1. Purpose and Scope

The present Settlement Agreement and Policy (“Agreement”) establishes the terms, conditions, procedures, and obligations governing the split-settlement model employed by AllStarBids.com (“AllStarBids,” “we,” “us,” or “our”) in connection with auction transactions conducted through the AllStarBids platform located at allstarbids.com (the “Platform”), including all related tools, features, and services (collectively, the “Services”). AllStarBids is owned and operated from the Province of Ontario, Canada.

By listing an item for sale, placing a bid, winning an auction, or otherwise participating in any transactional feature of the Platform, you (“User,” “you,” or “your,” whether acting as a Buyer or Seller) acknowledge that you have read, understood, and agree to be bound by the terms of this Agreement. The provisions herein are incorporated by reference into the Terms of Service, the User Agreement, the Buyer Agreement, and the Seller Agreement, and should be read in conjunction with each of those documents. In the event of any inconsistency between this Agreement and any other Platform document on the specific subject matter of settlement, commission collection, and post-auction payment procedures, the provisions of this Agreement shall prevail.

2. Overview of the Split-Settlement Model

AllStarBids operates a split-settlement model designed to support its auction marketplace operations. Under this model, the total hammer price of a successfully auctioned item is settled in two stages:

First, upon auction close, AllStarBids collects a marketplace operations commission equal to 9.5% of the final hammer price from the winning Buyer’s credit card on file (or an alternative credit card designated by the Buyer). Second, the winning Buyer remits the remaining balance of the hammer price, together with any applicable shipping charges and taxes, directly to the Seller using a payment method accepted by the Seller.

The 9.5% commission collected by AllStarBids constitutes the Seller’s full commission obligation to the Platform. It is not an additional fee, surcharge, or premium imposed upon the Buyer. Rather, it is a portion of the total hammer price that is deducted and allocated to AllStarBids before the remaining balance is payable to the Seller. The Seller acknowledges and agrees that this structure satisfies the Seller’s commission obligation in its entirety.

3. Commission Collection and Processing

3.1 Timing of Commission Charge

Immediately following the close of an auction and the determination of a winning bidder, AllStarBids will initiate a charge to the winning Buyer’s credit card on file in the amount of 9.5% of the final hammer price. Where the Buyer has won more than one auction lot within the same weekly auction cycle, the 9.5% commission will be calculated on a per-lot basis and may be processed as a single consolidated charge representing the aggregate commission across all won lots.

3.2 Nature and Characterization of the Commission Charge

The 9.5% commission charge serves a dual function. From the perspective of the Buyer, it operates as a deposit that secures the won auction lot and confirms the Buyer’s commitment to completing the transaction. From the perspective of the Seller, it represents the Seller’s pre-agreed commission obligation to AllStarBids, deducted from the hammer price before the remaining proceeds are remitted by the Buyer to the Seller.

For the avoidance of all doubt: the Buyer pays only the total hammer price (plus any applicable shipping charges and taxes). No buyer’s premium, surcharge, or additional fee is imposed by AllStarBids beyond the hammer price. The 9.5% is an allocation within the hammer price, not an addition to it.

3.3 Alternative Payment Method

If the winning Buyer wishes to have the 9.5% commission charged to a credit card other than the one on file, AllStarBids will accommodate this request through the invoice issued to the Buyer following auction close. The Buyer must communicate this preference promptly upon receipt of the auction confirmation or settlement invoice. AllStarBids reserves the right to verify the validity and authorization of any alternative payment method before processing.

4. Failed Commission Payments

4.1 Initial Failure and Cure Period

In the event that the credit card transaction for the 9.5% commission charge is declined, fails, or cannot be processed for any reason, AllStarBids will notify the winning Buyer promptly and afford the Buyer a period of twenty-four (24) hours from the time of notification to provide a valid alternative payment method. During this cure period, the Buyer’s winning position is held in reserve, and no contact is initiated with any runner-up bidder.

4.2 Forfeiture Upon Failure to Cure

Should the winning Buyer fail to furnish a valid, functioning payment method within the twenty-four (24) hour cure period, the winning bid shall be deemed forfeited. Upon forfeiture, the Buyer relinquishes all rights to the auction lot, and AllStarBids reserves the right, at its sole discretion, to impose account restrictions, record a strike under the Platform’s enforcement policy, or pursue any other remedial action.

