Why We Reserve Funds
Premium.Chat is vigilant in safeguarding the financial stability of our platform to ensure consistent payouts to our sellers. Part of this vigilance includes the “Reserving Funds” policy, applied to transactions identified as high-risk with a greater probability of evolving into a chargeback.
Our Proactive Fraud Prevention
Premium.Chat takes a proactive stance against fraud with proprietary detection and prevention systems. These tools:
- Analyze Transactions: Spot suspicious patterns in real time.
- Authenticate Identities: Confirm the legitimacy of the cardholder during the transaction.
- Implement Security Measures: Use encryption and secure protocols to safeguard data.
The Process of Reserving Funds
When a transaction is flagged as high-risk:
- Reservation of Payment: The amount is secured in our reserve fund, acting as a protective buffer against potential chargebacks.
- Duration of Reservation: The reserved amount is held without a predetermined release date. Although we do not set a specific timeframe for the release of these funds, it could be held for up to 180 days.
Releasing Reserved Funds to Sellers
Our goal is to release funds when the associated risk has decreased:
- Continuous Monitoring: We diligently monitor the risk status of the transaction.
- Future Payouts: Once it’s determined that the chargeback risk is mitigated, the reserved funds will be processed for future payouts to the seller.
Management of Chargebacks
Should a chargeback occur during the reservation period:
- Use of Reserved Funds: These funds will be utilized to offset any chargebacks and related fees that Premium.Chat may incur with our banking partners.
- Non-Release of Funds: If the reserved funds are needed to cover such losses, they will not be released.
Refer to Our Terms and Conditions
For a comprehensive understanding of how we manage reserved funds and chargebacks, sellers are advised to review Section 7D of our Terms and Conditions, available at Premium.Chat Legal.
Conclusion
By reserving funds for high-risk transactions, Premium.Chat maintains a robust financial protocol to support the continuous operation of the platform and protect the interests of our sellers. While the reservation of funds may be up to 180 days, we aim to release these funds to sellers as promptly as the risk level permits, aligning with the guidelines detailed in Section 7D of our Terms and Conditions.