Understanding Commissions, Fees, and Tips
Ready to count your earnings? Here’s how it works:
Your storage rate + tips − LuggageHero commission − service charge = your payout
We believe in keeping things transparent and easy to understand.
This article explains exactly how your earnings are calculated and what each deduction means.
Purpose
To explain how commissions, service charges, and tips are applied to partner earnings and payouts.
Applies to
Platform: LuggageHero Partner Dashboard
Audience: Active Partner Locations and Organization Owners
1. Commission
As a partner, you pay a commission on the total income earned from hourly or daily storage rates.
This commission covers the cost of connecting you with travelers through the LuggageHero platform.
Commission is automatically deducted from customer payments.
The remaining amount (minus service fees) is your partner payout.
Example: If a traveler pays $10 for storage, your base earnings before fees would be $4.5.
2. Service charge
Each booking includes a service charge, which covers platform and payment processing costs.
The service charge consists of:
$0.25 per bag (LuggageHero service fee)
2.9% + $0.30 per transaction (standard Stripe payment processing fee)
+1% for international card transactions
This charge appears on your quarterly payout statement under “Service Charge.”
You can view full details on Stripe’s pricing page: www.stripe.com/pricing
3. Tips
Tips are 100% yours.
LuggageHero does not deduct any commission or service fees from tips.
Tips are displayed separately in your payout summary and processed as part of your regular payout schedule. This ensures seamless integration where all your earnings, including tips, are processed together according to your payout frequency and payout method.
4. Tax responsibilities
As a partner, you are responsible for understanding and meeting any local tax obligations, including:
VAT or GST
Other indirect taxes
Income tax on your LuggageHero earnings
VAT may apply to specific fees depending on your country’s regulations.
Learn more in “Value Added Tax (VAT) and How It Applies to You.”
5. Deductions from customer payments
When customers pay for storage, LuggageHero automatically deducts:
The commission
The service fee
Any outstanding adjustments (e.g., partial refunds or corrections)
The remaining amount is what appears as your payout.
6. If your payout and dashboard revenue don’t match
There are several reasons your dashboard revenue may differ from your payout amount:
Direct payments: Cash or in-store payments are not included in your LuggageHero payout.
VAT: May be added to fees, depending on jurisdiction.
Processing fee: Your financial institution may charge its own transfer or currency fee.
Currency exchange: If your location’s currency differs from your payout currency, conversion fees apply.
Adjustments: Partial or full refunds issued after customer review may affect total revenue.
Summary
Partners pay a commission on storage rates.
Each booking includes per bag service charge plus Stripe processing fees.
Tips are 100% yours. No deductions.
Taxes, currency conversions, or refunds may affect your final payout.
Tips are automatically included in regular payouts, ensuring they are processed seamlessly with other earnings.
All deductions are visible in your monthly or quarterly payout statement.
LuggageHero’s transparent commission and fee structure ensures fairness and clarity, helping you understand how every booking contributes to your earnings.