Changes to the Refund Reserve balance

Adyen is improving the Refund Margin; it will be replaced by the Refund Reserve. The Refund Reserve is a reserve held on your account for funding refunds, third party payouts, and chargebacks. This allows you to execute refunds and third party payouts immediately, even if settled amounts are not available on the merchant account.

From July 30th 2019, the Refund Reserve will replace the current Refund Margin for existing merchants.

Overview of changes

Refund Margin (old)

Refund Reserve (new)

Configured as part of the deposit

Separate RefundReserve balance

A negative payable balance result in a BalanceTransfer (credit) in your payable batch

A negative balance will result in a ReserveAdjustment (credit) in your payable batch

Funding the Refund Margin results in a DepositCorrection (debit) in your payable batch

Funding the Refund Reserve results in a ReserveAdjustment (debit) in your payable batch

Update

On July 30th 2019, Adyen will update all merchants from Refund Margin to Refund Reserve. The update will clear Refund Margin balances and transfer the funds to the Refund Reserve.

After the update, the value of the refund reserve can be amended to the merchant’s preference. 

Reporting changes

In terms of reporting, the change from the Refund Margin to the Refund Reserve will be exhibited in the Settlement Detail Report as follows:

  • DepositCorrection - credit correction, releasing the refund margin into the payable
  • ReserveAdjustment - debit correction, moving funds from the payable into the refund reserve

Additionally:

  • RefundReserve will be a new section on the Payment Balance sheet which is used in:
    • Daily/Monthly Finance Report
    • Aggregate Settlement Report
  • ReserveAdjustment will be a new journal which is used in:
    • Settlement Detail Report
    • Daily/Monthly Finance report
    • Aggregate Settlement Report

An example of the reports with the changes can be downloaded below.

For more information, contact our Support team

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