Rates, reserves and settlement
What high-risk processing costs, what gets held back, and when you get paid.
- What does high-risk processing cost? Typically 3.5% to 6.5% plus around $0.20 to $0.35 per transaction, with setup somewhere between $250 and $1,500. Your category, volume and processing history move that range far more than negotiation does.
- How long is a rolling reserve held? Typically 5% to 10% of processing volume held for 90 to 180 days, released on a rolling basis as each tranche matures. It is your money, delayed rather than taken, but it is not available when you need it.
- When do I actually get paid? Weekly is the high-risk norm, moving to daily once you have history and occasionally monthly for a new account in a difficult category. Whatever the frequency, the reserve is deducted before the payout reaches you.
- Why is there a setup fee? It covers the underwriting work on your file and, in categories requiring card scheme registration, real fees the acquirer has to pay. It is worth asking what it is for, because the answer distinguishes a cost from a margin.
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