A payout hold is a decision by a payment processor, marketplace or platform to delay sending a merchant or seller money that is already recorded in their balance. The sales have been made and the funds collected from customers, but the provider keeps them in its pooled account instead of transferring them on the normal payout schedule.
Providers apply holds because they are liable if a sale is reversed after the proceeds have gone. Typical triggers are a new account with no history, a sudden rise in sales, a spike in refunds or chargeback claims, goods sold long before delivery, incomplete identity documents or a sanctions screening alert. The hold ends when the merchant supplies documents such as invoices or proof of shipment, or when a set period passes. It differs from a merchant reserve, which is an agreed standing arrangement, though the effect on cash flow is similar.