FAQs & Help

Here's What You Should Know About Working with Groupon

How Groupon Works

What is Groupon and how does it work for businesses?

Groupon is an online marketplace that connects your business with millions of shoppers seeking unique experiences and local services. By listing a promotional offer on Groupon’s website and mobile app, you can boost your brand visibility, attract new customers, and drive revenue.

Best of all, Groupon’s pay-for-performance model means you only pay a marketing fee after a customer redeems their voucher, with no upfront advertising costs. This makes Groupon a low-risk, high-reward way to grow your business.

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How do I sell on Groupon?


First, fill out our Groupon Merchant intake form so we can get to know your business. Once your submission is processed, you'll be directed to create an account for our Merchant Center portal, where you can build and edit campaigns, review performance, and more.

For more details, see our guide on How to Sell on Groupon.

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What types of businesses work with Groupon?

Whether you’re a small local business or a well-established brand, Groupon helps you increase your exposure, find new customers, and grow your business. Groupon works with a wide variety of businesses across many industries, including:

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Costs & Commission Rates

How much does it cost to advertise on Groupon?

There are no upfront fees to start a Groupon campaign. Groupon covers all setup and promotion costs, and you only pay a commission after each customer redeems their voucher. This pay-for-performance model ensures you only pay for actual results, not just clicks or impressions, making it a risk-free and cost-effective way to attract new customers to your business. The commission rates vary based on your industry, deal structure, and campaign goals.

1.

No upfront costs, no pay-per-click

2.

Only charges a fee on sales we generate

3.

If no sales, then it’s just free exposure

VS.

Other Online Platforms

1.

Charges you for each view or click

2.

You hope those result in leads and sales

3.

If not, you spent more than you got back

Traditional Advertising

1.

Charges you upfront just to host your ad

2.

You hope the visibility drives new business

3.

If not, it’s your loss – they got your money

Did this answer your question?

 

How does Groupon charge merchants?

Here’s how it works:

  1. A customer purchases a Groupon voucher, and Groupon holds the payment until the voucher is redeemed or refunded.
  2. The customer redeems the voucher and receives your product or service.
  3. Groupon pays you the revenue from the purchase, minus a commission fee that covers marketing and platform costs.

Since the fee is deducted from the revenue your campaign generates, there’s no out-of-pocket cost to you. This means Groupon only makes money when you make money, ensuring we’re focused on driving real results for your business.

Did this answer your question?

 

What percentage does Groupon take?

Contrary to the myth that Groupon always requires a 50% discount and then takes another 50% commission, our commission rate is flexible and tailored to your business. The rate depends on factors like your industry, the discount you set on your offer, your campaign structure, and more. Groupon provides recommendations on pricing and discounts during deal creation, helping ensure the campaign’s commission rate is aligned with your business goals and market conditions.

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Campaign Setup & Management

How do I create and advertise a campaign on Groupon?


First, sign up to become a Groupon merchant and access the Merchant Center portal. From there, use the self-service Campaign Manager tool to build your campaign. You can choose from pre-designed templates tailored to your business category or create a fully customized campaign by setting your own price, discount, redemption limits, expiration dates, and fine print details. You can even upload your own images to make your offer stand out. If you have multiple locations, you can include all of them during the campaign setup process.

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Can I limit the number of Groupons sold?

Yes, you can set a monthly cap on the number of vouchers sold for your campaign, to ensure you don’t exceed your business’s capacity. This helps prevent overwhelming demand and ensures a positive experience for both you and your customers. Groupon will notify you when your deal is 90% sold out, and you can view or adjust the cap at any time using the self-service Campaign Manager tool in Merchant Center.

If your campaign becomes too busy, you can also always pause it with the Campaign Manager. However, you’ll still need to honor any vouchers already sold. To better manage demand, consider making your deal bookable, allowing customers to select specific timeslots when purchasing.

Did this answer your question?

 

How long does it take for a Groupon campaign to go live?

The sign-up process is quick—if you have your information ready, it only takes a few minutes to complete the intake form. After submitting the form, you’ll typically receive approval within 1-2 days to create a Merchant Center account, where you can build your Groupon campaign.

Once you’ve built and submitted the campaign, it usually takes another 1-2 days for it to be approved for launch, at which time you’ll receive an email with your expected launch date and a preview of the deal page. For first-time Groupon merchants, ensure you’ve submitted your bank and tax information during setup, as these details are required before your campaign can launch.

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Redeeming or Refunding Vouchers

Why is it important to mark vouchers as redeemed?

Redeeming Groupon vouchers is essential to ensure you get paid for your services, prevent duplicate redemptions, and track customer activity. When you redeem a voucher, it confirms the customer has been serviced, protecting your revenue from invalid refund requests. Additionally, redeeming the voucher generates a prompt in the customer’s Groupon account for them to leave feedback, which you can view in Merchant Center to improve your business.

Did this answer your question?

 

How do customers redeem Groupon vouchers?


