CASE STUDY 1

Our client from the United States has approached us with a request to lift a reserve placed on his payment account. Reserves are money placed on hold by payment processors that allegedly help them to cover potential fiscal risks, such as chargebacks and disputes. 

We asked the client to provide us with a proper authorization and drafted a legal letter on behalf of the client. Afterwards, we sent the letter, together with the authorization, directly to the legal department of the payment processor. 

The payment processor received our letter, conducted a review of our client’s account, and released the funds which amounted to more than USD 50,000. 

The main lesson learned from this case study is that reserves are not permanent and can be reduced or completely removed if the relevant payment processor is persuaded that they are no longer needed. This applies to all kinds of reserves, irrespective of whether they are rolling reserves, mini