Reserve limits are a payment processor's way of protecting you from chargebacks. If you receive an unusually large payment compared to what you normally process, there may be a higher risk of a chargeback associated with that payment.
In order to set the right limit for you and your business, we need to get to know what a normal processing volume is for you. We learn this naturally over time as you process with us, but when you’re just getting started with us we have no information to base this on.
So to start, every new payments account has a $10,000 a week reserve limit.
If you invoice more than $10,000 per week, reach out to us over Live Chat in the Help section of Joist between 9am and 6pm EST, Monday to Friday to request a reserve limit increase.
Understanding how reserve limits work:
- If you receive payments within seven a seven day period that go over your limit, the payments that went over the limit would be held for 7 additional days to make sure the coast is clear from chargebacks
- Example 1: on a $10k limit, if you receive three payments of $4k each within seven days, the third payment of $4k would be held for 7 days while the first two would have processed normally
- Example 2: if you receive a single payment of $15k, that payment would be held for 7 days
Just remember, If you believe $10k a week is too low for your business, we can work with you to have that limit raised, which would result in your larger payments running smoothly with no 7 day hold.
To do so, just reach out to us over Live Chat in the Help section of Joist between 9am and 6pm EST, Monday to Friday, and we’ll be happy to get the ball rolling with you.