If you are an Afterpay merchant experiencing payout holds, it is important to understand the underlying causes and how to resolve them. Here’s a detailed explanation:
Why Are Payouts on Hold?
Payout holds can occur for several reasons:
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Reserves or Risk Management
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Afterpay may retain a reserve as part of its risk management process. This reserve is a portion of your sales held temporarily to cover potential refunds, chargebacks, or disputes.
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Reserves are outlined in your merchant agreement, and the amount held depends on factors such as sales volume and refund rates.
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Learn more: How does a reserve work with settlements?
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Compliance Reviews
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Afterpay conducts periodic compliance checks to ensure all transactions align with its policies and regulatory requirements. Payouts may be held while these reviews are completed.
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Refunds or Negative Balances
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If recent refunds exceed your sales, a negative balance may occur. In such cases, payouts will be held or reduced until future transactions offset the negative amount.
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Bank Account Mismatch
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If the bank account details you provided do not match your registered business details or are located in a different country, this may result in a payout hold.
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Settlement Periods
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Settlement periods may vary based on your merchant agreement with us; this could be erroneously interpreted as a delay in payment. Please review your agreement details to confirm your settlement period.
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