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Rolling reserves explained
Updated October 2026
A reserve is money your processor holds back from your payouts to cover future refunds and chargebacks. It's not a fee: you get it back, just later.
Types of reserve
- Rolling reserve: a percentage of each day's sales (for example 10%) is held for a set period (for example 90 days), then released on a rolling basis.
- Fixed (capped) reserve: a fixed amount is held, often taken from payouts until it's reached.
- Minimum / upfront reserve: a lump sum held at the start, common in high-risk underwriting.
Worked example
With a 10% rolling reserve held 90 days and $1,000 of sales a day, $100 a day is held. From day 91 onward, the reserve from day 1 is released each day, so your payouts return to roughly normal while about $9,000 stays in reserve.
Why processors set them
- Long delivery times or pre-orders
- Subscriptions and high average order values
- A rising dispute rate (see chargeback thresholds)
- High-risk categories
Negotiating a lower reserve
- Show your history: months of processing with low disputes.
- Show fulfillment proof and a clear refund policy.
- Ask for a cap or a review date ("reduce to 5% after 90 days with dispute rate under X%").
- Get the terms in writing.
Real cases from the tracker
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Where to go next
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FAQ
Do I get my rolling reserve back?
Yes. Reserves are your money held as security. They are released after the hold period, minus any refunds or chargebacks they were used to cover.
What is a typical rolling reserve?
Terms vary widely by processor and risk. Percentage reserves held for 90 to 180 days are common in high-risk processing.
Can I remove a reserve?
You can ask your processor to review it once you have a good processing and dispute history. Get any change in writing.
Related guides
- Stripe 120-day hold explained
- PayPal 180-day hold explained
- High-risk merchant account options
- Chargeback ratio thresholds that trigger reviews