Copy/paste what it says:
Based on a review of your account, we've decided that reserves will be applied as follows:
- Rolling Reserve: 20% of the funds you receive each day will be held for 45 days in your 'pending balance' and will be added to your 'available balance' for your use or withdrawal after this period has elapsed. This process will continue on a daily basis. This rolling reserve will be eligible for review 180 days from the date of this email.
- Collateral Reserve: The collateral reserve amount of: $ x USD has been applied temporarily to your account. This amount will be eligible for review if the above reserve will build up the amount of $ x .
I'm a dropshipper. Basically, I believe I got it because of my chargebacks that have reached more than 1%
Ok so a rolling reserve is as said 20% of all funds held and released after 45 days.
However, there is also a collateral, which is the MINIMUM reserve.
Say you have a 4k collateral reserve.
Youre sales are 10k monthly.
So the rolling reserve will be 2k/month, and released after 45 days, however the next month you have another 2k (4k total now). 15 days into the new month you expect the previous 2k to be released, however since the collateral is 4k, noting will be released if it brings the collateral below 4k, so now 4k is your threshold.
The collateral reserve exists in case you have low sales volume, so that you are not able to cash out to 0 balance or similar every 45 days (remember the dispute period is 120 days so they still have risk after 45 days)
After 180 days you will be reviewed and if your chargebacks are lower, they will likely reduce each reserve,
What do you sell and what kind of volume? Country based? Your main problem isnt sales but cash flow I assume tied up in the reserve. What kind of margin is your product producing?
Ill be on for a while im high on closing a sale lol so lets chat and see what can be done. Changing processors is easiest but may not be available to you? Next we can look at how your business is set up or how to set it up to solve cash flow problems.