4.3 Runner-Up Bidder Procedures

Following forfeiture by the original winning Buyer, AllStarBids may contact the next-highest bidder (the “runner-up”) and offer them the opportunity to assume the winning position at their bid price. The runner-up is under no obligation to accept the offer. Should the runner-up accept, the 9.5% commission charge will be processed to the runner-up’s credit card on file (or an alternative card they designate), and a settlement invoice will be issued to both the runner-up and the Seller in accordance with the procedures set forth in Section 5.

If the runner-up declines the offer or fails to provide a valid payment method within twenty-four (24) hours, the auction lot shall be nullified. AllStarBids will notify the Seller of the nullification, and the Seller may relist the item in a subsequent auction cycle at their discretion. AllStarBids bears no liability to the Seller for lost proceeds, opportunity costs, or any other damages arising from the nullification of an auction lot under these circumstances.

5. Settlement Invoice

5.1 Issuance and Content

Upon the successful processing of the 9.5% commission charge, AllStarBids will issue a settlement invoice to both the winning Buyer and the Seller via email. The settlement invoice serves as formal confirmation of the auction results and as an introduction between the parties for the purpose of completing the transaction. Each settlement invoice shall contain the following information:

The auction lot number and item description. The final hammer price. The amount collected by AllStarBids as the 9.5% marketplace operations commission (deposit). The remaining balance payable by the Buyer directly to the Seller. The Seller’s accepted payment methods (as provided by the Seller in their account profile or listing). The Buyer’s shipping name and address (as recorded in the Buyer’s account profile). Any applicable shipping charges disclosed in the listing. The seventy-two (72) hour payment deadline and the seventy-two (72) hour shipping deadline.

5.2 Purpose and Effect

The settlement invoice is a transactional document that confirms the obligations of both parties following auction close. It does not create any contractual relationship between AllStarBids and either party beyond what is established in the Terms of Service, User Agreement, Buyer Agreement, Seller Agreement, and this Agreement. AllStarBids’ role in issuing the settlement invoice is limited to facilitating the introduction of the parties and confirming the financial terms of the settled auction; AllStarBids is not a party to the contract of sale formed between the Buyer and the Seller.

6. Buyer’s Post-Auction Obligations

6.1 Payment of the Remaining Balance

The winning Buyer is obligated to remit the remaining balance of the hammer price (being the total hammer price less the 9.5% commission already collected by AllStarBids), together with any applicable shipping charges and taxes as agreed, directly to the Seller within seventy-two (72) hours of auction completion. Payment must be made using a method accepted by the Seller, as disclosed in the settlement invoice or communicated by the Seller following its issuance.

6.2 Consequences of Non-Payment

Failure by the Buyer to remit the remaining balance to the Seller within the seventy-two (72) hour payment window constitutes a material breach of the Buyer Agreement and this Agreement. In such circumstances, AllStarBids reserves the right, at its sole discretion, to take any or all of the following actions: record a strike under the Platform’s two-strike enforcement policy; suspend or terminate the Buyer’s account; forfeit any deposit previously collected; restrict future bidding privileges; and pursue any other remedial action available under the Terms of Service or applicable law.

6.3 Shipping Address and Communication

If the Buyer’s intended shipping destination differs from the address recorded in the Buyer’s account profile, the Buyer must notify the Seller promptly following issuance of the settlement invoice and provide updated shipping instructions. The Buyer may also communicate with the Seller to coordinate payment processing, confirm the Seller’s accepted payment methods, and arrange any other logistical details reasonably necessary to complete the transaction. All such communication shall be conducted solely for the purpose of completing the relevant transaction and shall comply with the post-auction communication provisions set forth in the Terms of Service and User Agreement.

7. Seller’s Post-Auction Obligations

7.1 Acknowledgment of Commission Deduction

By listing items on AllStarBids, the Seller acknowledges and agrees that the 9.5% marketplace operations commission is deducted from the total hammer price and collected by AllStarBids directly from the Buyer’s credit card before the remaining balance is remitted to the Seller. The settlement invoice will clearly reflect this deduction, and the Seller shall not seek to recover the commission amount from the Buyer or from AllStarBids.

7.2 Receipt of Payment and Shipping Obligation

Once the Seller has confirmed receipt of the remaining balance from the Buyer, the Seller must ship the item to the Buyer within seventy-two (72) hours. Shipping must be conducted in accordance with the terms disclosed in the auction listing and confirmed in the settlement invoice, including the agreed-upon carrier, method, and any applicable insurance or tracking requirements.

As a general standard of reasonable expectation, Sellers should endeavour to dispatch items within forty-eight (48) hours of confirmed payment receipt, unless a different timeline has been explicitly stated in the listing or mutually agreed upon with the Buyer per the settlement invoice.

