What Is a Rolling Reserve? How Held Funds Work for Merchants

A rolling reserve is a share of a merchant's card sales that a payment provider may hold back for a period and then release on a schedule. It acts as a cushion for the provider against refunds, chargebacks and other costs that can appear after a sale. Whether a reserve applies, how large it is and how long it is held depend on the agreement, so the terms matter more than any general rule.

• Held share: a portion of each sale, or of the daily total, that is not paid out straight away.
• Rolling: the held amounts are released later on a set schedule, while new amounts are held.
• Terms vary: the share, the period and the conditions are set in your agreement.

This guide is the written companion to our short video on the same topic.

What is a rolling reserve?

A rolling reserve is money from your sales that the provider keeps for a time instead of paying it out immediately. The word rolling describes the pattern: as older held amounts are released, newer ones are being held, so the reserve moves forward over time.

The reserve is still your money. It is a delay in when you can use it, not a fee. Whether any reserve applies to a merchant depends on the provider and on how the business is assessed.

Why might a provider hold a reserve?

After a sale, costs can still appear. A customer may ask for a refund, or may start a dispute with their bank. You can read how that works in what a chargeback is and how it works and in how card refunds work.

A provider may hold a reserve to cover these possible costs while a merchant is new or while a business is considered higher risk. It is a risk-management tool, and the reasoning behind it is set by each provider.

How does a reserve change what you receive?

Without a reserve, the money from settled payments is paid out on the normal schedule. With a reserve, a held share is taken out of that payout, and the rest is paid as usual. Later, the held share is released on the schedule in your terms.

To see how money moves from a sale to a payout, read authorization, capture and settlement explained. If you need to check what has been paid and what is waiting, our guide on how to run financial reports shows where to look in the EPaySe merchant dashboard.

What should you check in your terms?

Read the reserve section carefully before you agree. Useful questions include the following.

• What share is held, and is it applied to each sale or to a daily total?
• How long is each held amount kept before release?
• Can the share or the period change, and under what conditions?
• Is the held amount shown in your reports, and where?
• What happens to held funds if you close the account?

Keep the answers in writing. We do not quote any share or period here, because there is no figure that is true for every provider or merchant.

Does a reserve mean something is wrong with the business?

Not necessarily. A reserve is a common way for providers to manage risk, particularly for new merchants and for categories that see more disputes. It is about the provider's exposure, not a judgement on the quality of your business.

EPaySe is a payment gateway in development for high-risk and regulated businesses, reviewed and approved case by case. What terms apply to a particular merchant depends on that review.

FAQ

What is a rolling reserve in simple words?

It is a share of your sales that a provider holds back for a period and then releases on a schedule. New amounts are held while older amounts are released.

Is a rolling reserve a fee?

No. The held money is still yours. It is a delay in when you can use it. Fees are charged separately and are set out in your agreement.

How long are funds held?

It depends on the agreement. The period is set in your terms, so check the exact wording rather than assuming a standard length.

Can a reserve change over time?

Some agreements allow changes under stated conditions. Ask for those conditions in writing before you agree.

Where can I see held funds?

That depends on your provider's reporting. Ask where held amounts appear and how often they update.