Refundable Rolling ReserveA rolling reserve (also known as a rollover reserve, refundable reserve, or contingency reserve) holds between 5-10% of total approved gross transactions. It is held in escrow for six months by DalPay's acquiring banks and then refunded to the account of the sponsored merchant or DalPay Retail supplier.
The rolling reserve is returned every week, 28 weeks after the reserve amount was taken, and is automatically included in the usual bank wire sent on the next settlement day.
(By way of comparison, when e-wallets such as PayPal or MoneyBookers are used in a merchant account role, a rolling reserve is usually required. For example PayPal requires a rolling reserve of between 5-20%, and new MoneyBookers sellers have a 100% reserve held for 40 days.
DalPay is not an e-wallet, instead providing direct merchant accounts, or a merchant account alternative. This means that customers do not have to register for a DalPay account to buy your products and services.)
Purpose of the Rolling ReserveThese funds are held by our acquiring banks to indemnify the acquiring bank and DalPay against chargebacks, and fines due to claims for non-delivery of goods or services, returns on pre-paid yearly fees, etc.
The funds held by the acquiring banks in the reserve will accrue no interest, or other earnings to the merchant, and are a security deposit against misuse, and allow DalPay and the acquiring bank to underwrite your account.
If you close your account or it is terminated by DalPay, the reserve is refunded 180 days from the date the account was terminated according to our sponsored merchant Terms and Conditions, or DalPay Retail Supplier Agreement (as applicable).
Factors that influence Reserve Levels
**Unlike many payment providers we will consider merchants and suppliers with a majority or all of their customers in high risk countries such as Belarus, Egypt, Ghana, Kosovo, Indonesia, Lebanon, Macedonia, Moldova, Montenegro, Morocco, Pakistan, Romania, Serbia, Ukraine and Viet Nam. Additional due diligence, reserve and security measures will apply.
Apply for an Internet merchant account today.
Last Updated: July 1st, 2010.
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