What is a reserve, why do I have one, and how much is it?

A reserve is a temporary hold on a certain portion of a merchant’s transactions. The calculation of the reserve is carried out on a daily basis, before any Airwallex fees are deducted, and is implemented only after settlement.

Why is there a reserve on my account?

A reserve amount is a well-established practice in the industry of underwriting to safeguard the integrity and functionality of Payment Acceptance. The reserve amount serves to facilitate the smooth operation and mitigate any potential issues arising from the risks associated with online payments, including credit risk, refunds, and chargebacks.

What are the types of reserve?

Airwallex has two types of reserves that merchants can choose from:

  1. Rolling 30 day reserves: Take a percentage of a transaction for a 30 day period. (e.g. on a $100 transaction, $10 is held for 30 days and returned to the customer after 30 days). Note that the exact percentage and period will depend on a variety of risk based factors.
  2. Delayed settlement: Net transaction amount is held for a number of days before being settled with the merchant.

Can I remove the reserve? 

Airwallex consistently monitors the merchant risk level to assess the possibility of reducing or eliminating the reserve level. However, there are actions you can take to restrict a reserve, including:

  1. Submitting a financial report for the past two years (preferably audited) for both the onboarding entity and its parent company. This report should include the income statement, balance sheet, and cash flow statement.
  2. Providing a sample invoice or contract that outlines your refund policy.

How can I find out how much reserve is being held? 

Airwallex offers users full transparency and visibility regarding fees, as well as the reserves that are held or returned. To access this information, please go to your wallet and select a specific currency. Here, you will be able to view both the account balance and the reserved balance.

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