Payments & Wallet Terms

These Payments & Wallet Terms form part of the Terms of Service and govern all payment-related activities on the LETO Class platform. By using the Platform's payment features, you agree to these terms.

1. PAYMENT MODEL OVERVIEW

1.1 Wallet-Only Model

LETO Class operates a wallet-only payment model. This means:

(a) Students must first add funds to their Wallet before booking lessons;

(b) Direct card payments for individual lessons are not available;

(c) All lesson payments are processed through the Wallet and Escrow system;

(d) Refunds are credited to the Wallet, not to your original payment method.

1.2 Currency

All transactions on the Platform are processed in Euros (EUR). If your payment method uses a different currency, your bank or card issuer may apply currency conversion fees.

1.3 Payment Processor

Payment processing services are provided by Stripe. By using the Platform, you agree to be bound by Stripe's terms of service and privacy policy. To the maximum extent permitted by applicable law, the Company is not responsible for any issues arising from Stripe's services, though this does not affect any statutory rights you may have.

2. WALLET

2.1 Adding Funds (Top-Up)

You can add funds to your Wallet using accepted payment methods (credit/debit cards) through our secure Stripe Checkout. When you top up:

(a) Funds are added to your Stripe Customer Balance;

(b) The balance is immediately available for booking lessons;

(c) Top-up amounts are subject to minimum and maximum limits as displayed during checkout;

(d) We do not store your full card details --- this is handled securely by Stripe.

2.2 Wallet Balance

Your Wallet balance represents funds you have deposited that are available for use on the Platform. The balance displayed in your account is your current available balance, excluding any amounts held in Escrow for pending bookings.

Important: Your Wallet is not a bank account. Funds held in your Wallet do not earn interest and are not covered by any deposit insurance or financial compensation scheme. The Wallet is provided solely for the purpose of facilitating transactions on the Platform.

2.3 Wallet Withdrawals (Cash Out)

If you wish to withdraw funds from your Wallet back to your original payment method:

(a) Submit a withdrawal request to our support team at support@letoclass.com;

(b) Minimum withdrawal amount: €50;

(c) Withdrawal requests are processed within 2-7 business days;

(d) Withdrawals can only be processed to the original payment method used for top-up; we do not support withdrawals to third-party accounts;

(e) We may require additional identity verification for larger withdrawals, as required by Stripe or applicable law, or at our discretion for fraud prevention purposes;

(f) Withdrawals may be delayed or refused if there are pending disputes, suspected fraud, or chargeback claims associated with your account;

(g) Refunds to original payment method are subject to your bank's processing times.

We encourage you to use your Wallet balance for lessons rather than withdrawing, as this provides the best experience on the Platform.

3. ESCROW SYSTEM

3.1 How Escrow Works

When a Student books a lesson:

1. The lesson amount is reserved from the Student's Wallet into Escrow;

2. The Tutor receives notification of the booking;

3. Once the Tutor accepts, the booking is confirmed and funds remain in Escrow;

4. Funds remain in Escrow until the lesson is completed;

5. After lesson completion, a 48-hour cooldown period begins;

6. After the cooldown period, funds are released to the Tutor (minus Platform fees).

3.2 48-Hour Cooldown Period

The 48-hour cooldown period after lesson completion serves to:

(a) Allow time for Students to raise any issues with the lesson;

(b) Enable the Platform to review any disputes before funds are released;

(c) Protect against fraudulent activity.

During the cooldown period, funds remain in Escrow and are not available to the Tutor.

3.3 Escrow Protection

The Escrow system protects both Students and Tutors:

(a) Students: Your funds are only released to the Tutor after the lesson is completed and the cooldown period has passed;

(b) Tutors: Confirmed bookings are backed by reserved funds --- you are protected from non-payment.

4. PLATFORM FEE

4.1 Fee Structure

A Platform fee is charged on each completed lesson to cover the costs of operating the marketplace, payment processing, and support services.

Platform Fee: 10% of the lesson price, or €3, whichever is greater.

For example:

(a) A €20 lesson: 10% = €2, but minimum €3 applies → Platform fee = €3;

(b) A €50 lesson: 10% = €5, which exceeds €3 → Platform fee = €5;

(c) A €100 lesson: 10% = €10 → Platform fee = €10.

4.2 Fee Deduction

The Platform fee is deducted from the lesson amount before funds are released to the Tutor. Students pay the full lesson price; Tutors receive the lesson price minus the Platform fee.

Cancellation refund amounts are determined by the cancellation tier as set out in the Dispute & Refund Policy.

4.3 Fee Display

The Platform fee applicable to each booking is included in the booking price Student sees. Tutors can see their expected earnings (after fees) in their dashboard.

4.4 Fee Changes

We may change the Platform fee structure with 30 days' notice. Any changes will apply only to bookings made after the effective date of the change. Bookings confirmed before the change will be processed at the fee rate in effect at the time of booking.

5. TUTOR PAYOUTS

5.1 Stripe Connect Requirement

To receive payouts, Tutors must complete Stripe Connect onboarding, which includes:

(a) Identity verification (government-issued ID);

(b) Address verification;

(c) Bank account details for receiving payouts;

(d) Tax information as required by applicable law.

You cannot receive payouts until Stripe Connect verification is complete. We will send reminders if your verification is pending.

