We withhold funds when you are refunding a customer, or when a dispute has been reported to us.
Because there might not be enough money in your balance when refunding a customer, our funds are used to process all refunds.
We withhold the same amount you refunded from your Pin Payments balance to recover these funds. The amount withheld is taken from the first transfer you receive after you processed the refund.
For example, say you've refunded a customer $200 and have an upcoming transfer for $750, we will withhold $200 from the upcoming transfer, and you will receive $550 in your bank account.
When a payment dispute is reported to us, we withhold funds from your account balance equalling the amount disputed plus a dispute fee of $25. Just like with refunds, the amount withheld is taken from the first transfer you receive after a dispute is reported.
For example, say a charge of $70 is disputed and you have an upcoming transfer for $300. We will withhold $95, which includes a $25 dispute fee, and you will receive $205 in your bank account. If the dispute is resolved in your favour, the $95 will be released back into your balance. If the dispute is ruled against you, the refund is made to the customer and the fee is taken by the banking system.