In practice
A common structure holds a percentage of sales for a fixed number of days, then releases each held amount once its period ends. At $100,000 monthly volume, a 10% reserve held for 180 days settles at about $60,000 held. Try your own numbers in the rolling reserve calculator.
Common confusion
A rolling reserve is not a fee: the money remains the merchant's and is released later, subject to the agreement and any disputes.
Frequently asked questions
Is a rolling reserve refundable?
Yes, held funds are released after the holding period, but the processor can use them to cover refunds, chargebacks or fees as the contract allows.
How long are rolling reserves held?
It depends on the contract. Holding periods vary with the risk being covered, such as how far ahead customers pay for delivery.