Updated 4.15.24
The following terms (these “Payment Terms”) govern payments you receive through Thefolklore.com website (the “Site”), operated by The Folklore Group, Inc 26 Broadway, New York, NY 10004 (“The Folklore”, “we” or “us”). Card payments will be processed from the United States.
Please read these Payment Terms carefully before making or receiving payments through the Site. By making or receiving payments through the Site, you accept and agree, on behalf of yourself or on behalf of your employer or any other entity (if applicable), to be bound and abide by these Payment Terms. These Terms are supplemental to The Folklore’s Terms of Service, as applicable (“Terms of Service”).
1. Key Terms
Capitalized terms used but not defined herein shall have the respective meanings given to them in the Terms of Service.
Brand means a seller who offers to sell and/or sells its products to Retailers through the Site.
Order is the page that lists all of the details for an order submitted by a Retailer on the Site.
Payment Services Provider(s) are service providers that provide payment services to Brands and Service Providers in connection with the Site and currency exchange services in connection with payments in local currencies.
Premium Retail Partners are a select group of distinguished department stores, e-commerce retailers, and specialty stores that are permitted to use their internal ordering systems to submit orders.
Products are actual products upload by the Brand to the Site.
Retailer means a buyer who purchases products through the Site for the purpose of resale.
2. Receiving Payments
2.1 General
a.
Commission is calculated based on the dollar amount of the Order subtotal. Any items that a Retailer marks as damaged, missing, or otherwise defective are deducted from the payout of the Order (The Folklore does not receive a commission on these items). If commission was already collected on these items, the Brand must reach out to brands@thefolklore.com to request a return of commission for the damaged, missing, or otherwise defective items. The Brand has three months to make this request before The Folklore is no longer obligated to return funds.
b. Once a Brand has chosen to cancel its account, it will continue to have access to the account until their membership term expires. If any Orders are placed and accepted on the Site by a Retailer during the active term period of a membership, even after cancellation is made, eligible commission will be owed and collected. If commission cannot be automatically collected at the time of order payment because the payment was not processed on the Site, the Brand will be invoiced for commission based on the original Order details visible to us on the Site.
c. Any orders received during the membership term period by a Premium Retail Partner that discovered the Brand through the Site, The Folklore Services, or a The Folklore event, even after the Brand has canceled its account, will be subject to commission.
d. Any Brand that is on a monthly subscription plan must pay commission for any Orders received by a Premium Retail Partner that discovered the Brand through the Site, services by The Folklore, or a The Folklore event for up to 12 months after their term expires. These Brands will be required to alert us of any Orders and send the official purchase order agreement with the final total, and we will send an invoice that must be paid according to the normal commission payment terms.
e. If we become aware that any Orders were placed and we were not alerted by the Brand, in addition to the commission and any late payment fees, we will charge a penalty of $150 for each Order the Brand failed to notify us of. Late fees will be based on The Folklore not receiving commission payment 60 days after the order was placed. Our typical late fees will apply.
d. Appointment as Limited Payment Collection Agent: Brand hereby appoints The Folklore as Brand’s limited authorized payment collection agent solely for the purpose of accepting payments (via its Payment Services Provider, if applicable) from Retailers, and remitting those payments to Brand. Brand agrees that payment from Retailer to The Folklore shall be considered the same as a made directly to Brand. Retailers’s payment obligation to Brand will be satisfied upon receipt of payment by The Folklore (or its Payment Services Provider, as applicable), and The Folklore (via its Payment Services Provider, as applicable) is responsible for remitting the funds to Brand in the manner described in these Payment Terms.
e. The Folklore partners with Payment Services Providers for purposes of collecting payments from Retailers, transferring such payments from Retailers to Brands, and holding funds.
