Rolling Reserve

How a rolling reserve works

With a rolling reserve, the processor holds back a percentage of each day's sales and releases that money after a set number of days. For example, under a 10% reserve held for 90 days, $1,000 in sales today pays out $900 now and $100 roughly 90 days later. The reserve rolls forward every day, so after the first period you receive steady releases alongside your new sales.

Want to see the numbers for your business? Try the rolling reserve calculator.

Why processors use reserves

A reserve protects the processor if a business gets a wave of chargebacks or refunds, or closes without covering them. Reserves are common for high-risk merchant accounts, new businesses without processing history, and businesses that deliver goods or services long after payment, such as travel.

Other types of reserve

• Up-front reserve: a fixed amount held at the start of the account.
• Capped reserve: money is held until the reserve reaches a set total.

Reserve terms are set during underwriting and can often be reviewed after a period of steady processing. See also our article on payment holds.