as given below:
To decide the settlement tier and reserve levels, seller evaluations are conducted on the 1st of every month. TikTok Shop evaluates a seller's performance based on:

• Shop Performance Score(SPS)
• Number of orders successfully delivered in the previous 15 - 45 days
• Temporary account restrictions (if any)

This evaluation determines which settlement tier and reserve level a seller qualifies for based on the criteria below. Note: Shop Performance Score(SPS) can be checked in Seller Center.

Settlement Tier

There are five tiers of settlement periods.

• Introductory Settlement Period: An introductory settlement period is for newly onboarded sellers or sellers on probation.
• Standard Settlement Period: This is the default tier that automatically applies to all sellers out of probation.
• Accelerated Settlement Period: This tier offers a faster settlement period compared to the Standard, and eligibility is determined by shop performance.
• Express Settlement Period: The quickest settlement period available on TikTok Shop. Express Settlement is assigned based on your shop performance.
• Deferred Settlement Period: This tier occurs while TikTok Shop is completing platform and/or seller security checks.

Sellers may be placed in the Deferred Settlement Period at any time during the month while TikTok Shop completes platform and/or seller security checks. For more information, refer to the FAQs: Temporary Account Restrictions article.

Reserve Level

A portion of earnings for each delivered order will be retained in reserves for a period of 30 days from delivery of the order, based on the reserve level assigned to the shop for the month.TikTok Shop operates using three reserve levels: Level 1, Level 2, and Level 3.
If you have questions regarding settlement tier eligibility, please contact TikTok Shop Customer Service.
Note: Sellers can explore the Daily Advance feature, which provides up to 80% of the shipment amount the day after shipment. Eligibility is determined by Storfund based on business performance. For details on how it works and associated costs, refer to the Learn About Daily Advance article.

Enforcement Actions and Appeals

We regularly review shops for compliance with our policies. If violations are identified, we will take enforcement actions on your shop. This may include, but is not limited to:

• Deducting points from your Account Health Rating
• Removing product listings
• Revoking your access to offer products for sale
• Issuing refunds to customers

For more information on enforcement actions, refer to our Seller Enforcement Policy. If you would like to appeal an enforcement action, visit the Appeals section for guidance.