A reserve is a temporary hold equivalent to one month of an employee's salary for a predetermined period. A reserve payment is sometimes required before a Customer can onboard a new employee. Reserves are intended to cover any anticipated losses from a business ceasing to operate. Reserves are a standard industry practice and do not affect a business's ability to continue hiring and employing people through Remote.
Our compliance team evaluates all new and current customers on an ongoing basis to determine whether reserves are required or not.
Why would a reserve be placed on an account?
A reserve may be placed on an account because we've determined that the business presents an increased level of risk. This may be due to several reasons, including, but not limited to:
- The business belongs to a high-risk industry
- The business has been flagged as a credit risk by a credit score provider
- The business has shown an elevated level of dispute activity flagged by our payment provider