5.2 Payout Schedule

Payouts are typically processed according to the following schedule:

(a) Standard payouts: Typically weekly (funds accumulated during the week are usually paid out on the following week);

(b) Instant payouts: May be available for an additional fee (as displayed in your dashboard), subject to Stripe availability and eligibility.

Payout timing may vary based on your bank's processing times, your country of residence, and Stripe's operational requirements.

5.3 Minimum Payout Threshold

Minimum payout amount: €50

Payouts are only processed when your available earnings reach the minimum threshold. Earnings below this threshold will accumulate until the minimum is reached.

If you close your account with earnings below the minimum threshold, please contact support to arrange a final payout (standard payout fees may apply).

5.4 Payout Fees

The following fees may be deducted from your payouts:

(a) Standard payout: No additional fee (Stripe transfer fees are covered by the Platform);

(b) Instant payout: Fee as displayed in your dashboard at the time of request;

(c) Tax reporting fee: As described in Section 6.2 (currently €2 per month in months when you receive earnings).

6. TAX COMPLIANCE

6.1 Independent Contractor Status

Tutors operate as independent contractors, not employees of the Company. You are solely responsible for:

(a) Reporting income earned through the Platform to relevant tax authorities;

(b) Paying all applicable taxes, including income tax and VAT/sales tax where applicable;

(c) Maintaining appropriate records of your earnings;

(d) Seeking professional tax advice if needed.

The Company does not withhold taxes from your payouts and does not provide tax advice.

6.2 Tax Reporting (DAC7)

Under EU regulations (DAC7), platforms are required to report certain information about sellers to tax authorities. We comply with these requirements through Stripe Tax or other compliant reporting tools.

A tax reporting fee (currently €2 per month) will be deducted from your payout in any month in which you receive earnings. The current fee amount is displayed in your dashboard. We may adjust this fee from time to time to reflect changes in our costs; any changes will be communicated in advance.

If you do not receive any payouts in a given month, no fee is charged.

6.3 Tax Documents

Tax documents and earnings summaries are available through your Stripe Dashboard. The Company may also provide annual earnings summaries upon request.

7. REFUNDS

7.1 Refund Destination

All refunds are credited to your Wallet balance, not to your original payment method. This allows you to use the refunded amount for future bookings immediately.

Refund amounts for cancellations depend on when the cancellation is made. See the Dispute & Refund Policy for the applicable cancellation tiers.

If you wish to withdraw refunded funds from your Wallet, you may request a withdrawal as described in Section 2.3.

7.2 Refund Processing

Refunds resulting from cancellations are processed automatically according to the Dispute & Refund Policy. Refunds resulting from disputes are processed after the dispute is resolved.

7.3 Refund Timing

Automatic refunds (from cancellations) are typically credited to your Wallet within minutes. Refunds from dispute resolutions may take up to 5 business days after the decision is made.

8. CHARGEBACKS AND FRAUD

8.1 Chargebacks

A chargeback occurs when you dispute a charge with your bank or card issuer. If you have a concern about a transaction, we encourage you to contact us first at support@letoclass.com before initiating a chargeback.

Initiating a chargeback without first attempting to resolve the issue through our support may result in:

(a) Suspension of your account pending investigation;

(b) Restriction of account features and withdrawal capabilities;

(c) Funds being held until the dispute is resolved;

(d) Recovery of reasonable costs incurred by the Platform as a result of the chargeback, where permitted by applicable law;

(e) Permanent account termination for repeated or fraudulent chargebacks.

8.2 Fraud Prevention

We employ various measures to detect and prevent fraudulent activity. If we suspect fraud on your account, we may:

(a) Temporarily freeze your Wallet and any pending payouts;

(b) Request additional verification documents;

(c) Delay or refuse withdrawals or payouts;

(d) Suspend or terminate your account;

(e) Report suspected fraud to relevant authorities.

8.3 Disputed Funds

If funds are subject to a dispute, chargeback, or fraud investigation, they may be held and unavailable for withdrawal or payout until the matter is resolved. We will notify you of any such holds and work to resolve them as quickly as possible.

9. ACCOUNT CLOSURE

9.1 Wallet Balance on Closure

If you close your account with a remaining Wallet balance:

(a) Contact support to request a withdrawal of your remaining balance;

(b) Withdrawals are subject to verification and the minimum withdrawal amount (€50) may be waived for account closures;

(c) Any pending disputes must be resolved before final withdrawal.

9.2 Tutor Earnings on Closure

If you close your Tutor account:

(a) Earnings above the minimum payout threshold (€50) will be paid out according to the normal schedule;

(b) Earnings below the threshold will be paid out minus any applicable fees, or may require you to contact support;

(c) The 48-hour cooldown period still applies to recent lessons.

10. CHANGES TO THESE TERMS

We may update these Payments & Wallet Terms from time to time. Material changes will be communicated at least 30 days before taking effect. Your continued use of the Platform's payment features after changes take effect constitutes acceptance of the updated terms.

Changes to fee structures will only apply to bookings made after the effective date --- existing bookings will be processed at the rates in effect when they were confirmed.

11. CONTACT

For questions about payments, Wallet, or these terms, please contact us:

Email: support@letoclass.com

For urgent payment issues (such as unauthorized transactions), please include "URGENT" in your email subject line.

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