[outhustleu]

(11-07-2013 02:43 PM)worldwidetraveler Wrote:  

Most merchant accounts will have reserves, especially for high risk markets.

They will take hold 10% per day and release that 10% after 91 days. How are you getting 25%? They may also have a minimum reserve amount where they hold a certain amount of money regardless of your transactions but it looks like that 10% will probably be enough to reach that minimum.

So, if you are doing 200k for 60 days that would be about 3333k a day. 10% of 3333k a day would be 333 a day in reserves or roughly 30k in reserves for 90 days before you start getting day one released. Roughly 30k in reserves if you continue doing 3333k a day.

Minimum just means they want at least a certain amount in reserves at all time. If the 10% gets you there then no problems. If not, the minimum will always be in reserves regardless of the daily transactions. It sounds like they want at least 10k in your reserves at all time no matter the amount of transactions per day.

Yeah I've read about others who Paypal told them they wanted 30K in reserves and could take say 5k or 10k off the top and then a percentage until that 30k is built up. In my situation however they are taking 10k off the top, they said they will release that in a month or so if all is good with my account but they will still hold the 25k for 90 days, on the 91st day the first day of holds gets released, 92nd day the second day of holds released, etc.

To me the 10k is the least of my problems, it's the 25% thats killing me. I guess after 6 months they will re-evaluate and maybe lower that percentage. They havn't said to what but I think 15% is going to be about as low as htey ever go regardless of if I have no chargebacks, no refunds, no complaints, etc.

I'm looking into merchant accounts but almost nobody allows my category of sales. Just found one company who apparently does high risk merchant services. Gonna call them back later but guessing fees are gonna be pretty stiff. As long as they don't have reserves or they are reasonably I figure I can try to to maybe 80k of my monthly business away from Paypal and have access to a little more cash.