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Originally Posted by mstyanda
Ok I will be in touch and thank you for the responses. I guess I am a bit perplexed because my current merchant accounts didn't have any deposit or special withholding of fees so not sure exactly what that is about?
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An IPSP (Internet Payment Service Provider) provides payment processing on your behalf providing you with use of their merchant accounts, therefore not requiring you to have your own. Most charge a rolling reserve of at least 5% of your sales. Others charge a flat fee (security deposit). They usually retain this balance for several months after your final transaction to cover the risk of future credits or chargebacks.