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Update by user Jan 11, 2016

Here is the mail thread with the CEO of Gumroad - http://i.imgur.com/qtk6Rlj.jpg

Original review posted by user Jan 09, 2016

We have (or rather had) two accounts with Gumroad (GR) and were pretty happy about it. We loved GR ... until yesterday!

On 29th Dec, our accounts were suspended without any stating reasons or any notification from GR. We contacted their support, they simply apologized and "un-suspended" the accounts. We lost a day worth of sales, but lets just move on, right?

Wrong! They blocked our accounts again on 7th Jan and this time they refunded all the (unwithdrawn) amount we earned to buyers! shocker!

We asked, the CEO (Mr. Sahil) said, sorry but find another provider. We can't sustain our business with more than 1% chargeback. Wait.. what?

We have had 3 chargebacks in 41 odd transactions. Out of these we won the first one and rest two were filed on 7th Jan itself, so we are in progress with buyers to understand their problem.

Now one may ask

- Why did Gumroad not send any notification on account suspension?

- Why did they suspend our accounts the first time around and just brought them back? What happened back then?

- If 1% has to be calculated, they should take a good sample, say atleast 100 transactions!!!

- If 1% is legit, they why didn't they put this in their terms?[https://gumroad.com/terms]

- If 1% is all it takes to bring down Gumroad, will they sustain their business model?

Either system messed up big time or they seriously have some fundamental flaws with their policy.

My intentions to post this here are simple - to let everyone know about their "hidden" policy to make sure sellers are prepared next time! That's all.

PS: We calculated our lost earnings last night (by going through emails from GR) and it looks like we lost around $797 + (two days of lost sales due to account suspension). :-(

Review about: Gumroad Account.

Review #767073 is a subjective opinion of a user.

Customer service
Reason of Review / Monetary Loss Poor customer service / $797
Preferred solution Let the company propose a solution

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Sahil is quite clear in this exchange that your account was a liability. We are not allowed, by our banking partners, to let users rack up more than 1% CB volume in their sales.

If you don't like the fact that chargebacks exist, or that they pose financial risks to companies, you're more than welcome to take it up with your local government and propose new laws covering credit cards.


I have had similar experience with gumroad.. Pathetic service advice not to use.

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