Understanding the Merchant Service Agreement: Rules, Funds Flow, and Settlement

In this guide, we'll learn how to set up and manage a merchant service agreement to control the flow of funds in your payment system. We will cover how to define processing and settlement currencies, configure fees, set rolling reserve rules, and adjust settlement settings. You will also see how funds move through different account types, from initial processing to rolling reserve and finally to available balance for payouts.

Let's get started

Let's review the merchant service agreement. Here, you can define the rules for the flow of funds. You can set up processing and settlement currencies, fees, rolling reserve rules, and settlement settings. It gives you complete flexibility without complicated manual steps. Next, go to the accounts and funds flow section. Here, you can view different types of balances and cash flow.

First, funds are received from our gateway directly into the processing accounts.

Based on your rules, a portion moves into the rolling reserve account. The rest, after settlement, is added to the available balance and becomes available for payouts.