Why Do We Monitor Financial Position?
Kustom manage customer funds between purchase and payout. If a business becomes insolvent or cannot fulfill orders, Kustom face risk of covering refunds and chargebacks.
To manage this responsibly, Kustom monitor:
Credit ratings and financial indicators
Public records (such as court filings)
Signs of financial stress or instability
This helps us act early to protect the stability of the payment service for all merchants.
What Risks Are We Managing?
The main concern is merchant default — when a business cannot deliver on sales, and customers request refunds or chargebacks. If the merchant cannot cover these, Kustom may still need to refund customers.
This risk increases if:
You sell future-dated services (e.g. travel, courses)
There is a high number of chargebacks or complaints
Financial indicators show deterioration (e.g. lower credit score, insolvency filings)
Why Holds or Schedule Changes Happen
To reduce exposure and protect funds, we may:
Delay or change payouts intervall
Hold part of your balance in reserve
Switch you to a different payout frequency
What Should You Do If This Happens?
If you’ve been notified about a hold or schedule change:
Review the reason provided in our communication
Contact us if you need clarification or want to share updated financial details
Keep us informed of improvements (e.g. new funding, debt repayment)
We aim to use the least disruptive approach and work with you through the process.
Final Note
We understand payout holds and schedule changes can be frustrating. They are a standard part of risk management in payments, designed to protect you, your customers, and the broader payment system.
You can request a new review if your financial situation improves.
We are committed to fairness and transparency. If you have questions, please reach out — we’re here to help.