Step 6: Make Payment

To complete the reseller setup process, please pay the one-time activation charge of $100 plus the initial deposit that will be placed into your reseller account. The minimum initial deposit depends on whether you choose to pay by check or credit card. Check payments require a $500 minimum deposit, but there is no minimum for credit card payments.

You should consider the initial and subsequent deposits as your account "reserve" from which Hostway will automatically deduct for services rendered. The level of your reserve determines the frequency, amount and type of services you can safely offer to your enduser customers without any unnecessary delay. Since we do not fulfill services on a credit or invoiced basis, it is critical to maintain the reserve at a level corresponding to the your enduser activity. Failure to do so will result in unfulfilled enduser orders.

Whether you pay by credit card or check, there are two restrictions by which charges and payments are made:

Authorization Limit: This is the maximum dollar amount of an order from your account (for yourself or endusers). Any one order exceeding this limit will not process. If you pay by credit card, the limit is $100; if you pay by check, the limit is $200.

Collection Threshold: Once your balance exceeds this threshold, Hostway expects payment to be made. No additional orders will be accepted until the balance is paid off. The threshold for both credit card- and check-paying resellers is $50.

REAL-WORLD SCENARIO

Let us combine all three concepts (reserve, authorization limit, collection threshold) in order to describe a real-world scenario. In this scenario, the following conditions exist:

The reseller pays by credit card.
The reseller's balance is currently at $40.
The reseller's reserve is at $300.
The reseller's enduser places one order that costs $160.
The reseller's enduser places a second order that costs $80.

As a result, the following statements are factual:

The reseller's collection threshold of $50 has not been reached since the balance is at $40, thus new orders are accepted.
The reseller has an order of $160 that exceeds the $100 authorization limit, thus this particular order cannot be readily approved.
The reseller has an order of $80 that does not exceed the $100 authorization limit, thus this particular order can be immediately approved and fulfilled.
The $80 charge increases the reseller's balance from $40 to $120.
The reseller's new balance of $120 exceeds the collection threshold of $50, thus the balance must now be paid.
The $120 balance is automatically deducted from the reseller's reserve of $300, leaving a reserve of $180.
The reseller anticipates additional orders the following week and decides to add to the reserve now.

Click Activate Account to complete the initial setup process. Congratulations!