2.2 Payment Terms
a. Brands have the ability to set their own order payment terms on the Site from a pre-selected drop-down list of options. Retailers are required to pay for Orders according to the payment terms the Brand sets, which appear at checkout and on the page that allows the Retailer to accept the Order. The payment options Brands can choose from include:
i. Net terms (30-90 days)
ii. Deposit and balance upon delivery (10%-70% deposit)
iii. Deposit and net terms for balance (10%-70% deposit and 30-60 days net terms for balance)
b. If a Brand is negotiating payment terms for an Off Platform Order with one of our Premium Retail Partners, it is between the Brand and the Retailer to mutually agree upon when payment is required.
2.3 Payment Charges
The Folklore uses auto-debiting to collect order payments from Retailers. Auto-debiting is triggered by the payment terms Brands set and order milestones. Retailers’ payment methods are kept on file so Brands do not have to manually request payment from the Retailer, it will be automatically debited.
a. Deposits: If a Brand's payment terms require a deposit, at checkout the Retailer will see the deposit amount. In order to submit the Order, the Retailer must input its payment details during the checkout process. By selecting to submit an Order, the Retailer is agreeing that upon the Brand accepting the order, the deposit amount shown will be automatically charged. The deposit amount is based on the payment terms the Brand sets and order milestones.
b. No Deposits: If a Brand's payment terms do not require a deposit, at checkout the Retailer will see the amount owed and when it is due. Even if a deposit is not due, in order to submit the order, the Retailer must input its payment details during the checkout process. By choosing to submit an Order, the Retailer is agreeing that upon the Brand accepting the Order, it will be automatically charged when the conditions of the payment terms have been met according to order milestones.
c. Balances: If a Brand’s payment terms require a deposit and the Retailer has paid that deposit, the balance of the order payment will be auto-debited from the Retailer's account. The Folklore collects balances by charging the payment method used to pay the deposit and makes these charges based on the payment terms the Brand sets and order milestones.
2.4 Payment of Funds
a. Funds from order payments are deposited into the Brand’s bank account that was added on the platform during the onboarding process. If the bank account needs to be changed, brands must make this change by visiting the payment settings section on thefolklore.com at least 48 hours before an anticipated invoice is paid to ensure money is sent to the right account. Any fees resulting from a late change in banking details or entering incorrect banking information will be charged to the brand and deducted from the payout amount.
b. Brands can only receive payment to a valid bank account that it personally manages and is authorized to use. There are no other ways to receive payment.
c. Once payment is made by a Retailer, the Brand will receive payment in its bank account within 2-7 business days depending on the banking institution and country the bank is located in. All orders must be fulfilled within the time listed on the Order; Brands cannot not delay the fulfillment of an Order while the money is in transit to its bank account. As soon as Brands receive an email alerting them a Retailer has successfully paid, the Brand must make every effort to begin fulfilling immediately to meet the agreed upon delivery date.
d. All payments for Orders received on the Site are in United States Dollars. If the Brand’s bank account requires local currency, the original USD total will be converted into the recipient's local currency based on the conversion rate at the time of transfer determined by the Payment Services Provider.
c. For security concerns, The Folklore may hold payment to Brands to prevent fraudulent or illicit activity. This may come as a result of security issues, improper behavior reported by other users, or associating multiple Site accounts to a single withdrawal provider.
f. Payments are final and cannot be undone. We will not be able to reverse this process once it has begun.
2.5 Late Payment
a. Off Platform Order commission invoices that are unpaid by the Brand 60 days after the original invoice was sent, are subject to a compounding 2% interest fee for every month the balance goes unpaid. The Brand must pay the original invoice and whatever fees have accumulated based on invoice delinquency.
b. Retailers have 48 hours to remit payment after being alerted that the third attempt to collect payment was unsuccessful. After 48 hours have passed, the retailer will automatically be charged an additional 2% compounding interest fee for every 7 days the payment is past due. Only Brands may request to waive this fee on behalf of the Retailer. This fee will be paid out to the Brand minus any applicable commission and payment processing fees. A separate invoice will be sent to the Retailer for the compounding late fees every 7 days.
c. If payment is beyond 30 days late, an additional $100 for every 30 days it’s late will be charged in addition to the compounded 2% fee for every 7 days past the invoice due date.
2.6 Failed Payment
If the payment method the Retailer has on file fails, our payment processing system will attempt to recharge it every 3 business days. Our system will make two attempts to charge the original payment method on file or request the Retailer update the payment information. After 3 auto debiting attempts have been made, The Folklore will reach out to the Retailer directly to work on retrieving payment of the final invoice. Retailers will receive a notification of any failed auto debiting attempts.
2.7 No Payment
Although The Folklore makes every best effort to collect payment from retailers for orders, The Folklore is not responsible if a retailer does not pay the invoice and will be unable to provide any payment to brands until the retailer successfully processes payment. The brand may choose to pursue legal action directly with the retailer to collect funds, The Folklore cannot be named in any legal or collections actions in pursuit of funds collection.
3. Taxes
There are various tax obligations depending on what country or state the Brand is registered in. Brands are responsible for checking what their local tax laws are and remitting any necessary sales taxes directly. The Folklore does not collect or remit sales tax.
4. Disputes
4.1 Basics
a. If a Retailer is not satisfied with the Products, the Retailer should communicate directly with the Brand. If attempts made to resolve this matter between both parties are unsuccessful, the Brand may send an Order dispute request to brands@thefolklore.com. The Folklore will come to a resolution within 5-7 business days of when a dispute was filed.
b. The Folklore will only consider communications made on the Site only (i.e., interactions made outside of the platform are not considered).
c. Once a dispute is submitted to The Folklore, both parties agree to resolve the dispute according to the resolution delivered from The Folklore. All resolutions are final and cannot be reversed. Any refunds, owed payments, or return of deliverables must be settled within 48 hours of The Folklore issuing the resolution.
d. The Folklore, through its Payment Services Provider, reserves the right to cancel orders or place funds on hold for any suspected fraudulent transactions made on the Site.
4.2 Chargebacks
a. It’s a violation of these Payment Terms if a user files a transaction dispute or reverses a payment through its payment provider or its bank. Doing so may get the user account temporarily or permanently disabled. Once a user has filed a dispute with their payment provider, the funds will be ineligible for a refund due to our obligations towards the payment provider.
b. The Folklore reviews cases of chargebacks and disputes for order payments on behalf of Brands. Although results vary per case due to each chargeback reason, we work hard on resolving disputes in the Brand’s favor. If the chargeback case allows, The Folklore’s Payment Services Provider will return parts or full revenue back to the Brand, otherwise the chargeback amount will be borne by the Brand. The Brand must be prepared to return any funds if the chargeback dispute does not resolve in its favor through any method of payment requested by the Retailer.
4.3 Refunds
a. All Orders are non-refundable once submitted, except in cases of damaged, mismatched description, or poor quality goods, which could be eligible for a full or partial refund. If a Brand cancels an Order for any reason without fulfilling it, the Brand must refund 100% of any funds already collected to the Retailer. If the cancellation occurs after 10 days, The Folklore commission fee will not be returned. In the event that a refund is due, The Folklore must collect funds from the Brand first in order to refund the Retailer. This refund policy does not apply to Off Platform Orders placed by Premium Retail Partners. These partners have their own refund policy that Brands should inquire about directly with the Premium Retail Partner.
b. If a product or order is eligible for a refund, the Retailer must first message the Brand to send a detailed description of the issue, attach any proof, and discuss terms of the refund. Once the Brand agrees to a refund amount, Brands need to email brands@thefolklore.com to share the details of the refund.
c. Requests to repay any funds received will be emailed to the Brand. The Brand has 48 hours to repay the funds using the return payment method listed in the fund repayment request email. The Folklore reserves the right to deduct payouts or charge the bank account or any payment method we have on file associated with a Brand’s accounts related to items that are reported as damaged or missing. Brands have the right to dispute the charge with The Folklore, but we reserve the right to reject any dispute/claim created by you about the charge in our sole discretion.
d. If refund is due, it will be processed within 7-14 business days of the funds being collected from the Brand. Funds will be returned to the original payment method that was used to pay for the Order.
e. Although The Folklore makes every best effort to get Brands to follow the refund policy and return funds based on that policy, The Folklore is not responsible if a Brand does not provide a required refund and will be unable to provide any payment until the Brand sends a refund payment. The Retailer may choose to pursue legal action directly with the Brand to collect funds; The Folklore cannot be named in any legal or collections actions in pursuit of funds collection.
f. Brand will indemnify and hold the Folklore harmless against any claims asserted against The Folklore and any damages, losses or expenses The Folklore incurs by reason of any refund to the Retailer.
