Reserve Fees
Applying for a merchant account will need you to be familiar with the different fees that you’ll be dealing with, one of them, reserve fees. A business considered risky or a less-than-average credit may be approved for a merchant account with a reserve. A reserve fee is a small percentage of the merchant’s total sales volume which the merchant bank holds in escrow for at least half a year or until the merchant shows good processing history. The reserve is then lifted and deposited to the merchant’s checking account. Reserve fees are not permanent but are merely intended to secure the merchant bank or account provider’s interest as the merchant starts to accept credit cards for a business considered risky.
