Refund Reserve

The refund reserve is used to cover for credit card charges you may need to refund. Whenever you process a credit card refund, your Xola account balance is drawn down by the refund amount. If you have a balance that can cover this refund, the refund is processed successfully. However, if your balance is less than the refund amount, the refund will be rejected.

For example, if you had a balance of $100 and are attempting the refund $120, the refund will be rejected because your balance cannot cover the refund amount.

To mitigate against your refunds being rejected, we recommend that you configure a refund reserve that can cover worst case days. Depending on your business, this might mean reserving a day's worth of bookings, or several day's worth of bookings -- this is entirely predicated by the type of business you run and you will be the best judge of what is an appropriate refund reserve.

Quick links: 

How to Edit Refund Reserve Balance

Refund Reserve Report

Refund Reserve Email

Refund Reserve FAQ's


Configure the Refund Reserve

  • Go to the Payout Report (Reports > Payouts)
  • You'll see the Refund Reserve value at the top of the page. If you've never configured it before, the value will be $0. Click on the refund reserve value.


  • Click on the Edit Refund Reserve button.
  • A modal opens that lets you configure the minimum balance you wish to maintain.


  • Click Save to confirm your setting.

Refund Reserve Report

The Refund Reserve Report will display all transactions that are currently held in your Refund Reserve.

The following conditions are used when deciding which transactions to reserve:

  • Xola will reserve transactions in the order in which they came (oldest first), until the reserved amount is greater than or equal to the desired balance amount.
  • Only credit card transactions will count towards your Refund Reserve.
  • If a transaction that is held in reserve is refunded, the reserve balance will decrease by that amount. Xola will then look at the next oldest transactions to cover the shortfall and reserve them.
  • If a transaction that has already been paid out is refunded, Xola will look for un-paid-out transactions to make up for the shortfall and reserve them.
  • Reserved transactions are held in full (never partially). For example, if the reserve is $200 and a $500 transaction is the oldest transaction, Xola will hold the entire $500 in the Refund Reserve. No partial payouts will be done.

When you initially setup your refund reserve, there may be insufficient transactions to cover your desired reserve amount. In this case, your report may look like this:


Once the reserve amount is met, the report will look like this:


Refund Reserve Confirmation Email

Anytime you make changes to your Refund Reserve, Xola will notify the primary account owner of the change with the following email.


* Note:

  • This email is only sent out when the Refund Reserve amount is edited.
  • No email is sent: 
    • When transactions are refunded in Xola and the reserve balance goes down.
    • When Xola continues to fill the reserve that you have set with new transactions, as needed. 

Frequently Asked Questions

Let's assume the desired refund reserve is set at $200 for the answers below.

How do Transactions create my Refund Reserve? 

Xola will reserve as many un-paid out transactions as required to meet the reserve amount ($200). It will start with the oldest un-paid out transaction and keep reserving them till it hits a value greater than or equal to $200. Once it reaches a value >= $200, it will stop reserving more transactions.

How does the reserve balance work when the Xola Balance is $0?

When the reserve is set and the Xola balance is $0, initially nothing will happen. As new bookings start coming in, Xola will start reserving the credit card transactions as they come. So new transactions will keep getting reserved till your reserve hits $200.

How will my Transactions, Earnings, and Payouts reports look after setting up Refund Reserve?

Nothing changes to Xola's existing reports. There is a new report in the Refund Reserve view that lists the reserved transactions. Payout reports won't contain these reserved transactions.

If my first transaction is $500, will a partial $200 be reserved or the entire amount?

If the $500 transaction is the oldest transaction that has not been sent in a Payout, then Xola will hold this full amount in the Refund Reserve. Xola cannot payout a partial portion of any transaction.

How can I un-reserve some of my reserved transactions?

There may be situations where you want to get paid out for some of your older, larger transactions. To do this, you will need to temporarily disable you refund reserve.

  1. Configure your minimum refund reserve to be $0.
  2. Wait overnight for your payout to happen.
  3. The following day, configure your minimum refund reserve back to your desired amount.
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