Holds and rollings: a complete guide from BetaTransfer Kassa

Everyone who deals with payments is familiar with such concepts as “holds” and “rollings”. But not everyone fully understands what exactly they are and what significance they have for business’ finances. Yet, the topic is important, especially for high-risk merchants. Let’s delve in the details with the help of a guide from BetaTransfer Kassa.

Holds

A hold is a freezing of the entire amount of a transaction for a certain period – from one day to two weeks (about three days on average). This is done to secure, first of all, the end client and quickly return the money to them if something goes wrong with the transaction – for example, the desired product is not in stock.

In words, it’s good, but in fact, holds sometimes greatly interfere with the work of the other side – merchants. For example, the buyer can request a refund even if everything is in order with the goods, and according to the “customer is always right” rule, in most cases, the funds will first be returned, and then the investigation, if any at all, will happen. In addition, a business owner may rely on certain funds in the account (for example, to pay contractors on time), but will not be able to access them due to a hold.

Betatransfer Kassa is aware of such nuances, and therefore does not use holdings, except in certain cases, which depend on the requirements of the bank and geo of operations. Even in such situations, the hold does not exceed 24-48 hours. In our standard practice, work is carried out without freezing funds on accounts and any restrictions on withdrawals.

Rollings

Rolling is a partial freezing of a transaction, usually from 5 to 10%, for a period of 30 to 180 days with a possible extension at the request of the payment system (for example, during the chargeback investigation).

The main task of rolling is to be a chargeback safeguard. That is why they carry a high risk for high-risk businesses, which often face requests for a refund. The problem builds up gradually: one or two rollings don’t seem like a big deal, but if their number rises sharply, a high-risk merchant’s account may be completely blocked.

Realizing this, we have a very flexible approach to rollings. Each case is individual and takes into account not only the category of business, but also the requirements of the bank and the country in which the business is conducted. Often we do not assign rolling at all.