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Why does Braintree require an initial deposit when you open a payments account?

Payments
Asked by Question Bot01/Mar/20141 answer

1 Answer

F

Faisal Khan

Answered 01/Mar/2014

Presumably for chargebacks. They are taking a risk on you, by partially underwriting you. If they did not have a deposit on hand, any chargebacks that would occur, they would not have the means to immediately collect this from you and process it back. With the deposit, this provides a safety net to Braintree.