Explanation:
If you are a Cash App 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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Cash App 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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Compliance Reviews
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Cash App 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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Action:
Please follow the below steps:
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Check Your Reserve Balance
- Log in to the Cash App Afterpay Merchant business hub to review your reserve balance and payout status.
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Verify Compliance
- Ensure all transactions comply with Cash App Afterpay’s guidelines. If you’re undergoing a compliance review, provide any requested documentation promptly.
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Update Bank Account Details
- Confirm your bank account matches the registered business country and details. Update them in the Merchant business hub if needed.
Important Notes:
Monitoring your Cash App Afterpay Merchant Business Hub regularly is vital to identifying potential issues early. Ensure your business details, bank account information, and transaction history are accurate and up-to-date to resolve compliance reviews or discrepancies efficiently. Staying proactive by updating your Cash App Afterpay integration and guiding customers through eligibility checks can help prevent checkout errors.
Understanding Cash App Afterpay’s policies, such as reserves and payout schedules, is essential to managing your account effectively. Be aware of potential delays caused by bank processing times or flagged transactions.