What is a “holdback”?

A holdback is an agreed amount of the client’s funds held for a specified period of time which the acquirer reserves and makes temporarily unavailable for the client. In the case of chargebacks, the acquirer uses that holdback as a guarantee to cover any expenses and pay off all the necessary fees and compensations. You can be sure that the holdback is well-protected and will be released after a certain period of time agreed with the client.