Originally Posted by RazorSharpe

Hi Adam,

to keep the math simple, let's say you are processing with ccbill with a monthly gross of $10K and let's say ccbill take 5% as a reserve each month. Over 6 months, ccbill will hold $3K of your money and at anytime during your association with them, they will hold at minimum $2.5K of your money as reserve. Example: If in month 7 you get $500, this is replenished with $500 is reserve fees FOR month 7. So realistically, you should always have a reserve of $3K with ccbill.

Paycom does this too but not on a rolling basis. They take $3K over the course of 6 months (or however long it takes to meet your contractual reserve) and then they stop charging you your reserve and keep the $3K.

Just because ccbill give you $500 back every month does not mean they have not invested your $3K since this is the money they have that belongs to you at any given time. It isn't any different from what paycom does, except maybe the ccbill method makes you "feel" like you're getting something back

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