Payout and Reserves Policy

Last Updated: August 24, 2025

1. Our Philosophy

At PaySeats, our mission is to provide a robust and reliable digital infrastructure. A key part of this is integrating with world-class, regulated payment partners. This policy explains how their payout and security processes work and how PaySeats provides you with transparency into these systems.

This policy exists to protect the entire community by ensuring the financial integrity of transactions, as required by our payment partners.

2. Standard Payouts

For most organizers, our Payment Partner processes payouts on a rolling basis. This means funds from your sales are transferred directly by the Payment Partner to your bank account within a few days of the transaction, giving you access to your money before the event or service takes place. PaySeats does not control this timeline but displays the status provided by the Partner in your dashboard.

3. Payout Reserves: What They Are and Why They Exist

A reserve is a temporary hold on a percentage of an Organizer’s funds, applied and held directly by our Payment Partner. It is not a penalty, but a standard security measure used by payment processors to manage financial risk.

Reserves are applied by the Payment Partner when their risk systems identify a higher-than-usual likelihood of refunds or chargebacks. The reserve ensures funds are available to cover these potential returns, protecting you from unexpected debts and ensuring buyers can be refunded. PaySeats does not decide on, apply, or hold any reserves.

4. Common Factors for the Application of a Reserve

To provide transparency, this section outlines common factors that may lead a Payment Partner to apply a reserve based on their own risk policies. PaySeats does not influence these decisions but is obligated to reflect them in your dashboard.

4.1. New Organizer Accounts

Payment Partners often apply reserves to new accounts until a trusted history is established. This is typically until one of these two milestones is met: • The successful completion of the first 3 events or services. • A total processed volume of €1,000 without significant disputes.

4.2. High-Risk Event or Service Categories

The Payment Partner’s risk systems may identify certain categories as having a higher probability of cancellations or disputes. Some examples include: • Large-scale festivals or events (typically over 1,000 attendees). • Events or services with an individual ticket price over €200. • Travel packages, tours, or accommodations. • Events that have been rescheduled multiple times.

4.3. Account Performance

The Payment Partner continuously monitors account performance for risk patterns. A reserve may be applied if their systems detect: • A dispute or chargeback rate that exceeds 1% of total transactions in a 60-day period. • A sudden and drastic increase in sales volume inconsistent with the account’s history. • A high volume of user complaints or refund requests related to a specific event or service.

5. The Process: Notification, Duration, and Release

While PaySeats does not control the reserve process, we are committed to providing you with full transparency. • Notification: If the Payment Partner applies a reserve, PaySeats will immediately display a notification in your control panel and notify you by email. • Details: The information we receive from the Payment Partner, including the percentage of funds held and the reason for the reserve, will be shown in your dashboard. • Duration: Funds are held by the Payment Partner, typically for up to 90 days after the event concludes. This timeframe is set by them to cover the period when banks allow buyers to initiate a chargeback. • Release: Funds are released automatically by the Payment Partner once their security period ends and if there are no pending disputes. PaySeats does not intervene in this process. The release will be reflected in your next scheduled payout.

6. Questions and Support

We understand a reserve can impact your cash flow. While we cannot override a Payment Partner’s decision, we can help you understand the situation and, in some cases, assist you in providing relevant information to the Partner for an appeal.

For any questions, please open a ticket in our Support System.