Payout & Reserve fund Policy

Payouts

Payouts are how money from your customers gets deposited into your bank account. Depending on your business location and payout schedule, funds from your transactions will be paid out to your bank account on a rolling basis.

Payout availability can vary based on the industry and country you’re operating in. In most cases, when you start processing live payments from your customers with PayCEC, you will receive your payout on the 5th or 20th of the month, depending on your Transaction Date. The first payout may take longer for a number of reasons, including your country or being in a high-risk industry. Processing subsequent payouts then happens according to your account’s payout schedule.

Adding your bank account information

Based on your bank’s location, PayCEC may require varying types of account details to activate your bank account.

SUPPORTED BANK ACCOUNT TYPES

You can use a traditional bank account with a financial institution (for example, checking) or other types of accounts (for example, savings) as your PayCEC payout account.

Holds, limitations and reserves

Under certain circumstances, in order to protect PayCEC and the security and integrity of the network of buyers and sellers that use the PayCEC services, PayCEC may take account-level or transaction-level actions. Unless otherwise noted, if we take any of the actions described here, we'll provide you with notice of our actions, but we retain the sole discretion to take these actions.

Our decision about holds, limitations and reserves may be based on confidential criteria that are essential to our management of risk and the protection of PayCEC, our customers and/or service providers. We may use proprietary fraud and risk modeling when assessing the risk associated with your PayCEC account. In addition, we may be restricted by regulation or a governmental authority from disclosing certain information to you about such decisions. We have no obligation to disclose the details of our risk management or security procedures to you.

1. Holds

A hold is an action that PayCEC may take under certain circumstances either at the transaction level or the account level. When PayCEC places a temporary hold on a payment, the funds shall not be available to either the sender or the recipient. PayCEC reviews many factors before placing a hold on a payment, including: account tenure, transaction activity, business type, past customer disputes, and overall customer satisfaction. Some common situations where PayCEC will hold payments include:

1. New sellers or sellers who have limited selling activity.
2. Payments for higher-risk categories like electronics or tickets.
3. Sellers who have performance issues, or a high rate of buyer dissatisfaction or disputes.

2. Account Limitations

Limitations prevent you from completing certain actions with your PayCEC account, such as withdrawing, sending or receiving payments. These limitations are implemented to help protect PayCEC , buyers and sellers when we notice restricted activities, an increased financial risk, or activity that appears to us as unusual or suspicious. Limitations also help us collect information necessary for keeping your PayCEC account open.

There are several reasons why we may limit your access to your PayCEC account or the PayCEC services, and/or limit access to your funds, including:

1. If we suspect someone could be using your PayCEC account without your knowledge, we'll limit it for your protection and look into the fraudulent activity.
2. If your debit or credit card issuer alerts us that someone has used your card without your permission. Similarly, if your bank lets us know that there have been unauthorized transfers between your PayCEC account and your bank account.
3. In order to comply with applicable law, If we reasonably believe you have breached this agreement or violated the Acceptable Use Policy.
4. Seller performance indicating your PayCEC account is high risk. Examples include: indications of poor selling performance because you've received an unusually high number of claims and chargebacks selling

If we limit access to your PayCEC account, we'll provide you with notice of our actions and the opportunity to request restoration of access if, in our sole discretion, we deem it appropriate.

You will need to resolve any issues with your account before a limitation can be removed. Normally, this is done after you provide us with the information we request. However, if we reasonably believe a risk still exists after you have provided us that information, we may take action to protect PayCEC, our users, a third party, or you from reversals, fees, fines, penalties, legal and/or regulatory risks and any other liability.

3. Reserves

We may place a reserve on your PayCEC account if we believe there may be a high level of risk associated with you, your PayCEC account, your business model, or your transactions. When we place a reserve on your PayCEC account, it means that all or some of the transactions will be shown as "pending" in your PayCEC balance, and you will not be able to withdraw funds in a "pending" status, in order to protect against the risk of transactions made by you being reversed or invalidated or any other risk related to your PayCEC account or use of the PayCEC services. We make decisions about whether to place a reserve based on a number of factors, including information available to us from both internal sources and from third parties.

