Reasons For Implementing An Account Level Reserve
You may be thinking, how did you find yourself on account level reserve? You are placed immediately on a different level of account reserve after you complete the registration process and start to transact.
Scam Cases
Control of Performance
Guarantee Claims
Chargebacks
If a seller’s account receives a chargeback from an order, the money from the purchase might be reserved in the account level reserve. The seller can only receive the money for the order until the issue raised by the customer is solved. Again, the dispute resolving process might take 14 days or more, depending on the argument presented by the buyer and seller.
Review of Account
Local Tax Requirements
Most new accounts are placed in Tier I with a 100% rate. This means that when they earn funds from their sales, they will be held in reserve for one to two weeks. If all the selling procedures are okay or lack claims, the funds are disbursed to the seller’s bank account.
Those sellers who have completed more than 100 orders, their accounts are upgraded to Tier II. The amounts collected from sales, 3% of it, are reserved if they have existing disputes. Sellers can decide to request their accounts to be moved to Tier II after six months of sales and if the defect rate is under 1%.
Avoiding An Account Reserve Level
How To Solve An Account Level Reserve?
Convince your suppliers into a long term payment plantHave a strong saving culture to get through this phaseGet an online or a bank loanIncrease your credit card limitSelect a payability instant access
