What is a Rolling Reserve?

A Rolling Reserve is a risk management strategy to protect the merchant and its banks from potential losses due to chargebacks, refunds, claims, outstanding fee's etc.


A portion of the card volume processed will be secured to cover for the potential business risk relating to negative charges. Acquiring banks calculate the rolling reserve amount based on a certain percentage of each transaction. Rolling reserves are kept on hold for a defined period of time and will be released at the end of this period.