A reserve is a portion of your revenue that your payment provider holds back rather than paying out, as protection against future chargebacks and refunds. It is not a fee — the money is still yours — but you cannot use it until it is released.
The three types
| Type | How it works | When used |
|---|---|---|
| Rolling | A % of daily revenue held for a fixed period, then released | Most common; ongoing risk management |
| Fixed | A set amount held until the account closes | New or higher-risk accounts |
| Up-front | A deposit before processing begins | High-risk categories |
A rolling reserve is the one you are most likely to meet. The first 90 days feel painful because holds accumulate with nothing releasing; after that the inflow and outflow balance and it becomes a fixed drag on working capital rather than a growing one.
Why they are imposed
Every reason traces back to the same liability: if you take money and do not deliver, the acquiring bank funds the refunds. A reserve is that risk, priced in cash.
- A new account, with no history to judge.
- Rapid volume growth, which looks identical to fraud from the outside.
- A long gap between payment and delivery — pre-orders, events, annual contracts.
- An elevated dispute rate, the most direct signal there is.
- A high-risk category, judged on historical chargeback data for that sector.
Getting one lifted
- Keep disputes low
Well under 0.9%, and ideally under 0.5%, sustained over several months. This is the single strongest signal.
- Keep volume predictable
Steady growth reads very differently from a sudden spike. If a spike is planned, say so first.
- Shorten the delivery gap
The closer payment is to fulfilment, the smaller the window in which the risk exists.
- Build a track record
Six to twelve months of clean processing is usually the threshold at which providers will reconsider.
- Ask explicitly
Reserves are rarely reviewed automatically. Request a review and point at the evidence above.
GOOD QUESTIONS
Frequently asked
Why is my processor holding my money?+
Because it is liable if you take payment and fail to deliver. A reserve is a buffer against that. It is most common with new accounts, sudden volume growth, long gaps between payment and delivery, and elevated dispute rates.
What is a rolling reserve?+
A percentage of each day's revenue — commonly 5–10% — held for a fixed period, typically 90 or 180 days, then released on a rolling basis. After the first period you receive a steady stream of releases alongside new holds.
How do I get a reserve removed?+
Demonstrate a low dispute rate over several months, keep volume stable and predictable, and ask. Reserves are risk-based, so reducing the risk is what removes them. Providers rarely lift one without being asked.
Can a reserve be imposed without warning?+
Yes, and it often is. A sudden volume spike or a jump in disputes can trigger one immediately. Telling your provider in advance about a large promotion is the simplest preventative measure available.