Chargebacks & Reserves

Keeping your chargeback rate low is critical for maintaining a good standing with Rovy and the card payment networks we rely on. As Merchant of Record, Rovy is the party that answers to these networks, so a high chargeback rate on your account puts our ability to accept card payments for you, and for every other seller on the platform, at risk.

We track chargebacks both by count, as a share of your total number of transactions, and by value, comparing the total dollar amount of chargebacks received against your total transaction volume for a given month. Both are used when we apply the thresholds below.

• Above 0.4%:we'll notify you and require an action plan to bring your rate back down, such as changes to your refund policy, product descriptions, or checkout flow.
• Above 0.65%: your payouts or our ability to accept payments for your account may be suspended while we work with you to resolve the underlying cause.

Any changes required for your account are always worked through collaboratively with our Risk team and communicated to you in advance.

In some cases, Rovy may hold back a portion of your payouts as a reserve, for example while your account is new, if your chargeback or refund rate is elevated, or if we identify other risk factors on your account. A reserve covers potential chargebacks and refunds tied to sales you've already made, and is released once the associated risk has passed.

Reserves are usually structured as a rolling reserve: a percentage of each transaction is held back for a fixed number of days from the date of sale, then released once that window closes, rather than held against your entire balance indefinitely.

If a reserve applies to your account, our Risk team will let you know the percentage, the rolling period, and the reason it's been applied.