This guide outlines how Synder manages the recording of TikTok reserve balances in your accounts.
What is TikTok Balance Reserves?
The TikTok reserve balance is a portion of a seller’s funds that TikTok temporarily withholds. This reserve is held to safeguard against potential issues associated with refunds, chargebacks, or disputes.
By maintaining these funds, TikTok ensures there are sufficient resources to cover any unforeseen circumstances, thereby ensuring a safe and reliable transaction experience for both sellers and buyers.
How does Reserve work?
- TikTok Shop determines and sets aside a portion of each new transaction’s settlement, based on a set percentage rate, to hold as a reserve.
- The reserved funds are temporarily retained for a defined period and cannot be accessed during this time. This allows TikTok to manage any possible matters arising from the transaction, such as customer returns or payment disputes..
- Once the reserve period has passed without any issues, the funds held in reserve are released and made available for the seller to withdraw.
- Final payout = total settlement amount + released reserve funds
Example Scenario:
First Sale
You make a sale on TikTok for $210, where TikTok has charged $10 for processing fees. TikTok sends you $150, holding $50 as a reserve.
- Sale: $210
- Fees: $10
- Settlement amount: $200
- Reserve held: -$50
- Actual payout received: $150
In your Synder records:
- Clearing account: $210 (sale) – $10 (fees) = $200
- Clearing → Bank: $150
- Clearing → Balance Reserve: $50
- Clearing account balance: $0
Second Sale
You sell again on TikTok for $105, where TikTok has charged $5 for processing fees.. This time, TikTok pays out the full $100, along with the previously held $50 reserve — giving you a total of $150.
- Sale: $105
- Fees: $5
- Settlement amount: $100
- Reserve released: +$50
- Actual payout received: $150
In your Synder records:
- Clearing account: $105 (sale) – $5 (fees) = $100
- Clearing → Bank: $150
- Balance Reserve → Clearing: $50
- Clearing account balance: $0
Reach out to the Synder Team via online support chat, phone, or email with any questions you have – we’re always happy to help you!