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.
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.
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