Yes, 2CO holds a reserve for chargebacks, and refunds in event the account goes out of business, becomes unreachable or simply terminates their relationship with 2CO without notice.

For all accounts, the reserve begins at 5% of gross sales within the payment period. The reserve amount is held for 90 days, then released.

Reserve Example ( 5% Reserve Level, 90 day hold ):

June 1st payment cycle
———————–
$120 in sales
$20 in refunds from sales in this payment period
$10 in refunds from sales in a previous payment period

The reserve held would be $6 or ( $120 * 5% ).

Under this example, the $6 would be released to you on the August 31st payment cycle.

The reserve level can be increased based upon individual account experience. Any potential increase is always discussed with the account holder in order to ascertain whether the situation can be rectified in another manner.