Also known as: Hold Period, Payout Hold
A Payment Hold Period is the window during which a broker withholds a partner's commission after a conversion, to confirm the client is genuine and the deposit is not reversed. Only after the hold clears is the payout released.
When a conversion fires, the broker records the commission as pending rather than payable. During the hold period it verifies the referred client is genuine and waits out the deposit's chargeback and refund window, since a funded account can still reverse in its first weeks. Only once that window closes without a reversal does the commission move from held to releasable.
For the partner this reshapes cash flow: a conversion is not spendable revenue the moment it appears in the dashboard, but only after its individual hold clears. A 14-day hold means a conversion on the 1st pays around the 15th. Partners forecasting cash need to model commission on a hold-adjusted basis, and should be careful not to mistake a payout that is simply mid-hold for a payout the broker is refusing.
The broker logs the FTD but marks the commission as pending, not payable.
The broker confirms the client is genuine and monitors for chargebacks.
The hold runs its full length, typically one to four weeks.
With no reversal, the commission moves from held to releasable.
The cleared commission is paid on the next scheduled cycle.
Why it matters for partnership: The hold protects the broker against chargebacks and fraudulent FTDs, but it also delays a partner's cash. Understanding its length lets partners forecast real cash flow rather than booking commission the moment a conversion fires.
A broker applies a 14-day hold on new FTDs. An affiliate's conversion on the 1st is not paid until the 15th, once the deposit has survived the chargeback window.
| Aspect | Payment hold period | Rolling reserve |
|---|---|---|
| What is withheld | The whole conversion's commission | A percentage of each payout |
| Duration | Until that conversion clears | A fixed rolling term |
| Trigger | Applied to new conversions | Applied to all payouts |
| Purpose | Verify the specific FTD | Buffer against future chargebacks |
Factor the hold period into your cash-flow model; a conversion is not spendable revenue until its hold clears.
Confusing the hold period with non-payment and disputing a payout that is simply still within its hold window.
To ensure the referred client is real and the deposit will not be charged back before commission is released.