Disbursements

Daily disbursement is the net amount that Braintree transfers to the merchant's linked bank account after applying all deductions and additions for that day. If the merchant account has an active reserve, rolling, or capped, the disbursement calculation also accounts for the money that Braintree holds and releases as part of that reserve.

How reserves affect your disbursement

A disbursement isn't gross sales minus refunds, chargebacks, and fees. When a reserve is active, Braintree also subtracts the amount held for that day's reserve and adds back any previously held funds scheduled to be released that day. The exact formula depends on whether the reserve is a rolling reserve or a capped (risk) reserve.

Rolling reserve

• Reserve Held —Reserve Percentage × Gross Sales for that day.
• Reserve Released —The amount originally held on the day whose holding period expires today.

Capped reserve

The capped (risk) reserve formula depends on whether the current reserve balance has reached the cap.

Rolling reserve example

Configuration: 5% reserve, 30-day holding period, effective January 1.

Starting on day 31, each disbursement includes both a new hold and a release of the funds held 30 days earlier, so the reserve’s cash flow impact becomes incremental rather than cumulative.

Capped reserve example

Configuration: 5% reserve, $5,000 cap, effective January 1.

In the example here, on January 12, Braintree holds only $100 instead of the full $550, because that’s the amount needed to bring the balance up to the $5,000 cap.

Disbursements under risk holds and collections

Rolling and capped reserves operate independently of risk holds and collections. However, when either is active alongside a reserve, the disbursement amount and the Daily Funding Report (DFR) reflect that interaction differently. Understanding this distinction matters for reconciliation.

Merchant under a risk hold

When Braintree holds a merchant’s disbursement because of a risk event — for example, a carding attack — reserve calculations continue as normal, and the full disbursement amount is held rather than paid out:

• Disbursement Amount (held) = Sales − Refunds − Chargebacks − Fees
• Reserves Held = $X
• Reserves Released = $Y
• Total Reserve Balance = $P

The DFR summary reflects:

• Adjustments = Reserve Held − Reserve Released ($X − $Y)
• Balance = Disbursement Amount + Total Reserve Balance ($A + $P)

The disbursement itself isn’t paid out, but the reserve hold and release are still journaled and reported.

Merchant under collections

When a merchant owes Braintree money — for example, because of excessive chargebacks — Braintree nets the owed amount from the disbursement before payout. Reserve calculations are based on the pre-netting amount.

Example: a merchant owes $10,000.

• Disbursement (pre-netting) = Sales − Refunds − Chargebacks − Fees = $A
• Reserves Held = $X
• Reserves Released = $Y
• Total Reserve Balance = $P
• Disbursement (post-netting) = $A − $10,000 owed

The DFR summary reflects:

• Adjustments = Reserve Held − Reserve Released − Collections Amount ($X − $Y − $10,000)
• Balance = Post-netting Disbursement + Total Reserve Balance ($A − $10,000 + $P)
• Disbursed Amount = Post-netting amount ($A − $10,000)

Edge cases and special scenarios

Negative disbursements

If refunds, chargebacks, fees, and reserve holds together exceed gross sales plus any reserve releases for the day, the disbursement can be negative.

Zero gross-sales days

On a day with no transaction activity:

• No reserve is held — there are no gross sales to calculate a hold against.
• Releases still occur — any previously held funds scheduled to release that day are still included in the disbursement.

As a result, a merchant can receive a payout made up entirely of released reserve funds, even on a day with no new sales.

Weekend and holiday releases

Release dates that fall on a weekend or holiday shift to the next business day. On the following business day, a merchant may see 2–3 separate release line items in the DFR — one for each calendar day whose holding period expired during the non-business days.

Configuration changes mid-cycle

Reserve configurations use an effective-date model:

• Existing holds aren’t affected. Funds already held under a previous configuration keep their original holding period and release date.
• New holds follow the new configuration. Only transactions processed on or after the effective date use the updated parameters.

Example: the holding period changes from 60 to 30 days, effective March 1.

There’s no retroactive adjustment: funds held in February still release on their original 60-day schedule.

Capped reserve: cap amount reduced

If the cap amount is lowered below the current reserve balance, Braintree releases the excess as a “Reserve Released” line item in the next disbursement.

Example: the cap drops from $10,000 to $7,000 while the current balance is $10,000. The next disbursement includes a $3,000 reserve release.

Opting out of a reserve

To remove a reserve, set the percentage and holding period to zero with a future effective date:

• After the effective date, no new funds are withheld.
• Scheduled releases continue — any funds already held are released on their original schedule.
• The reserve balance gradually decreases to zero as all held amounts are released.

Key terms