Holding period

2017-01-08    5172   Glossary

Please note:
We have no fixed settlement cycle for merchants.It means merchants can withdraw money anytime if there is available balance in their account which should reach the minimal withdrawal amount limit.


For those transactions processed successfully through the payment gateway,merchants can check them at merchant dashboard easily,but they can not withdraw the funds to their bank account due to holding period rules.In general, the holding period ranges from 7 days to 30 days depending on the merchants' business type,monthl volume,chargeback ratio and so on. It means the amount due will stay silence in your merchant account for some days.


For example,let's say it's 2017-01-08 today.

1)If the holding period is set to 0 day,it follows as the following rules:

Transactions placed on:          Net amount released on:

2017-01-08                              2017-01-09
2017-01-09                              2017-01-10
2017-01-10                              2017-01-11
2017-01-11                              2017-01-12
2017-01-12                              2017-01-13
...


2)If the holding period is set to 20 days, it follows as the following rules:

Transactions placed on:          Net amount released on:

2017-01-08                              2017-01-29
2017-01-09                              2017-01-30
2017-01-10                              2017-01-31
2017-01-11                              2017-02-01
2017-01-12                              2017-02-02
...

(Net amount will be released to availble balance, then merchants can withdraw the money manually by using payment passpword.)

The above example shows a simple way to calculate merchant's available balance but the real case could be a little complicated,because if there are chargebacks,refunds or pre-disputes, the amount and fee will be deducted directly from merchant's available balance soon, then you even will see a negative amount of available balance.

With the method of circulation settlement, merchants can be settled by daily utmost to get cash flow quickly.

To prevent the risk from high risk business,we usually will set a relatively long holding period for those merchants who have no processing history or who have pretty high chargeback ratio and low volume.But this is not fixed,merchants who have been processing with us more than 3 months with good volume and low chargeback rate can apply for a short holding period,and also a low buy rate and chargeback fee.