Definitions (3)
Popular Terms
1. General: (1) Sum of money that remains unpaid until certain conditions are met. (2) Sum of money kept as a reserve to cover certain contingencies.
2. Banking: (1) Portion of a construction loan amount that is not released until a certain stage (such as completion of the foundation) is reached. (2) Portion of a merchant's revenue held by a credit card processor to cover possible disputed charges, chargeback fees, and other such expenses.
3. Contracting: Portion of payment to a contractor held by a customer until the job is finished to the customer's satisfaction.

Use 'holdback' in a Sentence

For vendors accepting American Express there is a holdback of fifteen percent of every purchase for forty five days to verify customer satisfaction.
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The mob hitman was paid half up front, and was told the rest would be kept in holdback until he brought the severed head, and perhaps a few fingers as well for posterity.
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There was a holdback of fifty percent on the deal to ensure it is completed exactly as it was agreed upon.
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