We may withhold funds for the following reasons:
- Fraud protection
- Backup withholding
Fraud protection
We may withhold funds to help protect you from fraud, for example, we may withhold funds for the following reasons:
- If the batches are the first batches settled on a new account
- If there are transactions that are unusually high in value
We can withhold funds by either delaying a batch or by diverting the funds into a non-interest-bearing escrow account.
Note: You need to provide an invoice to confirm transactions that are unusually high in value.
When we release your funds, you can expect to receive them in your bank account in the following time frames:
- Delayed batches: Within your normal funding time frame
- Diverted funds: Within five business days
Backup withholding
The Internal Revenue Service (IRS) places a backup withholding tax on your funds when the information you have given us does not match their records. This means you are not paying the correct tax on your income.
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Tags: backup withholding, delayed batch, deposits, fraud protection, reporting, withheld funds, statements