July 12, 2023 – We are excited that registered SoundExchange creators can now opt to receive performance royalties via PayPal and Venmo! Read the full press release here.
SoundExchange is one of the only organizations of its kind to offer this type of option to creators. We believe that digital payment options make the business of music easier and more efficient, which is what we work towards every day at SoundExchange
If you are interested in updating your payment method, please access SoundExchange Direct to review your options and request the appropriate updates to your account. Read below for details on our new payment options.
Available Now
The option of collecting digital performance royalties from SoundExchange is now available using PayPal and Venmo, which provide a viable alternative for those seeking nontraditional payment methods.
- PayPal is an online and app-based payment platform that enables users to send and receive money directly online or on their U.S. mobile phone number, without requiring a bank account.
- Venmo is an app-based payment platform that enables users to send and receive money without requiring a bank account. It enables SoundExchange to send royalties to the intended recipient via a U.S. mobile phone number.
Additional information about PayPal and Venmo and eligibility for each is available below.
PayPal
How does it work?
PayPal is an online and app-based payment platform that enables users to send and receive money without requiring a bank account. It enables SoundExchange to send royalties to the intended recipient’s email address or U.S. mobile phone number rather than a traditional bank account and routing numbers.
PayPal also functions as a prominent payment processor. This means users will be able to immediately use their SoundExchange royalties for online purchases.
Who is eligible?
Payment via PayPal is an option for domestic and international registrants, whether they are paid as individuals or companies. SoundExchange will issue a payment to an account set up for direct deposits on a monthly basis if at least $100 is available in new earnings. The PayPal account must be in the same name as the SoundExchange account for which it is receiving payment.
PayPal will not accept direct deposits over $60,000. If an account is set up for payments via PayPal and accrues to over $60,000 for a distribution, SoundExchange will simply roll the recipient’s royalties until they can be paid out via paper check at the end of the quarter. The account will then revert to PayPal payments – unless new royalties also exceed the threshold.
We will only remove the PayPal payment delivery details from an account if a creator requests it or if a payment issued with it fails. As such, an account may display being set up for PayPal payments but only generate quarterly paper checks while carrying a balance over $60,000. Accounts regularly receiving payments over $100,000 per month should consider alternate SoundExchange payment options, such as direct deposit (ACH).
What else do I need to know?
Your PayPal account must be in the same name as your SoundExchange account. SoundExchange does not allow payments due to one person or company to be issued to another person or company.
PayPal will not accept direct deposits to accounts in restricted countries. Although you will be able to update your account with SoundExchange, we can only issue payments to countries in which PayPal operates and currently accepts payments.
PayPal is required to report some income to the IRS and may issue standalone 1099-K forms to applicable payees. If you have any questions related to tax reporting, please consult a tax accounting professional.
Please remember to review whether your PayPal account is tied to your U.S. mobile phone number or email address before submitting it to SoundExchange. If both are provided, we will default to the PayPal-enrolled phone number.
Venmo
How does it work?
Venmo is an app-based payment platform that can send and receive money using only a recipient’s U.S. mobile phone number. The transfer is nearly instantaneous, which will allow registered users to receive their royalties as soon as possible!
Who is eligible?
SoundExchange is offering payments via Venmo as an option only to U.S. individuals and companies. To be eligible, a SoundExchange account must be registered as a U.S. entity for tax purposes. SoundExchange offers non-U.S. entities other payment options, including international and domestic direct deposit (ACH), PayPal, and paper checks in USD.
SoundExchange will pay out royalties via Venmo of up to $50,000 in a single distribution. If a creator’s account is set up for payments via Venmo and accrues over the max amount for a distribution, SoundExchange will simply roll royalties until they can be paid out via paper check at the end of the next quarterly distribution. The account will then revert to Venmo payments unless new royalties also exceed the threshold. Accounts regularly receiving payments over $50,000 per month should consider alternate SoundExchange payment options, such as direct deposits via ACH.
SoundExchange will not remove the Venmo payment delivery details from the account unless payment fails due to incorrect information or because a creator requests for the information to be removed.
What else do I need to know?
Your Venmo account must be in the same name as your SoundExchange account. SoundExchange does not allow payments due to one person or company to be issued to another.
The SoundExchange Venmo feed is set to private. We reserve the right to change it without notice. Please make sure your Venmo feed settings are current before registering for Venmo payments.
Venmo is required to report some income to the IRS and may issue standalone 1099-K forms to applicable payees. If you have any questions related to tax reporting, please consult a tax accounting professional.
How to Opt-In to PayPal or Venmo
Interested in requesting that a SoundExchange account receive payments via PayPal or Venmo? If so, you can submit your payment information directly online via SX Direct. Our Customer Services team may reach out to the primary contact on file to confirm the information before honoring the update.
How SoundExchange Payments Work
Royalties are distributed by direct deposit and mobile payment apps every month and by check in March, June, September, and December.
Direct deposits are issued monthly for accounts with a balance of $100 or more and quarterly for accounts with a balance of $10 or more. This includes payments made via domestic and international ACH, as well as PayPal and Venmo.
Quarterly checks are issued when the royalties payable to a registered creator reach $100 or more. If royalties due are less than $100, SoundExchange holds them until they reach the threshold, at which time we will issue a payment.
Contact Us
If you have any questions about our payment options, please contact SoundExchange Customer Service. Our support team can also be reached at (800) 961-2091 (U.S.) or 202-803-8231 (International) from Monday to Friday, from 9 a.m. to 6 p.m. ET. We are always happy to be of service.