🔸What is a Paynode merchant reserve?

A Paynode merchant reserve are funds that are set aside by the member and held by Paynode to act as security for members who expect to process credit card volumes greater than 200,000 USD per month (2.4million annually).


🔸Why are Paynode Merchant reserves needed?

Our industry is deemed to be high risk by credit card schemes and with that any transaction carries an elevated risk for a chargeback. By establishing a reserve we help to ensure that funds are available to cover any future refunds or disputes in the event a Paynode merchant is unable to cover the cost themselves.

🔸How much of a reserve do I need?

Paynode Merchants with estimated volumes of less than 200,000 USD over any 30 day period do not require any funds to be kept in reserve - this means for the majority of Paynode merchant's no reserve funds are required to be kept.

For Paynode Merchants who exceed 200,000 USD in credit card volume over any 30 day period Paynode would require a minimum of 10,000 USD to be put aside and held in a reserve account. The minimum reserve balance of 10,000 USD would allow the member to transact in monthly volumes up to 400,000 USD. There would be an additional requirement of 10K for every additional 200,000 USD in monthly credit card volume.

For example, if a Paynode merchant expects to do up to 600K in credit card volume over a 30 day period, they would need to have 20K set aside in their reserve account. In order to transact over this limit (and up to 800K) an additional 10K would be to be added to the reserve.

If members do not estimate a volume of more than 200K in a 30 day period there is no need for any reserve, however as volumes start to increase and members approach the reserve-free threshold of 200K it may be a good idea to start thinking about putting some funds into reserve so you can continue to transact past the 200K threshold without any disruptions. If you do not have any funds in reserve and start approaching the 200K in volume a member of the Paynode team will reach out to discuss the options available.

🔸When can I access funds that are held in reserve?

We understand that access to funds is important to our members. As such Paynode will make funds in reserve available to the member as soon as we deem the risk of any potential chargebacks has sufficiently passed. In most cases this would be 90 calendar days after the members volume has reduced below the reserve threshold.

Other questions?

If you have any questions on reserves or would like to proceed with an increased volume limit, please contact support@paynode.com reserve threshold.

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