What is a rolling reserve? Why payment providers hold back some of your money
By SendPay Business · · 2 min read
A rolling reserve is a share of a business's card takings that a payment provider holds back for a set period before paying it out. It protects the provider if customers later ask for refunds or raise chargebacks.
Why providers use them
When a customer disputes a card payment, the provider may have to return the money even if the business cannot pay it back. A reserve covers that risk. Providers are more likely to ask for one from new businesses, businesses that take payment long before delivering, or businesses with many disputes.
How a rolling reserve works
- The provider agrees a percentage and a holding period with the business.
- That percentage of each day's card takings is held back.
- Each held amount is released once its holding period ends.
- The reserve keeps rolling as new payments come in and old ones are released.
How to reduce a reserve
Keeping disputes low, delivering promptly, giving clear refund terms and building a steady track record usually help. Many providers review reserves after a period of good history, so it is worth asking.
Where SendPay fits
SendPay platforms include payment links, invoicing and subscriptions under your own brand, powered by licensed partners. SendPay tells you in writing which licences apply to your platform before you pay.
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How much will a rolling reserve hold back from me?
Enter your monthly card sales, the share held and the number of days, and the free calculator shows the most held at once and what you receive in the first month.
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This guide is general information, not legal or financial advice. SendPay Business is a technology company, not a bank, and does not take deposits; regulated services on the platforms are provided by licensed partners. PayPal, Patreon and Substack are named as reference points only and are not affiliated with SendPay Business.