You have several options for how to redeem a Groupon voucher:

  • Scan the Voucher: Use the free Groupon Merchant app (available on Apple or Android) to scan the voucher’s barcode on the spot.
  • Manual Entry: In your Merchant Center, type the voucher’s security code to redeem it individually or in bulk.
  • Automatic Check-In: If you use Groupon’s booking solutions, vouchers are automatically marked as redeemed when customers check in for their appointment.
  • Customer Self-Redemption: Customers can redeem their own vouchers by tapping “Mark as Redeemed” on their device, which instantly updates the status.

When redeeming, you can optionally log the customer’s total bill (including additional spending and tips) to track the full value they bring to your business. For step-by-step instructions, refer to the Merchant Center or watch our video walkthrough.

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Why does my customer’s Groupon say “pending”, “rejected”, or “not found”?

Here’s what these statuses mean and how to resolve them:

  • “Pending”: The customer’s payment hasn’t cleared yet. Once it processes, the voucher will be ready for redemption.
  • “Rejected”: The customer’s payment failed, so no valid voucher was issued. Do not redeem these vouchers—always validate a voucher at the time of scheduling or use.
  • “Not Found”: This usually happens if you’re in the wrong Merchant Center account (e.g., for multiple businesses or locations). Switch accounts using the “Change Account” option, or contact Merchant Support for assistance.

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How are refunds handled?

Groupon may issue refunds to customers for various reasons, such as special circumstances or valid complaints. To avoid servicing refunded vouchers, always check the status of vouchers in your Merchant Center before redemption. If a refund is issued for a voucher you’ve already marked as redeemed, your share of the voucher’s value will be deducted from your next payment.

Did this answer your question?

 

Can I contact Groupon for refunds?

If you’d like to request a refund for a customer:

  1. Provide the customer with written confirmation that you’ve agreed to the refund request.
  2. Have the customer contact Groupon Customer Support through their Groupon account.
  3. If the customer is unable to contact support, you can submit a refund request to Groupon with the following details:
    • The reason for the refund
    • The customer’s full name
    • The voucher code

This process ensures refunds are handled fairly while protecting your revenue and maintaining transparency.

Did this answer your question?

 

Payment Processing

When and how does Groupon pay merchants?


Groupon pays merchants on a twice-monthly basis, with payments typically issued on the 1st and 16th of each month (or the next business day if those dates fall on a weekend or holiday). There are two payment models:

  • Pay on Redemption: You’re paid for vouchers marked as redeemed during the preceding period. For example, on the 16th, you’ll be paid for vouchers redeemed from the 1st through the 15th, minus any refunds.
  • Pay on View: If you use custom codes for redemption, you’re paid based on customers who have accessed or viewed their voucher codes, with no additional steps required.

For more information, check out our video tutorial.

Did this answer your question?

 

Where can I see my past and pending payments?

In the Payments section of your Merchant Center, you can view payment details, including the total payout, number of vouchers sold, and a downloadable breakdown of each transaction.

Did this answer your question?

 

How Groupon Works


 

Groupon is an online marketplace that connects your business with millions of shoppers seeking unique experiences and local services. By listing a promotional offer on Groupon’s website and mobile app, you can boost your brand visibility, attract new customers, and drive revenue.

Best of all, Groupon’s pay-for-performance model means you only pay a marketing fee after a customer redeems their voucher, with no upfront advertising costs. This makes Groupon a low-risk, high-reward way to grow your business.

Did this answer your question?

 

 

First, fill out our Groupon Merchant intake form so we can get to know your business. Once your submission is processed, you'll be directed to create an account for our Merchant Center portal, where you can build and edit campaigns, review performance, and more.

For more details, see our guide on How to Sell on Groupon.

Did this answer your question?

 

 

Whether you’re a small local business or a well-established brand, Groupon helps you increase your exposure, find new customers, and grow your business. Groupon works with a wide variety of businesses across many industries, including:

Did this answer your question?

 

Costs & Commission Rates


 

There are no upfront fees to start a Groupon campaign. Groupon covers all setup and promotion costs, and you only pay a commission after each customer redeems their voucher. This pay-for-performance model ensures you only pay for actual results, not just clicks or impressions, making it a risk-free and cost-effective way to attract new customers to your business. The commission rates vary based on your industry, deal structure, and campaign goals.

1. No upfront costs, no pay-per-click

2. Only charges a fee on sales we generate

3. If no sales, then it’s just free exposure

VS.

Other Online Platforms

1. Charges you for each view or click

2. You hope those result in leads and sales

3. If not, you spent more than you got back

Traditional Advertising

1. Charges you upfront just to host your ad

2. You hope the visibility drives new business

3. If not, it’s your loss – they got your money

Did this answer your question?

 

 

Here’s how it works:

  1. A customer purchases a Groupon voucher, and Groupon holds the payment until the voucher is redeemed or refunded.
  2. The customer redeems the voucher and receives your product or service.
  3. Groupon pays you the revenue from the purchase, minus a commission fee that covers marketing and platform costs.

Since the fee is deducted from the revenue your campaign generates, there’s no out-of-pocket cost to you. This means Groupon only makes money when you make money, ensuring we’re focused on driving real results for your business.

Did this answer your question?

