Risk Margin Estimation Guide (Merchant Self-Assessment Version)

by PisellSep 23rd, 2025

Pisell Payment

Applicable Audience: Merchants who have activated Pisell Payments and want to prepare or pre-deposit a margin in advance to avoid settlement and collection being affected by unexpected risk control triggers.

Note: This document provides a self-assessment method and estimation formula to help merchants determine a “safe preparation amount.” The final required amount is still subject to our official written notification from risk control.

1. Understand Two Key Points

1. What is a Risk Margin?
A risk mitigation tool used to cover potential losses such as chargebacks, abnormal refunds, or compliance penalties. It is not an additional fee and will be returned according to the rules once release conditions are met. For details, please refer to https://www.pisell.com/blog/voluntary-withholding-funds-reserve-explanation.

2. How do we estimate it? (Two-Step Method)

Base amount (a representative value of your business scale) × Coefficient (adjusted up or down based on risk characteristics).
Merchants can first estimate their own “base amount” and share their actual business situation with Pisell staff, who will then confirm the preparation amount based on the actual operations.

2. Step 1: Determine a “Risk Margin Base” (choose the most reliable measure)

It is recommended to use your normal daily average as the main reference.

Monthly transaction volume: Average daily transaction volume over the past 30 days.
Daily transaction volume: Highest single-day transaction volume in the past 30 days × 0.5 – 1.0.
Average order value: Highest single transaction amount × 2 – 3.

Tip: If you already know in advance which days will involve major promotions or opening-day sales boosts, you can directly use the estimated daily transaction volume for that event day as the base. This better reflects actual business conditions.

1. Risk Margin Base (Reference Range)

Merchants may conduct self-assessments based on their own average order value, daily transaction volume, or monthly transaction volume, using the following table as a reference:

Leve1	Average Transaction (AUD)	Maximum Transaction Value (AUD)	Daily Online Payment Total (AUD)	Monthly Online Payment Total (AUD)	Security Deposit Base (AUD)
1	≤ 50	≤200	≤ 900	≤ 15,000	0
2	≤ 120	≤500	≤ 1,500	≤ 27,000	200 ~ 300
3	≤ 500	≤1000	≤ 3,000	≤ 54,000	500 ~ 1,000
4	≤ 1,000	≤2000	≤ 6,000	≤ 108,000	1,100 ~ 2,200
5	≤ 2,000	≤4000	≤ 12,000	≤ 216,000	3,500 ~ 5,500
6	Above the ranges	ABOVE	Above the ranges	Above the ranges	Please contact the Pisell Risk Control Team

Table Header Definitions

Level: Risk tier, only used to locate the row; no need to interpret the number itself.
Average Transaction Value (AUD): The stable average transaction amount over a recent period.
Maximum Transaction Value (AUD): The estimated highest possible amount for a single order.
Daily Online Payment Total (AUD): The average daily amount of successfully settled online payments.
Monthly Online Payment Total (AUD): The total online payment amount accumulated over the past 30 days or a calendar month.
Deposit Base (AUD): The benchmark range of the security deposit estimated for that tier (not the final amount, only for self-assessment and discussion).

2. Query Steps (3-Step Process)

Choose a Metric: Estimate your deposit base range using one of the dimensions: Average Transaction Value / Maximum Transaction Value / Daily Online Payment Volume / Monthly Online Payment Volume.
Locate the Row: Match your actual value in the chosen dimension against the table, and find the first row that meets the “≤ threshold.”
Read the Range: Refer to the value range in Column E (“Deposit Base”) of that row—this is your self-assessed deposit base.

3. Quick Examples

Example A (by Avg. Transaction Value): Your average transaction value is 45 AUD → falls under “≤ 50” → Column E: 0.
Example B (by Max. Transaction Value): Your maximum possible single order value is 400 AUD → falls under “≤ 500” → Column E: 200–300.
Example C (by Daily Online Payment): Your average daily online payment is 2,800 AUD → falls under “≤ 3,000” → Column E: 500–1,000.
Example D (by Monthly Online Payment): Your online payments over the last 30 days total 82,000 AUD → falls under “≤ 108,000” → Column E: 1,100–2,200.

Summary: In this case, the self-assessment would first suggest 1,100–2,200 AUD. For budgeting purposes, we recommend taking the upper bound (2,200) as a more conservative estimate. This will later be adjusted with a risk coefficient in Step 2.

If your values exceed the highest row threshold (“≤ 216,000”), → please contact the Pisell Risk Control team directly for an accurate evaluation.

⚠️ Note:

The amounts in the table represent only the reference deposit base range.
The actual required deposit will be multiplied by the applicable risk coefficient.

3. Step 2: Provide Your Risk Profile

1) Positive Tags (Lower Risk → Eligible for Discounts)

☐ Primarily physical dine-in or in-store fulfillment
☐ Stable cooperation with a long-term good record
☐ Mainly in-store/pickup orders, few logistics disputes
☐ Low historical chargeback/refund rates, complete documentation

The combined positive discount is generally no lower than −0.6 (system lower limit: 0.4).

