Merchant/payment processing reserve amount

[LinkBright Media]

I'm using Moneybookers to accept payments and they retain 3% of my turnover for 1 month as a 'reserve', which covers them for possible chargebacks and refunds. Moneybookers are practically the same as PayPal - you don't need a separate merchant account + payment processing service. This is a bundled service.

The value of my reserve is steadily growing and I'm wondering if this is the norm? I have had only 1 single chargeback in 18 months of trading so my business is hardly high risk

 

[TotalWebSolutions]

Usually the retainer will be for the first 12 months as a security measure if you are a new customer. I would say after 18 months of trading you should be able to revisit this and get the contract reviewed, especially due to you only having one chargeback against you during this period.

As you have built up transactions and trading history then you could also now consider going down the Internet Merchant Account route. If you decide to do this we can help and can provide you with one of the lowest priced PCI level 1 accredited payment gateways in the UK.

If you would like to find out more drop me a PM or click the link in my signature.

Thanks,

Simon

 

[superhans]

We have a 100% retainer for 30 days with BMS. I must say I think I better make a call. We only had 3 chargebacks in the last year.

 

[LinkBright Media]

Thanks Simon, just sent a PM