Reserve plan
What is a reserve plan?
We establish a reserve on a case by case basis to help you manage future refunds or disputes from your customers. A reserve is necessary to help you manage your obligations and introduce a better shopping experience to your customers. Overall, a reserve is an amount which is withheld for a period of time after a transaction has been made.
The level of the reserve is based on a range of different factors informed by our knowledge and experience across different industries and markets. This includes your actual business performance and trends. Your reserve plan may change as we monitor your business performance to ensure Airwallex is able to provide you with the best experience possible.
What are the different types of reserves Airwallex offers?
Airwallex currently offers the following types of reserves:
Delayed settlement
The full amount of each transaction will be settled to your account on a fixed number of days after the transaction takes place.
Example: 5 days delay:
On day 0, your customer places an order for $100. The $100 is held in your reserve account with Airwallex
On day 5, the funds are released to your account for use
Rolling reserve
A percentage of the transaction amount is held for a fixed period of time.
Example: 10% of funds held for 30 days:
On day 0, your customer places an order for $100. $10 (10%) is held in your reserve account with Airwallex
Once the funds are settled by the payment method provider (usually on day 2 or day 3) then you will receive $90 immediately for use.
30 days after the settlement date (usually 32 to 33 days from the order being placed) you will receive the remaining $10.
Mixed reserve
A combination of delay and rolling reserve plans. All funds will be held for a fixed period of time and a percentage of funds will be held for additional days after transaction
Example: 90% of funds held for 10 days and the remaining 10% of funds will be held for additional 30 days
On day 0, your customer places an order for $100. The $100 is held in your reserve account with Airwallex
On day 10, 90% of the funds are released to your account for use
On day 40, you will receive the remaining $10.
In addition to the reserve types mentioned above, Airwallex may also impose a fixed reserve—a set amount of funds withheld—if there is a significant change in your credit risk exposure.
Where do I view the details of my reserve?
You can view the details of your current reserve plan at any time through the "Settings" tab in the Payments section of your Airwallex account.