PayCEC considers a list of non-exclusive factors, and whether and how these factors have changed over time, including:

• How long you have been in business.
• Whether your industry has a higher likelihood of chargebacks.
• Your payment processing history with PayCEC and other providers.
• Your business and/or personal credit history.
• Your delivery time frames.
• Whether you have a higher than average number of returns, chargebacks, claims or disputes.

If we place a reserve of funds in your account, we'll notify you of our actions and the terms of the reserve. There are two types of reserves that may be placed on your PayCEC account, and one or both may be applied at the same time:

1. A Rolling reserve is a reserve where a percentage of each transaction you receive each day is held and then released later on a scheduled basis. For example, your reserve could be set at 10% and held for a 90-day rolling period – meaning 10% of the funds you receive on day 1 are held and then released on day 91, 10% of the funds you receive on day 2 are held until day 92, etc. Rolling reserves are the most common type of reserve.
2. A Minimum reserve is a specific minimum amount that you're required to keep available in your PayCEC balance at all times. The minimum reserve is either taken as an upfront amount deposited all at once or is established on a rolling basis from percentages of sales until the minimum reserve is achieved, much like a rolling reserve.

If we change the terms of the reserve due to a change in our risk assessment, we'll notify you of the new terms.

Delayed or missing payouts

If a payout hasn’t arrived according to its expected delivery date, there can be several reasons as to why. Please check both your dashboard or email to see if we requested additional information from you to complete this process.

1. Payout date keeps getting changed and postponed

If your payout date keeps getting pushed out to a future date, this is most likely due to outstanding account verification requirements required from the owner of the PayCEC account. In order to resume processing payouts, the owner of the PayCEC account should check both the dashboard or email to see if we requested additional information.

Payout taking longer than expected to be paid

• Your first payout may take longer than usual, depending on your business industry. Normally, payouts will be transferred to your bank account on the 5th or 20th of each month, depending on your Transaction Date. However, your first payout may deviate from your normal payout schedule and will arrive in your bank account after the waiting period has been satisfied.
• Understanding your payout schedule. Several elements influence when your charges will be deposited (paid out) into your bank account.
• Minimum payout amounts for certain currencies. Certain currencies have a minimum payout amount that your available account balance needs to exceed before a payout can be initiated.
• Payout speed is too slow. Payouts are deposited following your payout schedule. This schedule cannot be sped up by PayCEC.

2. Payout paused due to pending negative balance withdrawal

If you have a negative balance and PayCEC has initiated a withdrawal to bring your account back to positive, your upcoming payouts might be paused to allow time for the withdrawal to be completed. If your payouts are delayed for this reason, you will receive a notification email about this issue.

Handling negative balances in your PayCEC account

Your available PayCEC balance may go into the negative if the cost of refunds, disputes or PayCEC fees is greater than the existing balance. If your account inherits a negative balance, your account will not be able to send out refunds until the negative balance is resolved. For more details, see below:

• Adding funds to PayCEC: PayCEC will send an email notification to guide you through this process, including all the information that you need to add funds to PayCEC.

3. Payout failures

If your bank account can’t receive a payout for any reason, your bank will send the funds back to us. It can take up to 5 additional business days for your bank to return the payout and inform us that it failed. If this happens, you’re notified by email. To ensure that your bank account details are correct, you need to re-confirm them if a payout fails. After you re-confirm your bank account details, PayCEC will attempt to perform the payout again at the next scheduled payout interval.

Make sure that the bank account information you provide is correct because PayCEC sends the funds using the account information you enter. Therefore, if you provide incorrect information (for example, a mistyped account number or an incorrect routing number), PayCEC might send payouts to the wrong bank account and might not be able to recover the funds. Additionally, you’re responsible for any fees or losses that you incur because of incorrect information. If you’re certain that your banking details are correct and the payout has failed for other reasons, please contact your bank. If you’ve contacted your bank to resolve any issues on their end, you can resume payouts by informing the PayCEC Customer Support Team.