To reduce the credit risk most payment processors will certainly implement moderate to strict settlement controls. If you are already processing payments for skill gaming and competition business and volume is over few 100K Euros per month then you may negotiate. If not then you may not have any choice then to accept the following terms.
- A rolling reserve of 5% to 10%. This percentage will be deducted on each successful transaction.
- The processor may fix a day for settlement. This means you dont get T+1 or T+2 Settlements. You will only get paid once a week
- To further reduce credit risk the PSP will also implement an arrears. In most cases it is up-to 7 days. In case of a merchant were risk is elevated then the arrears may also be up-to 14 days.
- The processor may also fix a minimum settlement amount. If the accumulated amount does not hit equal to the limit then settlement may happen the next week.
The above terms are the strictest. It does not mean that you will get the same terms. On a case by case basis our processing partners evaluate applications. If your profile is good you can get fast settlements and low reserves.