Selling Online
How Payments Work on Local Cottage Foods
Card payments run through secure checkout. On the Free plan, funds are held and paid out after a short verification period and a 2.5% marketplace fee applies to the item subtotal; on Pro, you pay 0% and connect your own account for faster, direct payouts. Pro also unlocks Pay at Pickup, with direct Square payments coming soon. The marketplace fee never touches delivery or tax.
Knowing exactly how money flows — and what you keep — lets you price confidently and pick the right plan. Here's the full picture of payments on Local Cottage Foods.
Secure card checkout
Card orders go through secure checkout backed by a payment processor you connect during setup. Buyers pay safely; you get a clean record of every order. To take card payments at all, you connect a payout account — this is part of setting up your seller account.
Free vs Pro: what you keep
| Free | Pro | |
|---|---|---|
| Marketplace fee | 2.5% of item subtotal | 0% |
| Payout speed | After fulfillment + short verification hold | Direct to your account, processor's normal schedule |
| Square | Not available | Connect your own Square (coming soon) |
| Pay at Pickup | Not available | Accept cash/check in person |
| Cost | $0/month | Flat subscription (see pricing) |
What the fee does and doesn't touch
The marketplace fee applies only to your item subtotal — never to delivery fees or sales tax, which flow entirely to you. Standard card-processing fees from the processor are separate and apply on both plans. Factor the marketplace fee into your prices using how to price homemade food for profit.
Card checkout and Pay at Pickup aren't either/or — Pro sellers can offer both. For when to use each at the buyer level, see online checkout vs. pay at pickup.
Join Local Cottage Foods Pro
Unlock more tools to grow your home food business and reach more local customers.
Frequently asked questions
What fee does Local Cottage Foods take?
On the Free plan, a 2.5% marketplace fee on the item subtotal (not on delivery or tax). On Pro, the marketplace fee is 0% — you pay a flat subscription instead. Standard card-processing fees from the payment processor apply on either plan.
When do I get paid?
On Free, funds are released after the order is fulfilled and a short verification period. On Pro with direct payments, payouts go straight to your connected account on the processor's normal schedule, with no added hold.
Do I have to connect Stripe?
To accept card payments, yes — secure checkout runs through a connected account. Pro sellers can also enable Pay at Pickup to take cash in person, with direct Square payments coming soon.
Explore the marketplace
Related guides
Selling Online
Online Checkout vs. Pay-at-Pickup
Compare online card checkout and pay-at-pickup for your homemade food business: pros, cons, no-show risk, fees, and when to offer each (or both).
Selling Online
How to Price Homemade Food for Profit
A simple framework to price homemade food for profit: cover ingredients, packaging, and your time, then set prices that sell without underselling your work.
Getting Started
How to Set Up Your Local Cottage Foods Seller Account
A step-by-step walkthrough of setting up a Local Cottage Foods seller account: the guided setup, what it takes to go live, and what you need to accept your first order.