Understand Merchant Potential Liability
Payout Delay and Deposit Explanation
- Sana Pay leverages Adyen's processing and acquiring services to offer a comprehensive payment solution.
- During your Sana Pay onboarding, Adyen's dedicated underwriter and risk assessment team evaluates your potential risk and exposure, known as merchant potential liability (MPL).
- To cover potential losses due to payment processing, such as chargebacks and refunds, any calculated exposure is managed through either a payout delay (typically T+3-6, subject to transaction types) or a deposit, which can fluctuate based on various factors. This coverage is to protect you from settlement uncertainties in case of extreme scenarios. The deposit, exclusively owned by you, is refundable upon discontinuing Sana Pay services, minus any outstanding fees.
- If the fulfillment period used in Sana Pay differs from the actual fulfillment period, you can request a reassessment by providing supporting evidence like fulfillment/delivery terms, historical order data (order date/delivery date).
In our partnership with Adyen for Sana Pay, it is crucial to understand the dynamics of payout delays and deposits. Payouts are typically delivered within 3-6 (but can be longer, depending on the industry) business days, but deposits act as a safety net against potential payment issues like chargebacks or refunds. These deposits are dynamically calculated based on factors like transaction history and belong entirely to you and are refundable upon discontinuing Sana Pay services.
Know Your Customer (KYC)
During your Sana Pay onboarding, Adyen conducts a KYC process. Their expert underwriters assess your potential risk and exposure, often referred to as merchant potential liability (MPL).
Payout Delays and Deposits
The MPL determines whether your exposure will be managed through a payout delay and/or a deposit. Payout delays, typically 3-6 business days (subject to change based on transaction types), allow mitigation of potential risks. Deposits act as a financial buffer to settle situations like chargebacks or refunds. The deposit amount varies based on factors like transaction volume and history.
Your Deposit, Your Security
It is crucial to understand that the deposit belongs exclusively to you. If you decide to discontinue Sana Pay services, Adyen will gradually refund your deposit after accounting for outstanding fees.
Calculating the Deposit
The deposit calculation is based on two main aspects: exposure and coverage. Exposure is estimated based on potential losses, considering fulfillment, chargebacks, and refunds. Coverage combines your pending and payable balances to contribute to the required deposit.
Automated Risk Assessment
Adyen's risk engine periodically reviews your merchant account's exposure and coverage. If needed, an additional deposit amount is added. If your exposure decreases, the deposit funds are lowered, or released.
Understanding Corrections
Corrections involve adjustments to the deposit based on current MPL calculations. The MPL tool estimates Adyen's exposure for each merchant account daily. If the exposure exceeds coverage by a certain threshold, funds are withheld to cover the difference.
Requesting Fulfillment Reassessment
If you can prove a shorter fulfillment period, we can potentially reduce the deposit and/or payout delay. Gather proof about your actual fulfillment period (e.g. order/delivery history, delivery T&Cs, etc.) and reach out to your Sana Commerce success manager to initiate this process.
Additional Information
How Do Payouts Work?
Deposit
Sales Day Payout
Sana Commerce is committed to transparency and secure payments. If you have any questions, please do not hesitate to contact us. Your peace of mind is our priority.
