Risk Reserve (RR): Guarantee Against Unpaid Transactions Resulting from Your Activity
The Risk Reserve, or "RR" Account, serves as a security deposit to cover risks associated with unpaid transactions carried out by your users. These transaction concern card payments, direct debit, and any other payment methods that may result in non-payments, even after the contract between the partner and Lemonway has ended (up to 13 months, depending on the payment method used).
This amount is recorded in the 'RR' wallet, which is created within your Lemonway environment as soon as you begin your relationship with Lemonway. The amount may be adjusted at Lemonway's request in the following cases:
- The amount of your Risk Reserve (or Account Balance) has changed due to a modification in your payment activity or due to the activation of new high-risk payment methods.
- Lemonway has used part or all of your current Risk Reserve (or Account Balance) to cover unpaid transactions (chargebacks) related to your clients' payment flows.
How is the Risk Reserve (RR) calculated?
The calculated amount is determined at the opening of your account and is reviewed regularly thereafter. It takes into account all the information provided at onboarding, as well as any available historical payment processing data.
Numerous factors are considered in determining the final amount of the Risk Reserve, including but not limited to the business type activity and business model, the payment methods used and their associated risks, the chargeback rates, and the annual payment volume.
Funding the RR Wallet:
The funds to supply the "RR" wallet are transferred by bank transfer to the same account used to fund your SC account. Lemonway then performs a P2P transfer from the SC account to the RR account, bringing the wallet balance to the level defined by your contract.