Rolling Reserve

May 21, 2020

A rolling reserve is a risk management strategy to protect the merchant and its banks from potential loss due to chargebacks. A portion of the credit card volume processed will be secured to cover for the potential business risk relating to chargebacks. Acquiring banks calculate the rolling reserve amount based on a certain percentage of each transaction (for example, between 5-15% on every transaction). Rolling reserves are kept on hold for a defined period of time and will be released at the end of this period.