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The issue is their distribution network payments, which quite frankly, are identical to what you'd find if you had a traditional publisher.  Authors with a trad publisher get paid quarterly, with a 3-6 month delay between when a book is sold and when the bookstore pays the publisher (which then pays the author).  Barnes and Noble has paid Smashwords through Feb. 23.  It has reported sales through May 15, but won't actually pay Smashwords until June 30th, for books sold Jan.23-April 23.  Same with Apple, Sony, etc. 

It is an antiquated system, but that is not Smashwords' doing.  It is the way Barnes and Noble pays all its publishers.  Harper Collins is getting paid quarterly exactly the same way. 
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