In our Marketplace, we continuously work to ensure the best possible experience for both sellers and customers. For this reason, one of the mechanisms we have implemented is our funds retention system.
Funds retention is a system whereby part of a seller’s balance is temporarily withheld.
This retained amount is not applied to individual orders, but as a specific amount associated with each cycle.
This system acts as a precautionary and safeguard measure for our customers.
If a store does not respond to an incident and/or does not have sufficient balance in its account, this retention allows us to act quickly to resolve it without affecting the buyer.
It also helps us maintain the quality standards of the marketplace.
Funds retention is applied three times per month, before each billing cycle.
The retained amount is automatically calculated by an algorithm that takes into account:
- Your monthly revenue
- The volume of refunds managed during the same period
In each cycle, a new retained portion may be added, increasing the total retained balance.
Therefore, each communication will include:
- The incremental amount retained in that cycle
- The total accumulated retained amount
Example: if a seller had €1,000 retained and an additional €100 is retained, the communication will indicate a €100 increase and a total of €1,100.
It is important to note that the system does not accumulate amounts month by month, but instead maintains at any given time the highest retained amount calculated. In other words, successive retentions are not added together, but the retained amount is updated based on the highest value determined by the algorithm.
Regarding the release, once 6 months have passed since the first retention, that initial amount is released. From that point onwards, every time a new 6-month period is reached, the next corresponding retained amount is released in chronological order.
Example: if a retention of €100 is set in January, €150 in February and €200 in March, the system does not retain €450 but €200 (the highest value). When 6 months have passed since January, the amount corresponding to that first reference is released, and subsequently the following amounts will be released as they reach their respective period.
Retained amounts will be visible in each invoice corresponding to the cycle.
Before each cycle, the seller will receive a notification via internal message.
- Amount retained in that cycle (incremental)
- Total accumulated retained amount