To overcome the barrier of a large cash deposit, some of
our accounts include a reserve. The rolling reserve holds
either 5 or 10 % of total approved transactions over the
previous six month period.
Why do we do this? Many banks require
a non-interest-bearing deposit equal to 1 or 2 times the
average estimated monthly credit card sales by a merchant.
This can pose a substantial barrier to accepting credit
cards for some merchants. The purpose of this deposit is
to cover any purchase refused by a customer and for which
the customer's credit card issuer refuses to pay (a chargeback).
How does it work? Following the seventh
month of operation (and every month thereafter) the reserves
generated from the first month of operation (and every month
thereafter) will be forwarded to the merchant of each sale
for a specified period, after which time it is paid to you.
Please read 'What is a chargeback
and how do I avoid them?'