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Principle of guarantee

CentralPay owns 3 types of protection guarantees that may apply to merchants, depending on the nature of their contract :

 

Collateral

A fixed sum is paid at the start of the contract in order to cover the credit risk in case the merchant cannot meet his repayment obligations towards his customers.

The detail of the Collateral (deposit sum) is visible from the API protected account area, in the "Payments" tab :

The deposits must expire after 30 days.

Bottom line

In the absence of Collateral, a fixed sum can be taken directly from transactions to guarantee reimbursement to customers if necessary. Therefore, the wallet must exceed the value of the bottom line to authorize outgoing transfers.

The detail of the bottom line (fixed threshold amount) is visible from the API protected account area, in the "Payments" tab :

 

Rolling reserve

Depending on the industry and the account settlement process, a rolling reserve may be automatically opened. This is an additional protection guarantee which makes possible to maintain between 5 and 10% of the merchant collection volume on the CentralPay account in order to allow the automatic refunds in case of chargebacks, fraud or in order to cover any operational costs. This sum belongs to the merchant's treasury ; it is kept for a certain number of days to be released (between 90 to 180 days).
 

For example, the variable threshold amount of the rolling reserve is 5% of the volume received over 90 days. The daily calculation of the reserve amount is : amount of transactions received during the last 90 days * 5%

 

 

The amount of the rolling reserve is visible from the general view of the CentralPay account :

 

 

This variable threshold amount is also visible from the API protected account area, in the "Payments" tab :