For established sellers: There is a cool new feature with direct deposit!!
You can access your current balance in “My Balance” from the main menu. This can be done either through the mobile app or a desktop browser
Credits = Poshmark credits available to you.
These are not redeemable for actual cash and can only be used within the Poshmark app. Credits are earned when you invite a new user to the app and they make their first purchase. Sometimes, Poshmark might also offer you credits to resolve a mistake that they made.
Pending = Funds from sales that Poshmark is currently holding for you.
This will be the amount of your sales after Poshmark’s 20% fee has been taken out. So if you just sold a pair of pants for $20, then you will see $16 in your pending balance. The funds will remain pending until the pants have been delivered to the buyer and accepted (or 72 hours has passed from the delivery time stamp).
Redeemable = Funds that have cleared and are available for you to put into your own bank account.
You can choose how you want to redeem your funds and how much you want to take out or leave in your Poshmark account.
You can redeem your funds by either direct deposit or by requesting that a physical check be mailed to you. Direct deposit will be so much quicker than requesting a check. I have always redeemed my funds through direct deposit. So I’m not sure what Poshmark will do if something goes wrong with requesting a check, like if it gets lost in the mail or stolen.
If you do decide to request a check, then you just need to fill out your name and the address that the check should be mailed to, then confirm the details on the next screen. Since this can take several weeks, make sure that you will still be at the same address for that amount of time. When requesting a check, the entire Redeemable balance will be sent.
Direct deposit is SO much faster. It might take a few days the first time, but now my payment usually clears the next day. When redeeming your funds via direct deposit, you will need to enter your bank account and routing number. I wouldn’t worry too much about security. Poshmark has a team of in-house software developers and I have never heard of anyone’s financial information being compromised through the app. That doesn’t mean it can ever happen, but I think it’s reasonably safe to trust using this feature.
Also, when using direct deposit, we now have the ability to edit the actual dollar amount before requesting it! (Up to the actual amount redeemable, of course) That means, if you have $27.36 available, but you only want to transfer $5 to your bank account and leave the rest in Poshmark, you can totally do that.
When you submit your payment, you will see a confirmation on the screen and you should also receive an email confirming your request for direct deposit or a check.
And then you get paid!! Woohoo!
When to Redeem Your Poshmark Funds
You can redeem or not redeem your money however you wish. And this is made even easier with the new feature that lets you choose exactly how much money to deposit into your bank account.
Some sellers redeem their balance after each sale clears. Or once a day if they are consistently making multiple sales a day.
Other sellers wait and redeem their balance once a week or once a month.
You can also keep the funds in Poshmark and consider it a savings account alternative. I did this for a while when I was saving up for a front loader washing machine and dryer set. I figured that, if the money was in my bank account, I was more likely to spend it, so I just left it in Poshmark until I had met my goal.
Although, the risk of leaving the funds in Poshmark is that it can be tempting to make more purchases in the app because you already have a balance in there. But if you are already planning on doing some shopping, then it’s super convenient to just use your earned funds. It’s basically like shopping for free!
Do you usually use your earnings to buy more clothes in the app or do you transfer them to yourself and get paid for all of your sales? Drop a note in the comments below!