If you are an Afterpay merchant experiencing payout holds, it is important to understand the underlying causes and how to resolve them. Here’s a detailed explanation:

Why Are Payouts on Hold?

Payout holds can occur for several reasons:

• Reserves or Risk Management

  • Afterpay may retain a reserve as part of its risk management process. This reserve is a portion of your sales held temporarily to cover potential refunds, chargebacks, or disputes.

  • Reserves are outlined in your merchant agreement, and the amount held depends on factors such as sales volume and refund rates.

  • Learn more: How does a reserve work with settlements?
    

• Compliance Reviews

  • Afterpay conducts periodic compliance checks to ensure all transactions align with its policies and regulatory requirements. Payouts may be held while these reviews are completed.
    

• Refunds or Negative Balances

  • If recent refunds exceed your sales, a negative balance may occur. In such cases, payouts will be held or reduced until future transactions offset the negative amount.
    

• Bank Account Mismatch

  • If the bank account details you provided do not match your registered business details or are located in a different country, this may result in a payout hold.
    

• Settlement Periods

  • Settlement periods may vary based on your merchant agreement with us; this could be erroneously interpreted as a delay in payment. Please review your agreement details to confirm your settlement period.