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Originally Posted by Hell Puppy
I dont know if they're still doing it this way or not, but most of the old contracts were written with 5% as a holdback that was to be returned 6 months later. This was their insurance against a site just suddenly shutting the doors and leaving them holding the bag on a bunch of chargebacks or whatever.
Some of the processors got creative with this a few years back taking large chunks of money owed as past holdbacks and turning it into a reserve and ceasing to holdback the 5%.
That's all well and good as long as your volume is consistent or perhaps increasing. But if you're someone like Ryan who during that time went from doing 7 figures down to being all but out of the paysite business, then they are probably sitting on a reserve that is total overkill for current volume levels.
I'd be curious to know if anyone has ever received any of their reserve back when they've ceased processing completely or even received a part of their reserve back to bring it more in line with current volumes.
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Epoch has been kind in releasing reserves to me over the years - I say this even after they just denied a reserve release this last week to me as I am down to them holding about 30X my weekly processing volume. I would of liked that to be at 3 months worth, which is pretty much what it has been at over the last few years as my volume decreased.
I was told others in my situation aren't as lucky and reserves are being released to them persuant to the contractual terms only, which is actually 18 months after the last transaction is processed - which is pure overkill. Also the terms of how my final chunk of reserves will be released to me.
I can't complain though, the last release about 2 years ago was $25K ... They basically have released about that much at a time every once in a while for years now... I tried to play pissed when I got the denial from this this week
But I knew it was coming before I even asked for it ...