Payment Policy
Last Updated: April 6, 2026 - Version 1.0
1. Introduction & Scope
This Payment Policy (“Policy”) governs all financial transactions facilitated through the Subvert platform at subvert.fm, including sales of digital releases and merchandise, Optional Contributions, and Rights Reserve administration.
This Policy is incorporated by reference into the Subvert Terms of Use and should be read alongside the Terms of Use, available at subvert.fm/terms.
This Policy applies to all users of the Service including Artist Members, Label Members, Supporter Members, non-member account holders, and guest purchasers completing a transaction without a registered account. For Cooperative members, this Policy is additionally subject to the Form of Member Agreement and the Subvert Cooperative Bylaws.
The rates, thresholds, and mechanics described in this Policy are set by the Board of Directors of Subvert Cooperative LCA and may be updated from time to time in accordance with Section 10. In the event of any conflict between this Policy and the Terms of Use, the Terms of Use shall control.
2. Platform Fee
Subvert charges a platform fee of 0% on all sales. Artists and labels keep 100% of their sale proceeds after payment processing fees charged by Stripe. Subvert does not take a revenue share from artist or label sales.
This is not a temporary promotional rate. The 0% platform fee is a founding principle of Subvert as a cooperative platform. Any change to the platform fee would require amendment of this Policy in accordance with Section 10 and approval by the Co-op Board.
Payment processing fees charged by Stripe are separate from the platform fee and are deducted from each transaction by Stripe before proceeds reach the seller. The current Stripe fee schedule is available at stripe.com/pricing. Subvert does not mark up or add to Stripe’s fees.
3. Pricing
3.1 Artist-Set Pricing
Artists and labels set their own prices for releases on the Service. Where a release is not offered as a free download, the minimum price is $1.00 USD. There is no maximum price requirement. Prices may be updated at any time through the artist or label dashboard.
3.2 Pay More Pricing
Artists and labels may enable “Pay More Pricing” on any release, allowing purchasers to pay above the listed price at their discretion. When Pay More Pricing is enabled, the listed price functions as a minimum. Any amount paid above the minimum is treated as part of the purchase price for that release and is subject to the same payment processing fees and Rights Reserve deduction as the base price.
3.3 Free Downloads
Artists and labels may offer releases as free downloads. Free downloads do not generate a Rights Reserve deduction. Payment processing fees do not apply to free transactions. Optional Contributions may still be offered at checkout alongside a free download.
3.4 Currency
All transactions on the Service are currently processed in US dollars (USD). Currency conversion where applicable is handled by Stripe and may be subject to fees charged by Stripe or the purchaser’s financial institution. Subvert is not responsible for currency conversion rates or fees. Additional currencies may be supported in future at Subvert’s discretion.
3.5 Price Changes
Price changes made by an artist or label apply to new purchases only and do not affect completed transactions.
4. Payment Processing
4.1 Payment Processor
All payments through the Service are processed by Stripe, Inc. By making or receiving a payment through the Service, you agree to be bound by Stripe’s terms of service, available at stripe.com/legal. Subvert is not responsible for errors, failures, or interruptions in payment processing caused by Stripe.
4.2 Payment Methods
At launch, the Service accepts payment by credit and debit card through Stripe. Additional payment methods may be supported in future at Subvert’s discretion.
4.3 Stripe Fee Calculation
Stripe charges a payment processing fee on each transaction. Where a single checkout includes purchases from one or more artists or labels and an Optional Contribution to the Cooperative, Stripe’s fee is calculated on the total checkout amount and allocated proportionally across all line items — including both sale proceeds and the Optional Contribution. The Cooperative bears its proportional share of the Stripe fee on any Optional Contribution received. The current Stripe fee schedule is available at stripe.com/pricing.
4.4 Currency
All transactions are processed in USD. See Section 3.4 for details.
4.5 Failed Payments
If a payment fails for any reason, the transaction will not be completed and no files will be delivered. If you believe a payment was charged but not processed correctly, contact us at info@subvert.fm with your transaction details.
4.6 Chargebacks & Disputes
If a buyer initiates a chargeback through their bank or card issuer, Subvert will respond in accordance with Stripe’s dispute resolution procedures. Artist and label payouts may be temporarily withheld pending resolution of a chargeback. Repeated chargebacks on an account may result in account review or suspension. See the Terms of Use Section 8.6 for further details.
4.7 Taxes
Subvert collects and remits sales tax, VAT, or other applicable transaction taxes in jurisdictions where required by law. Applicable taxes are displayed at checkout and included in the total amount charged to the purchaser. Artists and labels are solely responsible for their own income tax obligations arising from sales through the Service. See Section 9 for further details.
5. Artist Payouts
5.1 How Payouts Work
Sale proceeds net of Stripe payment processing fees and any applicable Rights Reserve deduction are held in the artist’s or label’s Subvert account balance until they initiate a payout. Payouts are on demand — there is no automatic payout schedule. Artists and labels initiate payouts at any time through their dashboard.
5.2 Payout Method
Payouts are made by bank transfer via Stripe. To receive payouts, artists and labels must connect a bank account through the Stripe onboarding flow in their dashboard. Subvert does not store bank account details directly — all payout information is held securely by Stripe.
5.3 Minimum Payout Amount
There is no minimum payout threshold. Artists and labels may initiate a payout of any available balance amount.
5.4 Payout Timing
Once a payout is initiated, processing time is determined by Stripe and the artist’s or label’s bank. Typical bank transfer processing times are 2 to 5 business days. Subvert is not responsible for delays caused by Stripe or the receiving financial institution.
5.5 Payout Currency
Payouts are made in USD. Currency conversion where applicable is handled by Stripe and may be subject to fees charged by Stripe or the artist’s or label’s financial institution.
5.6 Withheld Payouts
Subvert reserves the right to withhold payouts in the following circumstances:
• A chargeback or payment dispute is pending on a transaction associated with the payout.
• Subvert has reason to believe the account has been involved in fraudulent activity, including coordinated refund fraud as described in the Terms of Use.
• The payout is subject to a legal hold or law enforcement request.
Subvert will notify the artist or label of any withheld payout and the reason for the hold where permitted by law. Withheld amounts will be released once the relevant issue is resolved.
5.7 Rights Reserve Deduction
A Rights Reserve deduction may be applied to sales facilitated through the Service before proceeds are credited to the artist’s or label’s account balance. The Rights Reserve applies to Digital Phonorecord Delivery sales and does not apply to free downloads or Optional Contributions. The Rights Reserve rate and disbursement mechanics are governed by Section 7 of this Policy. Where a Rights Reserve deduction applies, it is calculated and applied before payout — artists and labels see their net balance after any applicable deduction in their dashboard.
5.8 Uncollected Balances
Account balances that remain uncollected for an extended period may be subject to applicable state escheatment laws. Subvert will make reasonable efforts to notify artists and labels of uncollected balances before any escheatment obligation arises.
6. Optional Contributions
6.1 What They Are
Optional Contributions are voluntary payments made by purchasers to the Subvert Cooperative at checkout, separate from the purchase price of any release. Optional Contributions are not artist revenue and are not subject to the Rights Reserve deduction. They go entirely to the Cooperative to support its operational costs.
6.2 Presentation at Checkout
Optional Contributions are offered at checkout as a selection of preset amounts plus a custom amount field. They are entirely voluntary. Declining to make a contribution does not affect the purchase or access to the Service in any way.
6.3 Preset Amounts
Optional Contributions are presented as a percentage of the purchase price. The preset options are 10%, 15%, and 20% of the total purchase amount, plus a custom amount field and a no contribution option. The 15% option is pre-selected by default. Preset options and the default selection are set by the Board of Directors and may be updated from time to time.
6.4 Stripe Fee Allocation
Stripe’s payment processing fee is calculated on the total checkout amount including any Optional Contribution and allocated proportionally across all line items. The Cooperative bears its proportional share of the Stripe fee on Optional Contributions received. See Section 4.3 for details.
6.5 Non-Refundable
Optional Contributions are non-refundable under all circumstances. By making an Optional Contribution, the purchaser acknowledges that it is a voluntary payment in support of the Cooperative’s operations and that no goods or services are provided in exchange.
6.6 Tax Treatment
Optional Contributions are not tax-deductible charitable donations. Subvert Cooperative is not a registered charitable organization. Optional Contributions are voluntary payments to a cooperative and are treated accordingly for tax purposes. They are not subject to sales tax as they are not payments for goods or services.