 

 

Contrary to the myth that Groupon always requires a 50% discount and then takes another 50% commission, our commission rate is flexible and tailored to your business. The rate depends on factors like your industry, the discount you set on your offer, your campaign structure, and more. Groupon provides recommendations on pricing and discounts during deal creation, helping ensure the campaign’s commission rate is aligned with your business goals and market conditions.

Did this answer your question?

 

Campaign Setup & Management


 

First, sign up to become a Groupon merchant and access the Merchant Center portal. From there, use the self-service Campaign Manager tool to build your campaign. You can choose from pre-designed templates tailored to your business category or create a fully customized campaign by setting your own price, discount, redemption limits, expiration dates, and fine print details. You can even upload your own images to make your offer stand out. If you have multiple locations, you can include all of them during the campaign setup process.

Did this answer your question?

 

 

Yes, you can set a monthly cap on the number of vouchers sold for your campaign, to ensure you don’t exceed your business’s capacity. This helps prevent overwhelming demand and ensures a positive experience for both you and your customers. Groupon will notify you when your deal is 90% sold out, and you can view or adjust the cap at any time using the self-service Campaign Manager tool in Merchant Center.

If your campaign becomes too busy, you can also always pause it in Merchant Center. However, you’ll still need to honor any vouchers already sold. To better manage demand, consider making your deal bookable, allowing customers to select specific timeslots when purchasing.

Did this answer your question?

 

 

The sign-up process is quick—if you have your information ready, it only takes a few minutes to complete the intake form. After submitting the form, you’ll typically receive approval within 1-2 days to create a Merchant Center account, where you can build your Groupon campaign.

Once you’ve built and submitted the campaign, it usually takes another 1-2 days for it to be approved for launch, at which time you’ll receive an email with your expected launch date and a preview of the deal page. For first-time Groupon merchants, ensure you’ve submitted your bank and tax information during setup, as these details are required before your campaign can launch.

Did this answer your question?

 

Redeeming or Refunding Vouchers


 

Redeeming Groupon vouchers is essential to ensure you get paid for your services, prevent duplicate redemptions, and track customer activity. When you redeem a voucher, it confirms the customer has been serviced, protecting your revenue from invalid refund requests. Additionally, redeeming the voucher generates a prompt in the customer’s Groupon account for them to leave feedback, which you can view in Merchant Center to improve your business.

Did this answer your question?

 

 

You have several options for how to redeem a Groupon voucher:

  • Scan the Voucher: Use the free Groupon Merchant app (available on Apple or Android) to scan the voucher’s barcode on the spot.
  • Manual Entry: In your Merchant Center, type the voucher’s security code to redeem it individually or in bulk.
  • Automatic Check-In: If you use Groupon’s booking solutions, vouchers are automatically marked as redeemed when customers check in for their appointment.
  • Customer Self-Redemption: Customers can redeem their own vouchers by tapping “Mark as Redeemed” on their device, which instantly updates the status.

When redeeming, you can optionally log the customer’s total bill (including additional spending and tips) to track the full value they bring to your business. For step-by-step instructions, refer to the Merchant Center or watch our video walkthrough.

Did this answer your question?

 

 

Here’s what these statuses mean and how to resolve them:

  • “Pending”: The customer’s payment hasn’t cleared yet. Once it processes, the voucher will be ready for redemption.
  • “Rejected”: The customer’s payment failed, so no valid voucher was issued. Do not redeem these vouchers—always validate a voucher at the time of scheduling or use.
  • “Not Found”: This usually happens if you’re in the wrong Merchant Center account (e.g., for multiple businesses or locations). Switch accounts using the “Change Account” option, or contact Merchant Support for assistance.

Did this answer your question?

 

 

Groupon may issue refunds to customers for various reasons, such as special circumstances or valid complaints. To avoid servicing refunded vouchers, always check the status of vouchers in your Merchant Center before redemption. If a refund is issued for a voucher you’ve already marked as redeemed, your share of the voucher’s value will be deducted from your next payment.

Did this answer your question?

 

 

If you’d like to request a refund for a customer:

  1. Provide the customer with written confirmation that you’ve agreed to the refund request.
  2. Have the customer contact Groupon Customer Support through their Groupon account.
  3. If the customer is unable to contact support, you can submit a refund request to Groupon with the following details:
    • The reason for the refund
    • The customer’s full name
    • The voucher code

This process ensures refunds are handled fairly while protecting your revenue and maintaining transparency.

Did this answer your question?

 

Payment Processing


 

Groupon pays merchants on a twice-monthly basis, with payments typically issued on the 1st and 16th of each month (or the next business day if those dates fall on a weekend or holiday). There are two payment models:

  • Pay on Redemption: You’re paid for vouchers marked as redeemed during the preceding period. For example, on the 16th, you’ll be paid for vouchers redeemed from the 1st through the 15th, minus any refunds.
  • Pay on View: If you use custom codes for redemption, you’re paid based on customers who have accessed or viewed their voucher codes, with no additional steps required.

For more information, check out our video tutorial.

Did this answer your question?

 

 

In the Payments section of your Merchant Center, you can view payment details, including the total payout, number of vouchers sold, and a downloadable breakdown of each transaction.

Did this answer your question?