Posts Tagged ‘reserves’
The Vertical Advantage: Why Software Providers Are Better at Managing Payments Risk During a Crisis
As small businesses grapple with the economic conditions brought on by the pandemic, their payment partners must be careful to avoid making the hardship worse.
Read MoreWhat are Reserves, and How Do Payment Facilitators Use Them to Mitigate Risk?
Payment facilitators have a number of tools they can use to reduce their exposure to risk. To mitigate against credit risk, PFs will sometimes hold back funds from the submerchant – known as a reserve – to guard against possible future losses.
When are reserves typically used, and is now – as many businesses are experiencing financial hardship because of the coronavirus – a time to implement them?
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