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Reserve Balance: What It Is and How It Works

Learn why part of your earnings are held temporarily and how reserves are released.

Updated over a week ago

Overview

To help protect vendors and shoppers, Homegrown uses a Reserve System. A percentage of your earnings from each order is held for a short period to account for potential refunds, chargebacks, or disputes. This guide explains how reserves work, when they’re released, and how they affect your balance.


What Is a Reserve Balance?

  • The Reserve Balance is the total amount of funds currently on hold from your recent sales.

  • Reserves are automatically released after 30 days and added to your Available Balance.

  • Reserve funds cannot be used or withdrawn until they’re released.

💡 Fun Fact: Reserve systems are standard for marketplaces and payment processors—it’s all about keeping transactions safe for everyone! 🛡️


Reserve Details

Key Details

What You Need to Know

Reserve Rate

20% of the gross amount of each order

Hold Duration

30 days

Release Schedule

Weekly, during the standard payout cycle

Where to View Release Dates

Shown on each reserve transaction in your ledger

Effect on Available Balance

Reserve funds are excluded until released


Example Workflow

  1. Order Placed: Shopper pays $100 → $20 is placed in reserve.

  2. Reserve Transaction: Shows in ledger with release date listed.

  3. 30 Days Later: $20 released → moved to Available Balance.

  4. Payout Cycle: Released funds included in next weekly payout

🚀 Pro Tip: Reserve funds are released automatically—you don’t need to take any action. Just check the release date to plan your cash flow!


Where to View Your Reserve Balance

  • Go to My Account → Finances → Transactions Tab or through your Vendor Dashboard using the Finance menu.

  • At the top, you’ll see your Reserve Balance and Available Balance.

  • Each Reserve Transaction in the ledger includes the:

    • Amount held

    • Related order reference (with link)

    • Release date


Frequently Asked Questions

Can I request early release of reserves?

No, reserves are released automatically after 30 days.

Will reserves change based on my vendor activity?

Currently, all vendors have a fixed 20% reserve held for 30 days. Future enhancements may include dynamic reserves based on account history.

Do reserves earn interest?

No, reserve funds do not accrue interest while being held.

🗓️ Fun Fact: Reserves are released on a rolling basis—so once you’ve been active for over 30 days and making sales, you’ll start seeing regular releases every week!


Next Steps

Want to know when you’ll get paid and how fees affect your payouts?
➡️ Available Balance and Payouts

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