Explaining the Rolling Reserve
FairPay has a 5% Rolling Reserve, meaning 5% of your sales are paid out 180 days later.
You can see how much money is in the Rolling Reserve in your dashboard and at the bottom of your transaction log.
A Rolling Reserve is a risk management strategy where payment processors hold back a percentage of a merchant's sales for a specific time to protect themselves against chargeback & disputes.
After the set period (usually 180 days), the funds are paid to the merchant on a rolling basis.
The Rolling Reserve is not a fee; it does not cost you any money.
At FairPay, we give you the best commission possible in the adult industry. As a result, we have tiny margins compared to other sites - as little as 1% on some transactions.
Payment processors in the adult industry typically have Rolling Reserves lasting 180 days and ranging from 5% to 15%.
Unlike other sites that take a 20% cut or more, FairPay cannot front this money since it is greater than our profit per sale - we must wait to receive it before we can pay it out to you.
The Rolling Reserve is calculated by applying 5% to the price of the content you sold.
Example 1:
Your customer is purchasing a 50 USD live show from you using 3D Secure
Factoring in our Service Fee, your customer pays 51.95 USD
We charge you a payment processing fee of 5% of 50 USD = $2.25
5% of the show price goes to the Rolling Reserve for 180 days = $2.25
In your next payout, you will receive $45 for this sale
180 days later, in your following payout, you will receive $2.25 again for this sale
Your immediate revenue share is $45 out of $51.95 = 86.62%, and your total revenue share is $47.25 out of $51.95 = 90.95%.
Example 2:
Your customer is purchasing a 100€ live show from you, as well as a video for 20€ and making a 50€ donation
In total, your customer's shopping cart is of 170€
Factoring in our Service Fee, your customer pays 174.95€
Your customer is paying using 3D Secure, so our payment processing fee is 5% = 8.5€
The Rolling Reserve is also 5% = 8.5€
In your next payout, you will receive 153€ for this sale
180 days later, in your following payout, you will receive 8.5€ again for this sale
Your immediate revenue share is 153€ out of 174.95€ = 87.45%, and your total revenue share is 161.5€ out of 174.95€ = 92.31%.
Working with an 80% commission website, you would earn only 139.96€ instead of 161.5€ for the same sale.
👉 Read more on our payout schedule.
There are always risks when doing business, especially with a young company. We'd be lying if we told you otherwise.
However, there are 2 important things to keep in mind:
We do not have access to your money while it is in the Rolling Reserve, so we cannot spend it.
The money is with the bank, and when the bank sends it to us, we send it to you in your following payout.
We want to remove the Rolling Reserve, and we are working on it. However, it is hard for young startups to request special conditions from payment processors and banks.
Initially, we were going to have a 10% Rolling Reserve at the start and we could lower it to 5% through negotiations.
As FairPay grows and becomes stronger, we will be in a better position to negotiate and eventually remove the Rolling Reserve entirely.
You can see how much money is in the Rolling Reserve in your dashboard and at the bottom of your transaction log.
What is a Rolling Reserve?
A Rolling Reserve is a risk management strategy where payment processors hold back a percentage of a merchant's sales for a specific time to protect themselves against chargeback & disputes.
After the set period (usually 180 days), the funds are paid to the merchant on a rolling basis.
The Rolling Reserve is not a fee; it does not cost you any money.
Why does FairPay have a Rolling Reserve?
At FairPay, we give you the best commission possible in the adult industry. As a result, we have tiny margins compared to other sites - as little as 1% on some transactions.
Payment processors in the adult industry typically have Rolling Reserves lasting 180 days and ranging from 5% to 15%.
Unlike other sites that take a 20% cut or more, FairPay cannot front this money since it is greater than our profit per sale - we must wait to receive it before we can pay it out to you.
Examples
The Rolling Reserve is calculated by applying 5% to the price of the content you sold.
Example 1:
Your customer is purchasing a 50 USD live show from you using 3D Secure
Factoring in our Service Fee, your customer pays 51.95 USD
We charge you a payment processing fee of 5% of 50 USD = $2.25
5% of the show price goes to the Rolling Reserve for 180 days = $2.25
In your next payout, you will receive $45 for this sale
180 days later, in your following payout, you will receive $2.25 again for this sale
Your immediate revenue share is $45 out of $51.95 = 86.62%, and your total revenue share is $47.25 out of $51.95 = 90.95%.
Example 2:
Your customer is purchasing a 100€ live show from you, as well as a video for 20€ and making a 50€ donation
In total, your customer's shopping cart is of 170€
Factoring in our Service Fee, your customer pays 174.95€
Your customer is paying using 3D Secure, so our payment processing fee is 5% = 8.5€
The Rolling Reserve is also 5% = 8.5€
In your next payout, you will receive 153€ for this sale
180 days later, in your following payout, you will receive 8.5€ again for this sale
Your immediate revenue share is 153€ out of 174.95€ = 87.45%, and your total revenue share is 161.5€ out of 174.95€ = 92.31%.
Working with an 80% commission website, you would earn only 139.96€ instead of 161.5€ for the same sale.
👉 Read more on our payout schedule.
Is my money safe?
There are always risks when doing business, especially with a young company. We'd be lying if we told you otherwise.
However, there are 2 important things to keep in mind:
We do not have access to your money while it is in the Rolling Reserve, so we cannot spend it.
The money is with the bank, and when the bank sends it to us, we send it to you in your following payout.
In the future
We want to remove the Rolling Reserve, and we are working on it. However, it is hard for young startups to request special conditions from payment processors and banks.
Initially, we were going to have a 10% Rolling Reserve at the start and we could lower it to 5% through negotiations.
As FairPay grows and becomes stronger, we will be in a better position to negotiate and eventually remove the Rolling Reserve entirely.
Updated on: 28/11/2023
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