Rolling reserves, explained without the jargon.
Understand what is withheld, when it may be released, and what to ask before you commit.
Inside this guide
What is a rolling reserve?
A rolling reserve generally withholds an agreed portion of processed funds for a stated period. It is designed to cover exposure such as refunds and disputes after the original sale. Exact calculations and release conditions depend on the agreement.
A simple example
If an illustrative contract withholds 10% of a $10,000 eligible batch, $1,000 goes into reserve. If its release period is 180 days, that batch may become eligible for release after that period, subject to the contract and outstanding liabilities. This is an example, not a provider offer.
Read the release conditions
Check when the clock starts, whether there is a cap, what triggers changes, and how termination affects release. A reserve review is not the same as an automatic reduction.
Plan around available cash
Build your forecast from net available settlement rather than gross sales. Include refunds, fees and delayed payouts, and ask the provider for examples using your own projected volumes.
Further reading: Stripe — reserves. Provider-specific terms vary.
Payment Guide helps you research the structure, understand the questions and prepare your next conversation.