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 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 funds come from?
They will come from new/incoming order payouts. It is not possible to transfer funds from an existing interest balance unless withdrawn from there.
I don’t see how to add a credit / debit card to settle my refunds.
The ability to add a credit card will become available soon and will show under Payment Methods (where you now can start setting up your Refund Reserves). Until then, the funds will be pulled from your payouts on new Sezzle orders or your interest account.