eCheck.Net Reserve Statement

If your financial institution exhibits a higher than “normal” number of returns or chargebacks, Authorize.net may implement a reserve requirement. 

Reserves can take two forms:

1. Rolling Reserve 
   • With a rolling reserve, Authorize.net will take out a risk reserve rate (a specified percentage) on each transaction, and hold it for a specified number of days. 
   • After the number of holding days is up, Authorize.net will release the funds to your eCheck.Net settlement statement. 
   • Example: If you ran a $10.00 transaction on June 1st, and your reserve rate is 15%, Authorize.net would transfer $1.50 (15% of $) into your risk reserve statement. If your holding days is 90 days, we would release the $1.50 into your eCheck.Net settlement statement on September 1st. This is an ongoing process on your account.
2. Fixed Reserve 
   • With a fixed reserve you are given a reserve rate and a target amount. We will hold the reserve rate indefinitely until the account is closed or when the target amount is changed.

Determining Factors

A risk reserve is determined based on the following reasons:

• Amount of time the company has been in business.
• Amount of time the company has conducted business with Authorize.Net.
• The condition of the financial information provided.
• The condition of the personal guarantee provided.
• The type of industry the company is in.
• The company's transaction history with Authorize.Net.

Example

An example risk reserve statement is below: