What are reserves?
Learn more about reserves. Select a question to see its answer:
- What is a reserve?
- How do I know if I have a reserve?
- How can I see the status of my funds on hold?
- How is my reserve policy determined?
- How do I know if my reserve policy has changed?
- What happens if my reserve policy is disabled?
- How can I view my payout reports?
- How can I avoid/prevent reserves?
What is a reserve?
A reserve is when a percentage of each transaction is placed on a temporary hold to cover against any potential chargebacks or refunds. After a reserve policy is enabled, a percentage of each unpaid and future transaction will be held for a specific period of time.
For example, your reserve could be set at 5% for 7 days.
This means that:
- On Day 1: 5% of the money you receive (less transaction fees) will be held and then released on day 8
- On Day 2: 5% of the money you receive (less transaction fees) will be held and then released on day 9
- On Day 3: 5% of the money you receive (less transaction fees) will be held and then released on day 10, etc. This will continue until the reserve policy is removed.
When the held funds are released, they are added to that day’s payouts.
Reserves do not affect your ability to continue processing payments with us.
How do I know if I have a reserve?
You will receive an email from GoDaddy Payments if a reserve has been added to your account. The details of the reserve will be included in the email and also visible on your Dashboard in the Payouts section.
How can I see the status of my funds on hold?
To see specific details about your reserve:
- Go to the Dashboard where you manage your Payments account (use your GoDaddy username and password).
- Select Payouts, then Balance. Under Funds on Hold, you can see details about the transactions on hold, including:
- Expected Release Date: The estimated date the money will be released.
- Release Amount: The total amount expected to be released, along with the number of transactions.
How is my reserve policy determined?
Reserve policies are determined on a case-by-case basis. GoDaddy Payments considers multiple factors when applying reserves, such as industry type, chargeback and refund rates, transaction activity, financial health, and other factors.
How do I know if my reserve policy has changed?
The reserve percentage and reserve period may change throughout your time with GoDaddy. If a change occurs, we will send you an email with the details. Your Dashboard will also reflect this with a yellow note.
When your reserve policy is changed, past transactions will adhere to the previous reserve policy. All transactions moving forward will have the new policy applied.
What happens if my reserve policy is disabled?
If your reserve policy is disabled, you will get an email from us with the details. In addition, any currently held funds will be immediately released to your available balance and paid out during your next scheduled payout.
How can I view my payout reports?
Learn more about how to view your payout reports.
How can I avoid/prevent reserves?
There are different reasons reserves may be applied and not all of them are under your control. However, there are some best practices that you can follow, which may help prevent future reserves.
- Build up a history of positive payment transactions. Establish yourself as a merchant in good standing by fulfilling your orders and obligations as advertised.
- Work with your customers to resolve issues. If multiple customers file chargebacks with your company, it can delay availability of your funds. The best way to avoid this is to follow up with customers and resolve issues before they result in a chargeback.
- Keep your business in good health. All accounts are monitored for policy compliance. If your company engages in unusual, suspicious or risk-exposing activity, or if you begin selling prohibited products or services, related transactions in your GoDaddy Payments account will likely be placed on hold for additional review. For more information, please review the Commerce Services Agreement, Section 9.