This TikTok Shop UK Account Finance Policy (hereafter referred to as "this Policy")outlines TikTok Shop's policy in relation to the Payment Settlement Period, Chargebacks and Negative Account Balances for TikTok Shop Sellers in the UK.
This Policy applies to Sellers.
All references to TikTok Shop in this Policy are a reference to TikTok Shop UK.
This Policy applies to all TikTok Shop orders, transactions, products, and shipments of Sellers in the UK.
Sellers may wish to seek independent legal advice if they have questions about the laws and regulations concerning their practices.
Our TikTok Shop UK Policies are updated periodically. We will generally notify you in advance of any changes to this Policy. Please see the TikTok Shop UK Seller Terms of Service for details of how we may make changes to our terms and policies. Sellers are responsible for checking this page regularly to ensure they comply with our Policy.
TikTok Shop reserves the right to take enforcement action as set out in the TikTok Shop UK Seller Performance Evaluation Policy and TikTok Shop UK Seller Terms of Service against Sellers who breach this Policy. Sellers have the right to appeal in accordance with the TikTok Shop UK Seller Performance Evaluation Policy and the TikTok Shop UK Seller Terms of Service. TikTok Shop will then investigate the case and take corrective action where applicable.
2. Definitions
Defined terms in this Policy have the following meanings:
Chargeback refers to the situation in which a TikTok Shop customer disputes a TikTok Shop transaction, and the customer requests a return of the sum charged to them under the disputed transaction.
Negative Account Balance refers to when a Seller's account balance has a value below zero. This may occur when the Seller's platform expenses (such as platform commissions) exceed their platform revenues.
Payment Settlement Period refers to the amount of time between the day an order is delivered to the TikTok Shop customer and the day the funds are released to the Seller for that completed order.
Seller refers to a third-party trader on TikTok Shop.
Unauthorised Payment refers to when a charge is made on a customer's payment method, but the customer did not authorise the charge by any means.
3. Payment Settlement Period
There are 5 types of Payment Settlement Periods available that TikTok Shop may apply:
Introductory Settlement Period: Applies to newly onboarded sellers or sellers in the probation period. Funds are released 31 days from the delivery date.
Standard Settlement Period: The default settlement period that automatically applies to sellers out of probation who do not qualify for faster settlement tiers. Funds are released 8 days from the delivery date.
Accelerated Settlement Period: Offers a faster settlement period than the Standard Settlement Period, with eligibility determined by shop performance. Funds are released 3 days from the delivery date.
Express Settlement Period: The fastest settlement period available on TikTok Shop, assigned based on shop performance. Funds are released 1 day from the delivery date.
Deferred Settlement Period: Applies when TikTok Shop is conducting platform and/or seller security checks, which may extend the settlement period. Funds are released 31 days from the delivery date.
More information on the eligibility criteria for the different periods can be found here.
4. Chargebacks
4.1 Chargeback Process
TikTok Shop will notify a Seller when a Chargeback request has been raised by a customer in relation to a transaction involving the Seller. TikTok Shop will indicate if the Seller needs to provide information that could help to resolve the Chargeback. The Seller must provide the required information within the period specified in TikTok Shop's notification.
A Seller will be liable for any Chargeback amount, associated fees and compensation for damages that any customer may claim in accordance with applicable law if the Chargeback is caused by a reason for which the Seller is responsible.
TikTok Shop will only cover the Chargeback when the customer's payment provider advises that the customer's Chargeback amount was an Unauthorised Payment, in which case TikTok Shop will cover the Chargeback amount and any associated fees.
If an Unauthorised Payment was caused by suspicious activity on a Seller's part, that Seller is liable for the Chargeback amount and associated fees.
4.2 Appeal of Chargeback Claims
To appeal a Chargeback, the Seller must respond in the Seller Center within the timeline specified in the Chargeback notification sent to them.
The Seller must submit the following information and supporting documents to TikTok Shop to support the appeal:
The status of the relevant transaction;
A description of the relevant product(s); and
Proof that the relevant product(s) was/were received by the customer.
Failing to submit the above-mentioned documents will result in the Seller's appeal being rejected, and the Seller will be liable for the Chargeback.
The Seller may also submit the following optional information and supporting documents:
The relevant order confirmation email;
Details of any changes to, refunds or cancellations of the order;
Order tracking information;
Images of the product(s) that demonstrate it was sent; or
Customer message records.
All information and documents submitted by the Seller to TikTok Shop in support of an appeal must be accurate and complete.
Any documents submitted as part of an appeal against a Chargeback may be forwarded to the customer's payment provider and/or any other third party, if necessary.
Once the Seller has submitted their appeal, TikTok Shop will review the documents submitted by the Seller and compile this into a case submission. TikTok Shop will submit the case to the customer's payment provider on the Seller's behalf. Appealing a Chargeback requires TikTok Shop to make the above representation to the payment provider.
The fee for TikTok Shop carrying out this service is £10 per Chargeback. TikTok Shop has no control over the decision by the customer's payment provider. Accordingly, this service fee will be applied by TikTok Shop regardless of the final decision by the customer's payment provider regarding the appeal. This fee will be deducted from any monies due to the Seller from orders placed on TikTok Shop.
A Chargeback appeal can take up to 3 months to process from the date the Chargeback request is raised by the customer with their payment provider.
TikTok Shop will inform the Seller of the appeal's outcome in the Seller Center.
4.3. Appeal of Chargebacks Claims by TikTok Shop
Sellers are strongly encouraged to respond to Chargeback notifications within the timeline specified in such notifications to ensure that the relevant supporting information can be submitted to the customer's payment provider for review.
If permitted by the customer's payment provider, TikTok may appeal the Chargeback by submitting platform-held evidence to the customer's payment provider. This may occur when the Seller fails to respond to the Chargeback notification within the applicable timeline and TikTok Shop identifies reasons to do so (such as the delivery confirmation of the product(s)).
This action is intended to preserve the Seller’s right to appeal the Chargeback and maintain platform integrity. TikTok Shop shall not be held responsible for the accuracy or completeness of the platform-held evidence submitted to appeal such Chargeback or the appeal's outcome.
If TikTok Shop appeals a Chargebackunder these circumstances:
Sellers will not be charged aservice fee of £10 as explained under section 4.2 of this policy.
The outcome of the appeal remains solely determined by the customer's payment provider.
TikTok Shop will notify the Seller.
TikTok Shop reserves the right to modify or discontinue the appeal of Chargebacks under this section at its discretion, based on risk assessments, our terms and policies, or compliance considerations.
5. Negative Account Balance
Sellers must ensure their account does not have a Negative Account Balance.
TikTok Shop periodically reviews Seller accounts and will issue reminders to Sellers with a Negative Account Balance to add funds to their accounts.
TikTok Shop may take enforcement action against a Seller with a Negative Account Balance.
6. Privacy
For more information about how TikTok Shop processes and shares your information, including for the purposes of enforcing this Policy, please see the TikTok Partner Privacy Policy.
