Rolling reserve
Also called: Reserve, Holdback
Quick definition: A percentage of your daily sales (typically 5-10%) that the processor holds for 6-12 months to cover future chargebacks and refunds. Common for high-risk and new ecommerce merchants.
✓Editorially reviewedReviewed by Sam Patel, Merchant services editorUpdated April 1, 2026How we make moneyMethodologyAdvertiser disclosure
In plain English
If a processor sets a 10% rolling reserve with a 6-month release, every $1,000 in sales contributes $100 to the reserve. After 6 months, that $100 is released back to you (usually monthly) — assuming you didn't burn through it on chargebacks.
Reserves are most common in high-risk industries (CBD, travel, subscriptions), new merchants with no processing history, and merchants with elevated chargeback rates.
Why it matters for your bill
A 10% reserve materially affects cash flow. After 3-6 months of clean processing, ask the processor to step the reserve down (10% → 5% → 0%). Many will negotiate.
Related concepts
FAQ
Yes — once you have 6 months of clean processing, request a reduction. Processors would rather keep your business than lose it to a competitor.
Rolling reserves grow with each transaction and release on a delay. Capped reserves stop accumulating once a fixed dollar amount is reached.
How we research & score
- •Definitions reviewed against current card-network and PCI SSC documentation.
- •Updated when card-network rules or fee structures change.
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