This Vendor Payout & Settlement Policy ("Policy") governs the calculation, processing, timing, and settlement of payouts payable to Vendors for Orders placed by Users through the Localhearts Platform ("Platform"). By registering and continuing as a Vendor on the Platform, you acknowledge and agree to be bound by this Policy, the Vendor Terms and Conditions, and all applicable laws.
Last updated: 28 July 2026
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Purpose and Scope
This Policy governs the calculation, processing, timing, and settlement of payouts payable to Vendors for Orders placed by Users through the Platform. By registering and continuing as a Vendor on the Platform, you acknowledge and agree to be bound by this Policy, the Vendor Terms and Conditions, and all applicable laws.
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Payout Cycle
| Order Completion Period | Payout Generation | Payout Transfer |
|---|---|---|
| Orders completed (delivered or pickup confirmed) between Monday 00:00 hours and Sunday 23:59 hours | Following Monday (T+1) | Within 7–14 business days from payout generation |
Explanation
- "T" refers to the date on which the Order is marked as completed, including delivery confirmation or pickup confirmation.
- Payouts for completed Orders shall generally be generated on the next business day following the completion of the weekly payout cycle.
- Funds shall ordinarily be transferred to the Vendor's registered bank account within 7-14 business days from payout generation, excluding weekends, bank holidays, or delays attributable to banks or payment service providers.
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Payout Calculation
Payout Amount = Order Value − Other Fees − Refunds/Adjustments − Taxes
Where:
- Order Value — Total amount paid by the User (including product price, delivery charges if any, and taxes collected from the User).
- Other Fees — Any listing, advertising, or technology fees.
- Refunds/Adjustments — Amounts refunded to Users for cancelled, returned, or disputed Orders.
- Taxes — GST or other statutory deductions required by law (e.g., TDS if applicable).
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Bank Account Requirements
4.1The Vendor shall provide accurate and valid bank account details, including the account holder's name, bank name, account number, and IFSC code. Such details must correspond with the Vendor's registered business entity or proprietor name.
4.2Localhearts may engage third-party payment processors or payout partners, including Cashfree Payments / Razorpay or any other designated payment partner, for processing Vendor settlements. The Vendor consents to the sharing of necessary banking and KYC information with such payment partners for payout processing and compliance purposes.
4.3Localhearts shall not be liable for any delay, failure, or incorrect transfer arising from inaccurate or incomplete bank details provided by the Vendor.
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Minimum Payout Threshold
5.1The minimum payout threshold shall be ₹500 or such other amount as may be communicated through the Vendor dashboard or Platform notifications.
5.2If the accrued payout amount does not meet the minimum threshold, such amount shall be carried forward to the subsequent payout cycle until the threshold amount is reached.
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Failed Payouts and Corrections
6.1In the event a payout fails due to incorrect banking information, technical failure, bank rejection, compliance issues, or any other reason, Localhearts may notify the Vendor to update or verify the required details.
6.2Failed payouts may be reprocessed in the next payout cycle after successful verification of updated details. Localhearts reserves the right to temporarily hold payouts pending verification or investigation.
6.3Any overpayment, duplicate payment, short payment, accounting discrepancy, or settlement error identified after payout processing may be adjusted, recovered, or corrected in subsequent payout cycles.
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Refunds and Reversals
7.1If a refund, reversal, return adjustment, or compensation is issued to a User after the payout has already been transferred to the Vendor, Localhearts shall be entitled to deduct the corresponding amount from the Vendor's future payouts.
7.2Where future payouts are insufficient to recover such amounts, Localhearts may separately invoice the Vendor or recover the amount through any lawful means available.
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Chargebacks and Fraud
8.1In the event of a payment chargeback, transaction dispute, or reversal initiated by a bank, card network, UPI service provider, or financial institution, the corresponding amount may be reversed or withheld from the Vendor's payout account. The Vendor may be required to provide supporting documentation to contest such a chargeback.
8.2If Localhearts reasonably determines that a Vendor has engaged in fraudulent, suspicious, abusive, or unlawful conduct, including but not limited to fake Orders, self-purchases, payment abuse, manipulation of transactions, or misuse of the Platform for financial gain, Localhearts reserves the right to take the actions listed below.
Localhearts reserves the right to:
- permanently withhold pending payouts;
- suspend or terminate the Vendor account;
- recover losses and damages;
- initiate legal proceedings; and/or
- report the matter to the relevant law enforcement or regulatory authorities.
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Taxes and Invoices
9.1Localhearts may issue monthly settlement statements, invoices, or tax invoices (where applicable) reflecting monthly subscription fees, deductions, and taxes charged to the Vendor. The Vendor shall remain solely responsible for payment of all applicable taxes arising from its business activities and earnings.
9.2Where required under applicable law, Localhearts may deduct tax at source ("TDS") or other statutory deductions and shall provide the Vendor with relevant certificates or records in accordance with applicable law.
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Settlement Disputes
10.1Any dispute, discrepancy, or claim relating to payouts or settlements must be raised by the Vendor within 15 (fifteen) days from the date of the relevant payout transaction. Upon expiry of such period, the payout shall be deemed final, accepted, and accurate.
10.2Settlement-related disputes may be submitted along with all relevant Order IDs, transaction references, and supporting documentation necessary for investigation.
Settlement Disputes Contact
Email: payout@localhearts.in
Email: payout@localhearts.in
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Modification of Policy
11.1Localhearts reserves the right to amend, modify, update, or replace this Policy at any time upon reasonable prior notice, including through the Vendor dashboard, Platform notifications, or email communication.
11.2Continued access to or use of the Platform after the effective date of such modifications shall constitute acceptance of the revised Policy.