7.3 Consequences of Failure to Ship

Failure by the Seller to ship the item within the prescribed seventy-two (72) hour window, absent a valid and documented reason communicated to both the Buyer and AllStarBids, constitutes a material breach of the Seller Agreement and this Agreement. AllStarBids reserves the right to record a strike, suspend or terminate the Seller’s account, and take any other enforcement action available under the Terms of Service.

7.4 Communication of Payment Methods

The Seller is responsible for ensuring that their accepted payment methods are clearly and accurately communicated to the Buyer, whether through the listing, the Seller’s account profile, or direct communication following issuance of the settlement invoice. AllStarBids is not responsible for payment failures, delays, or disputes arising from the Seller’s failure to disclose accepted payment methods in a timely and clear manner.

7.5 Transfer of Risk Upon Delivery Confirmation

Once the shipping carrier’s tracking system records the item as delivered, whether through electronic delivery confirmation, signature capture, proof-of-delivery scan, or equivalent carrier record, the Seller’s obligation with respect to shipment shall be deemed fully discharged. Any claim arising after delivery confirmation, including allegations of non-receipt, porch theft, package tampering, or damage discovered after acceptance of the parcel, must be pursued by the Buyer directly with the shipping carrier or, where appropriate, with local law enforcement authorities. AllStarBids shall bear no liability for any event, loss, or claim arising after the carrier has confirmed delivery of the item.

7.6 Packaging Discretion and Security

Sellers are strongly advised not to disclose, indicate, describe, or suggest the contents, identity, or value of any item on the exterior of the shipping package, label, envelope, or any associated customs documentation visible from the outside of the parcel, except where such disclosure is mandated by applicable customs regulations for international shipments. External markings, product branding, item descriptions, or value declarations affixed to or printed on the outside of a package materially increase the risk of theft during transit. AllStarBids recommends that all Sellers use plain, unmarked outer packaging and exercise discretion in the preparation of shipments, particularly for high-value collectibles, trading cards, and memorabilia.

8. Platform Role and Payment Handling Disclaimer

AllStarBids’ involvement in the financial aspect of each transaction is strictly limited to the collection of the 9.5% marketplace operations commission from the winning Buyer’s credit card. Beyond this single charge, AllStarBids does not collect, process, hold, escrow, distribute, or otherwise handle payments between Buyers and Sellers.

All payments for the remaining balance of the hammer price, shipping charges, taxes, and any other amounts owed are made directly between the Buyer and the Seller, outside of the AllStarBids platform, using payment methods mutually agreed upon by the parties. Accordingly, AllStarBids does not guarantee payment from Buyers, does not guarantee delivery of items by Sellers, does not guarantee the safe arrival of items shipped by carriers, does not adjudicate or serve as an intermediary in shipping claims between Users and carriers, does not control or supervise the payment arrangements between the parties, and does not provide escrow, payment processing, or transaction settlement services beyond the initial commission charge.

9. Chargebacks, Payment Disputes, and Reversals

9.1 Buyer Chargeback Restrictions

Buyers must refrain from initiating chargebacks, payment disputes, or reversals with their credit card issuer or financial institution in respect of the 9.5% commission charge until a formal resolution attempt has been undertaken directly with AllStarBids. Initiating an unjustified, premature, or abusive chargeback against the commission charge constitutes a material breach of the Buyer Agreement and this Agreement. AllStarBids reserves the right to immediately suspend the Buyer’s account, withhold future auction privileges, and pursue recovery of the reversed funds together with processor penalties, administrative fees, and investigation costs.

9.2 Buyer Payment Finality

By placing a bid and winning an auction, the Buyer represents and warrants that the Buyer is authorized to use the credit card provided for the commission charge, that the transaction is legitimate, and that the Buyer will not initiate unjustified chargebacks or payment reversals.

9.3 Seller Payment Disputes

AllStarBids has no involvement in, and accepts no liability for, payment disputes arising between the Buyer and the Seller in respect of the remaining balance. All such disputes must be resolved exclusively between the parties, in accordance with the dispute resolution provisions set forth in the Terms of Service, the Buyer Agreement, and the Seller Agreement.

10. Non-Circumvention

10.1 Prohibition

Users agree not to circumvent AllStarBids’ split-settlement model, fee structure, or transactional processes by any means, including but not limited to: cancelling auctions to avoid commission obligations; completing transactions outside the Platform with parties introduced through AllStarBids; diverting Buyers to private payment channels; sharing contact information for the purpose of off-platform sales; or altering listing terms to reduce or avoid commission charges.