6.7 Annual Accounting
The Board of Directors publishes an annual accounting of how Optional Contributions were received and used during the prior fiscal year. This accounting is made available to all members and the general public through the Service.
7. Rights Reserve
7.1 Purpose
Subvert withholds a portion of each Digital Phonorecord Delivery (“DPD”) sale as a Rights Reserve. The Rights Reserve exists to enable Subvert to fulfill its mechanical royalty obligations under applicable US copyright law in connection with the reproduction and distribution of musical compositions through the Service. The Rights Reserve does not apply to free downloads or Optional Contributions.
7.2 Rate
The Rights Reserve rate is 10% of the gross sale price per DPD transaction, before Stripe payment processing fees are deducted. This rate is set by the Board of Directors and may be updated from time to time in accordance with Section 10. The current rate will always be displayed clearly in the artist and label dashboard.
7.3 Rights Declarations
At upload, artists and labels are prompted to declare the following information about each release:
• Whether the work is registered with a performing rights organization (PRO) or collective management organization (CMO), and if so, which one.
• Whether the work is administered by a music publisher, and if so, the publisher’s name.
• ISRC codes for each sound recording.
• ISWC codes for the underlying musical composition, where available.
These declarations determine how Rights Reserve funds are disbursed. Artists and labels may update their declarations at any time through their dashboard. Updated declarations apply to Rights Reserve funds accumulated from the date of the update forward.
7.4 Disbursement Logic
The following disbursement states describe the intended approach to Rights Reserve administration. Implementation of automated disbursement is in development. Subvert will communicate to Artist Members and Label Members when each disbursement state becomes operational.
If no publisher declared:
Where an artist or label has not declared a music publisher — including where no declaration has been made — Rights Reserve funds for that release are intended to be released to the artist or label at or around the time of sale, net of any applicable remittance obligations. This covers artists who self-administer their publishing rights and artists who have not yet completed their rights declarations.
If publisher declared:
Where an artist or label has declared a music publisher, Rights Reserve funds for that release will be held pending remittance to the publisher or the relevant mechanical licensing organization in accordance with applicable law. Subvert will communicate remittance timelines as infrastructure is developed.
7.5 Remittance Infrastructure
The infrastructure required to remit mechanical royalties directly to the Mechanical Licensing Collective (MLC) and other collecting organizations is currently in development. Rights Reserve funds held for remittance under State B will be held securely in a designated account until the appropriate remittance infrastructure is in place. Subvert will provide regular updates on remittance timelines to Artist Members and Label Members.
7.6 Reserve Transparency
Subvert is committed to full transparency with respect to the Rights Reserve. Artists and labels will have access to their Rights Reserve balance and disbursement status through their dashboard. This feature is planned for launch and will be communicated to Artist Members and Label Members when available. Questions about Rights Reserve balances may be directed to info@subvert.fm.
7.7 Artist & Label Warranty
By uploading content and making sales through the Service, artists and labels warrant that their rights declarations are accurate and complete to the best of their knowledge. Artists and labels who provide inaccurate declarations that result in incorrect Rights Reserve disbursement may be required to reimburse Subvert for any resulting liability, including amounts Subvert is required to pay to rights holders or collecting organizations as a result of the misrepresentation.
8. Refunds & Disputes
8.1 All Sales Final
All sales of digital content are final except as described in this Section 8. Because digital files are delivered immediately upon purchase, refunds are not available for change of mind.
8.2 When Refunds Are Issued
Subvert handles all refund requests centrally at info@subvert.fm. Refunds are issued in the following circumstances:
• The purchaser has not yet downloaded any files from the purchase.
• The files contain a technical defect — corrupted audio, missing tracks, or a significant mismatch between what was described and what was delivered — that cannot be resolved by re-downloading or by the artist re-uploading corrected files within five (5) business days of Subvert contacting the artist.
• A refund is required by applicable law.
Refund requests must be submitted within 180 days of the original purchase date. Full details of the refund process are set out in the Terms of Use, Section 5.4.
