@Dreamscape-Studio … as we read that and re-read that … we think that Amazon is setting up two things.
First is this DD+7 as the standard way that orders will be paid by … deferring transaction payment with DD+7. All orders will go into Deferred Transactions until released.
Second is splitting out Account Level Reserves from Deferred Transactions. This will allow Amazon to handle everything as Deferred Transactions and still have an Account Level Reserve on a new seller and/or a seller who has a history of charge backs, A2Z claims, product issues, etc.
PayPal use to require a $300 amount in your balance to keep your account open as a safety measure against charge backs and claims. It wasn’t until a few years ago that PayPal allowed us to have all of the funds in the account. It probably was around the same time they started doing loans.
Again … from Amazon …
It is a normal part of selling on Amazon to see funds in the Account level reserve section of the Statement View tab on your Payments report. It’s the amount of money that is reserved to ensure that you have enough funds to fulfill any financial obligations, such as refunds, claims, or chargebacks.
Common reasons for an account level reserve
You have open A-to-z Guarantee claims
When an A-to-z Guarantee claim is filed, the claim amount will be reserved until the claim is resolved. Some claims can take up to 14 days or longer to resolve, but the reserve will be released after the claims are processed.
One or more of your orders has received a chargeback
Money might be reserved if your account has any chargebacks from transactions in the last 90 days. The reserve will be released after the chargebacks are processed.
Your seller performance has fallen below our benchmarks
Money might be reserved if performance metrics fall below our benchmarks. Lower metrics frequently indicate a higher likelihood of claims, chargebacks, and returns. Visit Account Health dashboard regularly to monitor your seller account’s adherence to the performance targets and policies required to sell on Amazon.
Your account is under review
We might reserve funds if we notice an unexpected change in your sales or account activity, or if you are a new seller with estimated delivery times that are longer than your settlement period. Refer to Account health FAQ to learn how to maintain great account health.
Local regulations require us to withhold income tax from you (varies by store)
Money might be reserved depending on your tax registration status and Amazon’s responsibility to withhold and pay income tax based on your sales.
Multiple reasons for account level reserves can be applied at the same time. For example, if an order for $40 has incurred a chargeback and an order for $20 has an open A-to-z Guarantee claim, the total account level reserve from those two orders would be $60.
Frequently Asked Questions
How are account level reserves different from deferred transactions?
Delivery-date based reserves are now shown as deferred transactions. Invoiced orders placed by Amazon Business customers are deferred while awaiting payment by the buyer. For more information, go to What is a deferred transaction.
How can I get my money released if I want to close my account?
For information on account closure, go to Close your seller account.
How can I get my money faster?
In some situations, you might be able to take action to release funds faster:
