A Refund Reserve is a minimum reserve in your Sezzle account used to cover refunds for your shoppers, ensuring a quick and seamless refund process.
A Refund Reserve, or a reserve fund, is money withheld from your Sezzle payouts to ensure there are funds available to cover refunds and disputes on your account. The minimum reserve amount is up to your discretion; however, we recommend withholding the equivalent of 3 days of Sezzle transaction volume to ensure your reserve account does not go negative.
If your Refund Reserves have sufficient funds to cover refunds, Sezzle will allow you to issue a refund and settle from the Refund Reserve.
Why is Sezzle introducing Refund Reserves?
Sezzle needs to ensure that shoppers are protected and receive their refunds. Maintaining a reserve balance in your Sezzle account is a preventive measure that helps safeguard you and your shoppers and enables a smoother refund process if required.
If Sezzle is unable to issue refunds via your refund reserve account, we will require a credit/debit card on file to issue refunds. Any refunds issued through a credit/debit card will incur a refund fee. To avoid refund fees, please set up your Refund Reserve here. The updated merchant agreement can be found here.
When I set up a Refund Reserve, where will the funds come from?
When you set up a Refund Reserve, you will not immediately see funds in the account. This is because the funds will come from future settlements until the fund is at the amount you set.
How can I withdraw funds from my Refund Reserve?
You can withdraw funds from your refund reserve by simply heading back to the Refund Reserve section of your Payment Method Settings. From there, you can switch the amount to zero and submit.
How do I set up Refund Reserves in my account?