Retentions

Surety Retentions

This is the amount being retained as surety to be provided to the banks against the value of your batch. Surety, in effect, is a minimum liquidity level that we must provide our bankers with in order to be able to process debit orders. It is also used as additional cover for late returned transactions not provided for in your unpaid retention. Whatever remains of this amount after 22 working days will be released to the available balance on your Netcash account. Surety retention is 10 percent of the value of the batch and will be retained on every batch processed. Any amount remaining after 22 working days forms part of the available balance on your Netcash account.

Where the legal entity is a sole proprietor, the 10 percent surety will not apply. In this case, for the first 3 months after the commencement date, Netcash will retain 100 percent of the value of any batch processed. After 22 working days, any remaining amount forms part of the available balance and can be released to your bank account. After the initial 3 months, Netcash is prepared to give consideration to reducing the 100 percent surety retention to 20 percent. This will depend on a number of factors and the granting of the reduction of the surety retention is entirely at the discretion of our operations department.