5. Modifications
a. The Folklore may make changes to these Payment Terms from time to time. When these changes are made, The Folklore will make a new copy of the terms available on this page.
b. You understand and agree that if you use the Site after the date on which the Payment Terms have changed, The Folklore will treat your use as acceptance of the updated Payment Terms.
6. Disclaimers of Warranties
YOUR USE OF THE SITE, ITS CONTENT AND ANY SERVICES OR ITEMS OBTAINED THROUGH THE WEBSITE IS AT YOUR OWN RISK. THE SITE, ITS CONTENT AND ANY SERVICES OR ITEMS OBTAINED THROUGH THE WEBSITE ARE PROVIDED ON AN "AS IS" AND "AS AVAILABLE" BASIS, WITHOUT ANY WARRANTIES OF ANY KIND, EITHER EXPRESS OR IMPLIED. NEITHER THE FOLKLORE NOR ANY PERSON ASSOCIATED WITH THE FOLKLORE MAKES ANY WARRANTY OR REPRESENTATION WITH RESPECT TO THE COMPLETENESS, SECURITY, RELIABILITY, QUALITY, ACCURACY OR AVAILABILITY OF THE SITE.
THE FOREGOING DOES NOT AFFECT ANY WARRANTIES WHICH CANNOT BE EXCLUDED OR LIMITED UNDER APPLICABLE LAW.
7. Limitation on Liability
IN NO EVENT WILL THE FOLKLORE, ITS AFFILIATES OR THEIR LICENSORS, EMPLOYEES, AGENTS, OFFICERS OR DIRECTORS BE LIABLE FOR DAMAGES OF ANY KIND, UNDER ANY LEGAL THEORY, ARISING OUT OF OR IN CONNECTION WITH YOUR USE, OR INABILITY TO USE, THE SITE, ANY WEBSITES LINKED TO IT, ANY CONTENT ON THE WEBSITE OR SUCH OTHER WEBSITES OR ANY SERVICES OR ITEMS OBTAINED THROUGH THE SITE OR SUCH OTHER WEBSITES, INCLUDING ANY DIRECT, INDIRECT, SPECIAL, INCIDENTAL, CONSEQUENTIAL OR PUNITIVE DAMAGES, INCLUDING BUT NOT LIMITED TO, PERSONAL INJURY, PAIN AND SUFFERING, EMOTIONAL DISTRESS, LOSS OF REVENUE, LOSS OF PROFITS, LOSS OF BUSINESS OR ANTICIPATED SAVINGS, LOSS OF USE, LOSS OF GOODWILL, LOSS OF DATA, AND WHETHER CAUSED BY TORT (INCLUDING NEGLIGENCE), BREACH OF CONTRACT OR OTHERWISE, EVEN IF FORESEEABLE.
IN ACCEPTING LIABILITY AS THE LIMITED AUTHORIZED PAYMENT COLLECTION AGENT OF BRAND, THE FOLKLORE AND ITS AFFILIATES ASSUME NO LIABILITY FOR ANY ACTS OR OMISSIONS OF ANY RETAILER.
THE FOREGOING DOES NOT AFFECT ANY LIABILITY WHICH CANNOT BE EXCLUDED OR LIMITED UNDER APPLICABLE LAW.
The term “Affiliate” referred to herein, is an entity that, directly or indirectly, controls, or is under the control of, or is under common control with The Folklore, where control means having more than fifty percent (50%) voting stock or other ownership interest or the majority of voting rights of such entity.