You might wonder what the ReserveAdjustment means on your Adyen Settlement or what the Adyen Reserve is. Below we explain what the Adyen reserve is and what the adjustment means.
What is the Adyen Reserve?
The Adyen reserve threshold is the minimum amount of funds that Adyen holds in your account to manage potential financial risks, such as chargebacks, refunds, or fraud. This reserve acts as a safety buffer, and any funds above the threshold can be paid out to your bank account.
If your balance falls below the threshold, Adyen may hold back future payouts until it is met again. The reserve threshold is in place to help Adyen manage risk, particularly for new or high-risk merchants, and ensures there are sufficient funds available to cover any liabilities.
The minimum reserve amount is €500, and the maximum is €2,000. Additionally, we can adjust the reserve amount to suit your business needs, especially if you process large amounts on a weekly basis that may require frequent refunds. In such cases, we may exceed the €2,000 limit to ensure adequate coverage for your operations.
What is the "ReserveAdjustment" on my Adyen Settlement?
The "ReserveAdjustment" on your Adyen settlement refers to a change in the amount of funds held in your reserve balance. This adjustment can either increase or decrease the reserve, depending on your account activity, risk profile, or changes in refund and chargeback volumes. Below you see how this "ReserveAdjustment" is showing on your Adyen settlement.
When you process a refund, the refunded amount is taken out of the reserve. To maintain the required reserve threshold, this amount is then replenished with your next settlement. If the reserve needs to be increased, a portion of your payout will be held back. If it’s decreased, any excess funds may be released and included in your payout. These adjustments help ensure there are always enough funds available to cover potential financial risks, such as refunds or chargebacks.
When you login to your Adyen essentials environment you will see this reserve as shown below under the home tab:
