Reserve
What's a reserve?
The reserve fund is there to safeguard your FlexFactor account against potential chargebacks and refunds that may occur within each payout period. It is a precautionary measure, ensuring that you're prepared for any unexpected bumps along the road.
How Does It Work?
When calculating your monthly payout, FlexFactor subtracts a portion for the reserve fund. This amount is set aside to cover any chargebacks or refunds that might arise from orders made during that period. However, if no such issues occur, the full reserve amount is released back to you in the following month, providing you with additional funds for your business endeavors.
| Dispute rate (%) | Reserve |
|---|---|
| <1% | No reserve |
| >1% - <4% | 10% Reserve for 60 days |
| >4% - <6% | 15% Reserve for 60 days |
| >6% - <10% | 25% Reserve for 60 days |
| >10% | this is above our acceptable dispute thresholds |
Updated 4 days ago
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