The holdback, also called the specified percentage, is the share of your receipts the funder collects. Because it is a percentage, the dollar amount rises on busy days and falls on slow ones.
A holdback works as intended only when collection follows your sales. Split funding through your card processor does that automatically. With a fixed daily ACH debit, the funder sets a payment meant to approximate the holdback, and you rely on the reconciliation clause to adjust it when sales drop.
Example: With a 10% holdback, a $3,000 card day sends $300 to the funder and a $1,200 day sends $120.
Ask how the holdback was set and what share of your average monthly deposits the payment represents. Try your own numbers in the holdback calculator.