2) Negative Tags (Higher Risk → Subject to Surcharge)

☐ High proportion of online/mail orders or third-party delivery
☐ High-risk categories (e.g., top-ups, recharges, virtual goods, stored-value products, etc.)
☐ Aggressive marketing/cashback/high subsidies/intensive promotions
☐ High proportion of large single transactions (≥ AUD 200)
☐ Exceptionally high monthly transaction volume (≥ AUD 200k)
☐ Elevated refund/chargeback rates

Friendly Reminder: The above values are for self-assessment guidance only. Once you provide the relevant tags, we can help you determine a reliable preparation amount, but the final figure will be based on the official risk evaluation.

Merchant’s Actual Security Deposit =
Base Amount × Risk Multiplier

- Base Amount: Determined by the merchant’s transaction scale.
- Risk Multiplier: Evaluated by the Pisell risk control team (range: 0.4 ~ 2.0).

4. Step 3: Calculate Your Preparation Amount

Objective: Once you submit the necessary information, Pisell’s Risk Control team will provide a suggested preparation amount (i.e., how much to set aside in advance if you plan to pre-deposit the risk margin). This figure is for reference only and does not represent an actual deduction.

Recommended Information to Prepare/Submit:

- Sales data for the past 30 or 90 days (daily or monthly granularity).
- Product/service type; whether it involves top-ups, virtual goods, or high-value items.
- Details of promotions, proportion of large orders, or seasonal peaks (e.g., holidays).
- Any anomalies: chargebacks, high refunds, frequent cancellations, etc.
- Your preferred retention target or cash flow arrangement (e.g., if a withdrawal retention amount has already been set)
Output & Next Steps:
- We will send the evaluation results via email, including the suggested preparation amount, main risk factors, and a brief guide if a pre-deposit is needed.
- If you decide to pre-deposit: simply set a withdrawal retention target in the backend. The system will automatically allocate daily settlements to reach the target.
- If you decide to not pre-deposit: that’s fine. Just note that if risk control is triggered later, the system may pause settlements or prioritize replenishing the margin before releasing payouts, which could cause short-term fluctuations in your withdrawable balance.

Note: Evaluation results are typically provided within 1–2 business days; if the business model is complex or additional documentation is required, the timeline may be extended.

5. Risk Margin Handling Process

Basic Rules Review

- When a risk control signal is triggered, the system will set or adjust the Risk Margin target (e.g., target = 500 AUD).
- Starting from the next day (T+1), during daily settlements, the system will first allocate funds to reach the Risk Margin target, and then settle any remaining amount to the merchant.
- If a refund occurs using the Withdrawal Retention during this period, the system will replenish the Risk Margin in the next settlement cycle after the target is covered.

Timeline Example (Target = 500 AUD)

- 9/10 (T0): Risk control triggered; the system sets the Risk Margin target to 500 AUD. No funds are deducted on this day; the target is just recorded.
- 9/11 (T+1):
  - Settlement amount for the day: 1,000 AUD;
  - System allocates 500 AUD to the Risk Margin;
  - Remaining 500 AUD is settled to the merchant’s withdrawable balance.
- 9/12 (T+2):
  - 9/12’s settlement is processed normally to the merchant.

Two Scenarios: Insufficient vs. Excess

- Insufficient Settlement Amount (< Required Replenishment):
  - Example: Risk Margin target = 500 AUD, current balance = 100 AUD, need to replenish 400 AUD, but the day’s settlement is only 150 AUD
  - System allocates 150 AUD, increasing the balance to 250 AUD; the remaining 250 AUD will be replenished in future settlements until the target of 500 AUD is reached
- Excess Margin:
  - If the target is later lowered or the system determines that excess funds can be released after a long period without risk, the surplus will be returned to settlement. (Note: this does not mean it is immediately withdrawable; release is determined by the system)

Relationship with Withdrawal Retention (Common Confusion)

- Daily settlement order: first replenish Risk Margin → then (if set) replenish Withdrawal Retention → remaining funds to merchant
- Therefore, if a merchant sets a high Withdrawal Retention target at the same time, the available withdrawable amount may temporarily decrease. This is normal behavior.

6. Frequently Asked Questions

Q: Is the pre-deposited security margin a fee?
A: No, it is a risk mitigation reserve. Once the release conditions are met, it will be returned to your settlement account according to the rules.

Q: After pre-depositing, will the amount change later?
A: Yes, the margin is dynamically managed. If your operations stabilize and disputes decrease, you can request a review and adjustment; conversely, if risk temporarily rises, the margin may be adjusted accordingly.

Q: Can it be used together with the “Withdrawal Retention (Refund Reserve)”?
A: No. The Withdrawal Retention is strictly for refund purposes only.

7. Disclaimer

This document is provided for merchant self-assessment only, to help you prepare sufficient funds in advance and avoid disruptions to settlement caused by unexpected risk control triggers. The final security deposit amount and ratio are subject to Pisell Risk Control’s official written notice.

📌 Pisell Risk Control Team reserves the final right of interpretation.