This page should help answer any questions you might have about the switch from a rolling to a fixed reserve.
What's the difference between a rolling and a fixed reserve?
A rolling reserve means that we hold a percentage of your funds (typically 5-10% of each transaction) in reserve, to cover things like chargebacks and refunds. We hold these funds in reserve for 26 weeks, after which we credit them back to you on a rolling basis. The reserve value is assessed on a daily basis.
A fixed reserve means that we hold a fixed amount of your funds in reserve for the duration of your contract with Checkout.com.
Why is my reserve being switched from rolling to fixed?
We are changing the way we hold your reserve from a rolling amount to a fixed reserve amount. This is part of a broader change in our policy, and to keep Checkout.com in line with the requirements of the French regulator, the French Prudential Supervision and Resolution Authority (ACPR).
How did you calculate the amount for the fixed reserve?
A rolling reserve gradually grows your reserved funds by deducting a percentage of the proceeds from each settlement, which is held for a period of 26 weeks or as agreed otherwise. The transaction volume over six months would typically accumulate the right amount of reserves as per the agreed rolling reserve rate.
Because we have to switch to a fixed reserve amount before the end of the rolling period, we have calculated the value of reserve that would have been accumulated based on expected transaction volume.
How long do you hold the fixed reserve amount for?
The fixed reserve amount will be held for the duration of your contract with Checkout.com. If your contract with Checkout.com is terminated, we will hold the fixed reserve amount for a period of 26 weeks after termination.
How often will you review the fixed reserve amount?
Your fixed reserve amount is subject to increase or decrease depending on the volume of transactions you process, your financial health, the number of refunds and chargebacks, and any other factors that affect your risk profile.
Is my fixed reserve safeguarded?
Yes, your fixed reserve is safeguarded.