At Qonto, we prioritize the security and stability of your financial transactions. To cover any financial obligations that might arise from disputed transactions or refunds, we hold a percentage of each collection for 8 weeks.
Are all customers subject to holds?
No, this depends on your business financial assessment. When setting up direct debit collection, you will see if holds are implied and what percentage is held.
The hold percentage may evolve and you can monitor these held amounts in your Incoming Direct Debits section. Moreover, when setting up a collection, the amount held will be displayed on the One last look screen.
How does the hold system work?
Let’s imagine that 30% of that amount is temporarily held, if you receive a direct debit of €200 on June 3, 2024, we will hold €60 (30% of €200) for 8 weeks.
If no refund is requested, the hold will be released on August 3, 2024.
The status of the direct debit will change from On hold to Completed once the hold is released.
Do I need to contact support to release the held amount?
No, you do not need to contact support for the release of the held amount. The system will automatically release the funds after the 8-week period. Please note that this period cannot be shortened.
Why is this procedure necessary?
When disputes occur, the payment amount, along with any additional dispute fees, is usually deducted from a business’s account balance. In cases where the account balance is insufficient to cover these amounts, holds ensures that there are adequate funds to manage these disputes without disrupting your business operations.
What factors affect the percentage of the hold?
The percentage of the hold is determined based on the level of risk associated with your business. Factors such as industry conditions, payment activity, and financial stability are considered when setting the hold percentage. The percentage held may vary over time and you can check it in your Incoming direct debits section.
How are the holds funds utilized?
Holds are set aside to ensure there are funds available to cover any refunds or disputes on your account. If a transaction gets refunded or disputed, the corresponding hold will be released and used to cover the refund/dispute immediately. If the funds are not needed to cover any disputes or refunds, they will be released in full at the end of the hold period.
For any further questions or clarifications, feel free to reach out to our support via chat.