Balances

Learn more about how Dappr sales balances works.

Overview

Navigating the world of business finances can be complex, but Dappr's sales features are designed to simplify this process. One of the key aspects of managing your finances with Dappr involves understanding the different types of balances and how payouts work. This guide will walk you through everything you need to know about managing your funds effectively with Dappr.

Types of balances

In your Dappr sales account, there are four main types of balances, each serving a specific purpose:

1. Available for Regular Payout:

   • What It Is: This balance represents the funds in your account that are available for transfer to your Dappr Checking Account.

   • How It Works: If you’ve set up a payout schedule (daily or weekly), transfers from this balance will happen automatically on the next scheduled date. This is a smooth, automated process designed for your convenience.

   • Manual Option: If you haven’t set a schedule, you can access these funds through the Instant Payout feature, detailed below.

2. Available for Instant Payout:

   • Quick Access with a Fee: This balance is your go-to for immediate fund access. It includes a 1.5% payout fee on the total amount. For instance, an instant payout request of $100 will incur a $1.50 fee, resulting in a net payout of $98.50.

   • What’s Included: This balance includes funds yet to be received by the bank (typically taking 3-7 business days). The fee is for the convenience and risk Dappr assumes by making funds available before bank confirmation.

3. Funds Pending:

   • In Transit: These are funds on their way but not yet received from the bank. They aren’t available for regular payout but can be accessed via instant payout.

   • Included in Instant Payout: This inclusion is what makes instant payouts a flexible option, offering you liquidity even when funds are still processing.

4. Balance Withheld for Sales Taxes:

   • Tax Compliance Made Easy: Dappr’s tax and nexus monitoring feature automatically withholds sales taxes incurred through our payment processing service.

   • Ensuring Tax Obligations are Met: This safeguard ensures you always have the necessary funds for tax payments.

   • Manual Payout Requests: To access these funds, you’ll need to request a payout manually. This gives you control over when and how much to transfer for tax purposes.

Payouts

Understanding how payouts work is crucial for effective cash flow management. Here’s a breakdown of the process:

• Setting Up Payouts: You can configure your payout preferences on the Balances page on the Sales page. Choose between daily, weekly, or manual payouts based on your business needs.

• Initiating Regular Payouts: If you’ve set a schedule, relax and let Dappr do the work. Your funds will be transferred to your Dappr Checking Account automatically on the designated dates. You can configure regular payouts by clicking on the "Configure payouts" on the same Balances page.

• Opting for Instant Payouts: Need funds faster? Instant Payouts are there for you. Remember, this comes with a 1.5% fee but offers immediate liquidity. Request an instant payout from the Sales overview page or the Balances page, by clicking the "Instant payout" button.

• Requesting Payout for Tax Funds: For sales tax withholdings, you have full control. Request a transfer whenever you’re ready to settle tax obligations, from the Balances section on the Sales page.

Routine risk reviews

At Dappr, we prioritize the security and stability of our financial platform. As part of this commitment, our partner bank and payment processor occasionally conduct routine risk reviews. These reviews are essential for maintaining the integrity of our services but can result in a temporary pause in both instant and regular balance payouts. This article is designed to help you understand why these reviews happen and what you can expect during this process.

Risk reviews are standard practice in the financial industry and can be triggered by various factors, including:

1. Significant Increases in Revenue: A sudden and substantial increase in your account's revenue can trigger a review. This is a precautionary measure to ensure that the growth aligns with standard business practices.

2. Invoices with Limited Descriptions: Invoices that contain vague or generic descriptions (like "Product" or "Service") might raise flags. Detailed invoices help in maintaining transparency and reducing the risk of fraudulent activities.

Review process

1. Duration: Typically, a risk review takes about 1-2 business days. However, the duration can vary based on the complexity of the review.

2. Payout Pause: During the review, there will be a temporary pause on both instant and regular balance payouts. This means you won't be able to access the funds in your Dappr account for payouts until the review is complete.

3. Invoicing and payments remain active: You can continue to send out invoices and receive payments from customers during the review, and your customers won't be informed of the ongoing review in any way.

4. Communication: We strive to keep you informed. You’ll receive notifications about the start and end of the review process, and we’ll provide updates if there are any significant developments, or actions are required on your part.

How to Prepare and Respond

1. Maintain Detailed Records: Ensure that your invoices and financial records are detailed and accurate. This helps in expediting the review process.

2. Plan for Potential Delays: Since reviews can temporarily affect your access to funds, it’s wise to plan for this possibility in your financial management.

3. Respond Promptly to Inquiries: If our team or partners reach out for additional information, responding promptly can help speed up the review process.

4. Stay Informed: Keep an eye on your Dappr account notifications for any updates or changes to your account status during a review period.

Routine risk reviews are a vital part of maintaining a secure and trustworthy financial environment at Dappr. While they can cause temporary inconveniences, they are essential for safeguarding against fraud and ensuring compliance with financial regulations. We appreciate your understanding and cooperation during these reviews and are committed to resuming normal operations as quickly as possible.

If you have questions or concerns, we always invite you to reach out to us directly by chatting with us through our mobile app or on Dappr.com, or call us at [phone].