How is the Reserve by Zoho Payments amount determined?
Zoho Payments calculates your reserve amount by assessing the risks associated with your business. This includes factors like your business type, dispute rates, transaction volumes, and any recent potentially fraudulent activity. These factors also determine the reserve’s holding period.
Zoho Payments can set two types of reserves:
Flat Reserve: A portion of your balance will be held by Zoho Payments as a reserve.
Scenario: Let’s say you have $1000 dollars available in your account, Zoho Payments might set aside $100 as a reserve and release it at the end of the holding period.
Rolling Reserve: A percentage of each transaction is withheld by Zoho Payments.
Scenario: Let’s assume you receive a $1000 payment, Zoho Payments reserves 10% ($100) from it, and the remaining $900 will be released for payout, while steadily building up the reserve over time.
Zoho Payments will release the reserve once the holding period ends.
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