8.3 Effect of Refund on Artist Payout
Where a refund is issued due to a defect in an artist’s or label’s uploaded files, Subvert reserves the right to recover the refunded amount by deducting it from the artist’s or label’s future payouts. Artists and labels will be notified of any such deduction. Optional Contributions are non-refundable under all circumstances.
8.4 Effect of Refund on Rights Reserve
Where a refund is issued on a transaction from which a Rights Reserve deduction was made, the Rights Reserve amount associated with that transaction will be returned to the artist’s or label’s account balance. The Rights Reserve is not retained by Subvert on refunded transactions.
8.5 Chargebacks
If a purchaser initiates a chargeback through their bank or card issuer, Subvert will respond in accordance with Stripe’s dispute resolution procedures. Artist and label payouts may be temporarily withheld pending chargeback resolution. Repeated chargebacks associated with an artist’s or label’s releases may result in account review. Full details are set out in the Terms of Use, Section 8.6.
8.6 Optional Contributions
Optional Contributions are non-refundable under all circumstances, including in cases where the associated purchase is refunded. The Optional Contribution and the purchase are separate transactions for refund purposes.
9. Taxes
9.1 Transaction Taxes
Subvert collects and remits sales tax, VAT, goods and services tax, or other applicable transaction taxes on purchases in jurisdictions where required by law. Applicable taxes are calculated on the purchase price and displayed at checkout before payment is completed. Tax amounts are included in the total charged to the purchaser and are not added on top of the listed price after checkout.
9.2 Optional Contributions
Optional Contributions are not subject to sales tax. They are voluntary payments to a cooperative and are not consideration for goods or services.
9.3 Artist & Label Income Tax
Artists and labels are solely responsible for their own income tax obligations arising from sales through the Service. Subvert does not withhold income tax from artist or label payouts. Artists and labels should consult a tax professional regarding their obligations in their jurisdiction.
9.4 Tax Forms
Subvert will issue IRS Form 1099-K or such other tax forms as are required by applicable law to artists and labels who meet the relevant reporting thresholds. Tax forms are issued annually for the prior calendar year and delivered to the email address associated with the artist’s or label’s account. Artists and labels are responsible for ensuring their account information is current and accurate for tax reporting purposes.
9.5 EU & UK VAT
For purchasers located in the EU or UK, VAT may be applied to digital purchases in accordance with applicable EU and UK digital services tax rules. The applicable VAT rate is determined by the purchaser’s location. VAT-inclusive pricing is displayed at checkout for affected purchasers.
9.6 Tax Identification
Artists and labels may be required to provide tax identification information — such as a Social Security Number, Employer Identification Number, or equivalent — through Stripe’s onboarding flow in order to receive payouts and for tax reporting purposes. Subvert does not store tax identification numbers directly. All such information is held securely by Stripe.
10. Changes to This Policy
The rates, thresholds, and mechanics described in this Policy are set by the Board of Directors of Subvert Cooperative LCA and may be updated from time to time to reflect changes in platform operations, legal obligations, or cooperative decisions.
10.1 Material Changes
Material changes to this Policy — including changes to the Rights Reserve rate, payout mechanics, or refund terms — will be communicated to affected users via email and a prominent notice on the Service at least 30 days before taking effect. Continued use of the Service after the effective date of a material change constitutes acceptance of the updated Policy.
10.2 Non-Material Changes
Non-material changes such as clarifications, corrections, or updated preset contribution amounts will be posted at subvert.fm/payment-policy with an updated “Last Updated” date. We encourage artists and labels to review this Policy periodically.
10.3 Relationship to Terms of Use
This Policy is incorporated by reference into the Subvert Terms of Use. In the event of any conflict between this Policy and the Terms of Use, the Terms of Use shall control. Changes to this Policy do not require amendment of the Terms of Use unless the Terms of Use itself is affected.
10.4 Board Approval
Updates to this Policy require approval by the Board of Directors of Subvert Cooperative LCA. Changes to the Rights Reserve rate additionally require approval in accordance with the amendment procedures set out in the IP License and Platform Distribution Agreement between Subvert Cooperative LCA and Subvert Incorporated, PBC.
10.5 Contact
Questions about this Policy may be directed to info@subvert.fm.
Subvert Cooperative LCA — Payment Policy — Version 1.0 — Last Updated: April 6, 2026
subvert.fm — info@subvert.fm