10.2 Ninety-Day Protection Period

For a period of ninety (90) days following the close of any auction, the Buyer and the Seller introduced through that auction may not complete a private transaction for the same item outside the Platform. Should such a transaction occur, the Seller agrees that the standard 9.5% commission remains due and payable to AllStarBids.

10.3 Commission Recovery

If AllStarBids determines that a transaction has been completed off-platform in contravention of this Section, AllStarBids may take any or all of the following actions: invoice the Seller for the applicable commission; charge any payment method on file; offset amounts against future auction proceeds; suspend or permanently terminate the accounts of both parties; and pursue all available legal remedies, including the recovery of legal costs and disbursements.

11. Limitation of Liability

AllStarBids is not a party to the direct payment transaction between the Buyer and the Seller for the remaining balance of the hammer price. AllStarBids does not guarantee the performance, solvency, or good faith of either party with respect to any aspect of the transaction occurring after issuance of the settlement invoice.

To the fullest extent permitted by applicable law, AllStarBids shall not be liable for: non-payment by any Buyer; failure by any Seller to ship an item; payment disputes, chargebacks, or reversals between Buyers and Sellers; lost, delayed, or damaged shipments; the accuracy of information provided by either party in connection with the settlement process; or any other loss, damage, or claim arising from the direct transaction between the Buyer and the Seller.

In all cases, AllStarBids’ total aggregate liability in connection with any claim arising under this Agreement shall not exceed the amount of the 9.5% commission actually collected by AllStarBids in respect of the specific transaction giving rise to the claim.

12. Dispute Resolution and Governing Law

The dispute resolution and arbitration provisions set forth in the Terms of Service apply in full to this Agreement. All disputes arising out of or relating to this Agreement, the commission charge, the settlement invoice, or the split-settlement model must first be subject to informal resolution through written notice to AllStarBids at support@allstarbids.com, followed by a minimum thirty (30) day period of good-faith negotiation. Unresolved disputes shall be submitted to final and binding arbitration in the Province of Ontario, Canada, pursuant to the Arbitration Act, 1991, S.O. 1991, c. 17, before a single neutral arbitrator. All disputes must be brought individually; class actions, representative proceedings, and jury trials are waived to the fullest extent permitted by law.

This Agreement shall be governed by and construed in accordance with the laws of the Province of Ontario and the federal laws of Canada applicable therein, without regard to conflict-of-law principles. To the extent that any matter falls outside the scope of the arbitration provisions, the courts of the Province of Ontario located in the City of Toronto shall have exclusive jurisdiction.

13. Electronic Contracting

By placing a bid, listing an item, clicking “I Agree,” or otherwise accepting this Agreement through the Platform’s electronic interface, you acknowledge that your acceptance constitutes a valid and enforceable electronic agreement within the meaning of the Electronic Commerce Act, 2000, S.O. 2000, c. 17 (Ontario), and applicable federal and international frameworks governing electronic transactions. You waive any objection to the enforceability of this Agreement based solely on its formation by electronic means.

14. Severability

Should any provision of this Agreement be determined by a court or arbitrator of competent jurisdiction to be invalid, illegal, or unenforceable, such determination shall not affect the validity or enforceability of the remaining provisions. The invalid provision shall be modified to the minimum extent necessary to render it valid and enforceable, or, where modification is not possible, severed from this Agreement.

15. Entire Agreement

Together with the Terms of Service, the User Agreement, the Buyer Agreement, the Seller Agreement, the Privacy Policy, the Cookie Policy, and the Cross-Border Duties, Taxes & Customs Policy, this Agreement constitutes the entire agreement between you and AllStarBids with respect to the subject matter of settlement, commission collection, and post-auction payment procedures. No oral or written representation, warranty, or undertaking not contained or incorporated herein shall be binding upon either party. No waiver of any provision shall be effective unless in writing and signed by AllStarBids.

16. Contact Information

For any questions, concerns, or formal notices regarding this Agreement, please contact:

Email: support@allstarbids.com
Website: https://allstarbids.com.

17. Acknowledgment

By participating in any auction on the Platform, whether as a Buyer or a Seller, you confirm that you have read this Settlement Agreement and Policy in its entirety, that you understand all provisions contained herein, including the nature and mechanics of the 9.5% marketplace operations commission and the split-settlement model, and that you voluntarily agree to be bound by its terms. You further acknowledge that you have had the opportunity to seek independent legal advice prior to accepting this Agreement.