Reserve

Setting up a Reserve helps make sure you always have enough funds for refunds, chargebacks, and other operational expenses.

When you refund a payment, for example, the funds are deducted from your in-process funds. If you have insufficient in-process funds to process the refund, the refund amount will be deducted from the Reserve. If you haven't set up a Reserve, or if the Reserve doesn't have enough funds for the refund either, the refund will fail.

An overview of all refunds that were not processed due to insufficient funds is available in the Modifications not Processed report.

Set up a reserve

To set up a Reserve, you need to have the following user role:

• Merchant financial

To set up a Reserve for a merchant account:

1. Log in to your Customer Area, and switch to the merchant account.
2. Go to Finance > Balances (Merchant).
3. Select Control your balances in the upper-right corner.
   This opens a pane where you can configure the Reserve.
4. Under Threshold, enter a minimum amount that you want to be available in the Reserve. The amount needed to fill the Reserve up to this value will be deducted from your Payable balance when the payout batch closes.

Watch this video to learn how to set up a reserve:

Get system messages about your Reserve

If you want to be notified when the Reserve balance drops below a certain value:

• Under Reserve balance, select System messages, and enter a percentage to configure this value.

If you enter 30, you will get a system message when the Reserve balance drops below 30% of the threshold value. For example, if the Reserve threshold is EUR 1200, you will get a system message when the Reserve balance drops below EUR 360.

Add funds to your Reserve

You have the following options to add funds to your Reserve:

• Increase the threshold: The amount needed to fill the Reserve will be deducted from the Payable balance.
• Set up auto-funding: The amount needed to fill the Reserve will be debited from your bank account.
• Top up your Adyen account: For payments made in EUR or USD, the funds are added to your Reserve on the same day. For most other currencies, the funds are added to your Reserve on the next day.
• Transfer balance from another merchant account: The amount needed to fill the Reserve will be transferred from your other merchant account that has more funds available.

Change the Reserve threshold

To change the Reserve threshold, you need to have the following user role:

• Merchant financial

To change the Reserve threshold for a merchant account:

1. Log in to your Customer Area, and switch to the merchant account.
2. Go to Finance > Balances (Merchant).
3. Select Control your balances in the top-right corner.
4. Under Threshold, select Change.
5. Enter the new threshold. If you:
   • Increase the threshold, the amount needed to fill the Reserve up to the new threshold will be deducted from your Payable balance when the payout batch closes.
   • Lower the threshold, the amount above the new threshold will be added to your Payable balance when the payout batch closes.

For example, if you start with a threshold of EUR 7000 and increase it to EUR 9000, we move EUR 2000 from the Payable to fill the Reserve. If you lower the threshold of EUR 7000 to EUR 4000, we move EUR 3000 from the Reserve to your Payable.

Set up auto-funding

With auto-funding, we initiate a direct debit payment when the Reserve balance drops below a configured value. The amount needed to fill the Reserve is debited from the bank account where you receive the payouts for this merchant account. You can only use auto-funding for payout bank accounts in EUR, GBP, or USD.

To set up auto-funding, you need to have both of the following user roles:

• Merchant financial
• Merchant admin

To set up auto-funding for a merchant account:

1. Log in to your Customer Area, and switch to the merchant account.
2. Go to Finance > Balances (Merchant).
3. Select Control your balances in the top-right corner.
4. Under Auto-funding, select Request.
5. In the Request auto-funding box, enter a percentage to configure the value that will trigger automatic funding.
   For example, if you enter 30 and the Reserve threshold is EUR 1200, automatic funding will trigger when 30% of the threshold has been used, which is when the Reserve balance drops below EUR 840. We will then initiate a direct debit payment to fill the Reserve up to the threshold value of EUR 1200.

Top up your Adyen account

This is the fastest way of transferring funds to your account is to generate a top-up payment.

For some currencies, for example ZAR, you need to use specific details for your bank transfer. We add the transferred funds to your Reserve as soon as we receive them. This can take up to four business days.

Any amount above the Reserve threshold will be transferred back to you with the next payout. When transferring funds to your Reserve, you might therefore need to adjust the Reserve threshold.

To generate a top-up payment, you need to have the following user role:

• Merchant financial

To transfer funds into your Adyen account:

1. Log in to your Customer Area, and switch to the merchant account.
2. Go to Finance > Balances (Merchant).
3. Select Control your balances in the top-right corner.
4. Under Reserve balance, select Top up.
5. Enter the amount that you want to add to the Reserve.
6. Select Generate payment details.
   This generates a Payment link.
7. Select the Payment link.
   This opens a new window where you can complete the payment with a payment method of your choice.

For payments made in EUR or USD, the funds are added to your Reserve on the same day. For most other currencies, the funds are added to your Reserve on the next day.

Transfer balance from another merchant account

You can transfer balance between two merchant accounts under the same company account and legal entity. For this to work, these two merchant accounts should have at least one common processing currency. This currency will be used to transfer balance.

To transfer balance, you need to have the following user role:

• Merchant financial

To transfer balance from one merchant account to another:

1. Log in to your Customer Area, and switch to the merchant account which you want to transfer the balances from.
2. Go to Finance > Balances (Merchant).
3. Select Control your balances in the top-right corner.
4. Under Reserve balance, select Transfer balance.
5. Under Transfer currency, select the currency you want to use for this transfer. For example, EUR.
6. Under Destination, select the merchant account to transfer the balance to.
7. Enter the amount you want to transfer.
8. Optional: Deselect Reconfigure reserve if necessary, if you don't want to change the configured Reserve threshold of the destination account.

9. Select Move.

   

The transfer begins immediately. However, it can take up to one hour for the funds to become visible on the target merchant account.

See also