Where’s my money? Payouts, holds and deposits explained
Why takings sometimes get held, what a “reserve” is, and how to set up payments so the money reaches you quickly.
Few things worry a small business owner more than takings that don’t arrive. Reviews of payment and booking platforms include stories of weeks of card payments held with no release date, accounts frozen during “reviews”, and support teams that are hard to reach while the money is stuck.
Most holds have an ordinary explanation. Knowing what it is helps you avoid them, and helps you get answers faster when one happens.
Why payment providers hold money
Card payments can be reversed. A customer can dispute a charge weeks later, and the payment provider is on the hook if your business can’t cover it. So providers watch for risk and sometimes hold money back:
A sudden change. Much bigger takings than usual, or a burst of large deposits.
Bookings far in advance. Taking money now for something that happens in three months, such as events, courses and tours.
Disputes and refunds. A run of chargebacks makes a provider cautious.
Missing checks. Unverified identity or bank details, or a business type that doesn’t match what you’re selling.
A rolling reserve is when a provider keeps a percentage of each payment for a set period before releasing it. A payout schedule is how often money moves to your bank: daily, weekly or on demand.
How booking platforms fit in
Some booking platforms take payments into their own account and pay you out later, less their fees. Others connect to a payment account in your own name, so money moves straight from the provider to you. The second way is usually clearer: you can see every payment, payout and dispute yourself, and you deal directly with the provider if something goes wrong.
How to avoid most holds
Verify everything up front: identity, bank account and business details.
Describe your business accurately, especially if you take deposits for future dates.
Warn your provider before a big change, such as a launch, an event or a new location.
Keep refunds and disputes low with clear cancellation terms shown at booking, and reminders so people don’t forget.
Know your payout schedule and check it matches your cash-flow needs.
Questions to ask any booking platform
“Do payments go into an account in my name, or yours?”
“How often are payouts made, and can I see each one?”
“Do you add a fee on top of the card processing rate?”
With hackney.club, deposits and payments go straight into your own Stripe account, under Stripe’s terms. hackney.club takes 0% and never holds your money; Stripe’s standard card fees apply. Build yours free →
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