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Donnie Gangsta · 02-08-2003, 03:19 PM

I am under the impression that iBill and CCBill return the reserve they hold for 6 months, then return it back to you. Correct me if I'm wrong.

Were you all aware that Epoch's reserve handling system is totally different? Here is the way it works:

They hold 5% of your net in reserve until the reserve amount is equal to one (1) month of gross processing, then they place your account on no reserve.

I will give you an example:

Say you average $100,000 per month in gross processing. That would equate to about $80,000 per month in net. So, they take out $4000 per month until they have $100,000 in reserve. This means that you don't get to see your $100,000 for 24 months. (100,000/4000 = 24). And that is if you stay consistently at $100,000. What if you grow 15% per month? I'm not going to bother with the math, because I don't know remember the formula for an exponential equation, to be honest,

, but you get the point. You will basically never see your reserve. They say they do a 6 month average in determing what one month gross is, but say a year later you're at $200,000 per month average. Basically, it will take a lot longer than 24 months to get to $200,000 in reserve.

This is total bullshit. Just think -- they pool all the reserve money in some conservative investment account at 10% per year, and make a killing for free, with your money, and they act like they're doing you a favor.

Oh, and if you never reach 1 month gross in reserve, you don't get your reserve back until 18 months after the last transaction with paycom.

I apologize for singling Epoch out if this is the case with all processors, but I am pretty sure the typical case is reserve returned after 6 months, which is fair.

I would really like to know other people's opinions about this, as well as their input.

02-08-2003, 03:19 PM
Donnie Gangsta Confirmed User Join Date: Mar 2002 Location: Las Vegas Posts: 1,104	5% Reserve Fee? Epoch?? I am under the impression that iBill and CCBill return the reserve they hold for 6 months, then return it back to you. Correct me if I'm wrong. Were you all aware that Epoch's reserve handling system is totally different? Here is the way it works: They hold 5% of your net in reserve until the reserve amount is equal to one (1) month of gross processing, then they place your account on no reserve. I will give you an example: Say you average $100,000 per month in gross processing. That would equate to about $80,000 per month in net. So, they take out $4000 per month until they have $100,000 in reserve. This means that you don't get to see your $100,000 for 24 months. (100,000/4000 = 24). And that is if you stay consistently at $100,000. What if you grow 15% per month? I'm not going to bother with the math, because I don't know remember the formula for an exponential equation, to be honest, , but you get the point. You will basically never see your reserve. They say they do a 6 month average in determing what one month gross is, but say a year later you're at $200,000 per month average. Basically, it will take a lot longer than 24 months to get to $200,000 in reserve. This is total bullshit. Just think -- they pool all the reserve money in some conservative investment account at 10% per year, and make a killing for free, with your money, and they act like they're doing you a favor. Oh, and if you never reach 1 month gross in reserve, you don't get your reserve back until 18 months after the last transaction with paycom. I apologize for singling Epoch out if this is the case with all processors, but I am pretty sure the typical case is reserve returned after 6 months, which is fair. I would really like to know other people's opinions about this, as well as their input.