v3.20.1
CASH DUE FROM GATEWAYS (Details) - Schedule of Other Current Assets - USD ($)
Dec. 31, 2019
Dec. 31, 2018
Schedule of Other Current Assets [Abstract]    
Cash due from Gateways $ 3,073,183 $ 291,112
Amount due from gateways and merchants – hold and fees 4,824,223 0
Reserves [1] 5,353,661 474,224
Total cash due from gateways 13,251,067 765,336
Chargeback Allowances (1) [2] 0 (139,374)
Allowance of uncollectable – hold and fees [2] (4,824,223) 0
Total cash due from gateways, net $ 8,426,844 $ 630,699
[1] Reserves are essentially an escrow fund that protects a gateway/card issuer from financial losses. In the Reserve, funds are held until chargeback time limits expire.
[2] During 2018, the Company absorbed all chargeback costs as a cost of services provided - essentially a sales promotion tool to onboard customers in 2018. The Chargeback Allowance shown in the table above reflects our estimate of potential chargebacks that are likely to be realized in 2019, which are connected to sales transactions that occurred in 2018. The allowance decreases the amount that GreenBox is owed from the Gateways we use in our proprietary ecosystem. In 2019, the actual dollar amount of chargebacks will be reconciled with our allowance.